New AFP insurance cost starting this month

[Himon2413]

The average rate deducted from the member's salary each month has dropped from 1.32% to 1.23%, says the SBS.

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Another important effect of the reform of the private pension system is the reduction in the average cost of disability, survival and burial insurance charged to AFP contributors .
To achieve this, on September 13, the Superintendency of Banking, Insurance and AFP (SBS) held an auction that was won by four companies – three of which are foreign – that offered the lowest rates on the market.
In this way, the discount that will be pakistan number screening applied to all members at the end of each month will go – starting in October of this year – from an average of 1.32% of the total salary to an average of 1.23%, according to the SBS.
COLLECTIVE SYSTEM Until September, workers who opted for an AFP to manage their retirement pension could not choose the insurer that would be responsible for compensating them or their beneficiaries in the event of an eventuality.
It was the administrators themselves who assigned users coverage from a company , in most cases, coming from the same economic group.
And the rates they applied were different. Prima and Profuturo , for example, deducted 1.30% and 1.38%, respectively, from their members' salaries until September.
Similarly, previously a single insurance firm was responsible for managing the risks of each worker.
From now on, if an accident occurs, the four companies that won the auction will contribute to pay the corresponding benefits, according to the fractions that have been awarded. This system has been called Collective Disability and Survival Insurance (Sisco).
The new cost of this protection in the private pension system will be valid only for 15 months, until December 2014, when another competition will be held. Unfortunately, contributors to Integra and Habitat were affected because they previously paid 1.22% and 1.16%, respectively, for the insurance.