In Peru, public- and private-sector workers may choose between the individual account system and the public pension system. Those who do not make a choice are enrolled in the individual account system by default. Further, those affiliated to the public pension system may switch to the individual account at any time.

Contribution rates are different for each system. As of June 2010, workers affiliated to the public pension system paid 13% of gross earnings for old-age, survivors, and disability insurance, while affiliates to the individual account system  contributed 10% of gross earnings to their individual account plus an average of 1.95% administrative fees and 1.10% premiums for survivors and disability insurance. Employers do not contribute to either pension system on behalf of their workers.
There are four pension fund managers operating in Peru with total assets under management of approximately 78.1 billion nuevo soles (US$27.5 billion). The pension fund managers must offer three types of funds with varying degrees of risk: Fund 1, preservation of capital; Fund 2, balanced; and Fund 3, growth. A fourth fund, which would be limited to mainly fixed instruments, is currently under consideration.
More than 25 percent of these assets is invested abroad, 20 percent is invested in Peruvian government bonds, and the remaining investments include domestic stocks and bonds.
Article with courtesy of Social Security Online
Sources: "Ahorro previsional voluntario en los sistemas de capitalización individual países," FIAP, diciembre de 2006; Social Security Programs Throughout the World: The Americas, 2009; "Comisiones por la Gestión de Aporte Obligatorios y Primas de Seguro por AFP," Superintendencia de Banca y Seguros del Peru, junio de 2010; "Límites de inversion generals para los fondos administrados por las Administradoras Privadas de Fondos de Pensiones," Banco Central de Reserva del Perú, el 14 de septiembre de 2010; Boletín Semanal del Sistema Privado de Pensiones: Año 2010—Número 38, Semana del 13 al 17 de septiembre de 2010
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