Peru's Superintendency of Banking, Insurance and Private Pension Fund Administrators (SBS) reported that the ninth collective pension insurance auction reduced the premium payable by private pension system members from 1.37% to 1.12% of insured remuneration. The 18% reduction brings the rate to its lowest level since auctions began in 2013. The new premium applies from January 1, 2027, through December 31, 2028, generating estimated savings of PEN 339 million annually and PEN 678 million over the contract.
Organized by pension fund administrators, the auction covers the entire membership portfolio regardless of administrator, pooling risks across members. Seven portfolio shares were awarded to four insurers. Members pay a single premium calculated as the weighted average of the winning rates.
Statutory benefits remain unchanged. Eligible members, generally requiring at least four contributions in the eight months preceding the insured event, retain disability pensions equivalent to 70% of average remuneration for total disability or 50% for partial disability. Survivors' pensions and funeral expenses also remain covered. Earlier SBS amendments in April 2025 addressed access to these benefits by accelerating pension payment processes and making funeral expense claims more flexible.