Leaving and taking out AFP Habitat

Answers to your qestions about moving to, and living in, Peru,
scaponi
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Leaving and taking out AFP Habitat

Postby scaponi » Thu Aug 28, 2014 10:27 am

Hello,

Does anyone have experience with moving out of the country and getting their AFP habitat deposited into their account? They said the only way I could is after paying towards my pension in the US for 3 years (which I haven't done at all because I moved here after college to work).

I'm trying to decide if its worth it to come back in 3 years and get it or if there is a way now to get it deposited into a private account.

thanks!


argidd
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Re: Leaving and taking out AFP Habitat

Postby argidd » Thu Aug 28, 2014 11:17 am

You have to prove you have been making contributions for at least 36 months, pre or post your contributions in Peru. If you didn't make any contributions prior to you coming to Peru you have to contribute for 36 months abroad. At the moment, according to their rules, they will not give you that money.
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Argidd
scaponi
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Re: Leaving and taking out AFP Habitat

Postby scaponi » Thu Aug 28, 2014 6:07 pm

Thanks, yah thats basically what they told me. How do I prove that I have been making contributions? Would that be just to social security?
argidd
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Re: Leaving and taking out AFP Habitat

Postby argidd » Fri Aug 29, 2014 10:42 am

My sister did this. BUt she is a Peruvian living abroad; so it might be slightly different. Best is to ask them exactly what they need you to provide.

My sister provided statements from her 401k contributions and other documentation required (proof of resindecy in the US, letter from former employer, etc.).

I would recommend that you get all employer stuff before you leave, you never know what may happen and imagine if your former employer doesn't exist any more; you would be totally screwed!
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Argidd
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americorps
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Re: Leaving and taking out AFP Habitat

Postby americorps » Sun Sep 07, 2014 8:25 pm

http://www.prima.com.pe/0/modulos/JER/J ... =0&JER=144

Here is a link to the rules. This is for AFP Prima, but the afp rules are government mandated so they are virtually the same for each company. My strongest suggestion, is find someone you trust who will be in Peru and give them limited power of attorney to manage this. The AFP's HATE to let the money go so they reject applications all the time for minor things, such as a missing coma in a translation or a missing middle initial and things like that. If you do it from abroad, you will have to fix and mail the documents back each time and you will have to get them legalized at your nearest embassy. If you have a local delegate, they can do the translations and legalizations locally and save lots of time and money.

Some of the tricks, the different AFP's read the rules a little differently from time to time, but generally they do not allow Social Security to count, they require 36 months VOLUNTARY retirement contributions.

Another trick, and this is just ignorance in the system they built, many Western retirement accounts are second party accounts, or trusts. The retirement account is really a trust with you as the beneficiary. That is not a problem for demonstrating your 36 months of contributions abroad, but the AFP's will only transfer the money to an account with your name on it. That leads to a problem because if you transfer it directly to your retirement account, depending on where in the world you are, you do not have to pay taxes. However, if you transfer it to a personal account, you might have a tax obligation.

It has been 3 years since I last did this, so some of the rules may have changed. I no longer do it as I am no longer in peru and apart from offering some advice from time to time on this board, I no longer take calls or emails for the service.

Jamie Tunstall is a good personal financial advisor in Peru servicing the expat community, if you have a fair amount, it may be worth contacting him.

It requires a lot of work, mostly resubmitting forms, that when I did it, I would not do it for less than $2k US. It can be done on your own and it really is not that hard, it is just detail oriented and tedious.

You can not do it from within the country yourself generally because you can not do it until you turn in your carnet, and get certification that you have left the country from your employer and had not obligations to SUNAT

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