The president of Peru's banking superintendency resigned late on Friday amid a wave of criticism in Congress of a pension reform that would have reduced payments to future retirees. Daniel Schydlowsky's decision to step down came ahead of a congressional vote that would have likely ousted him from his position since 2011 as president of the SBS, the Superintendency of Banking, Insurance and Private Pension Fund Administrators.
Schydlowsky said the recent pressure from lawmakers threatened the stability of the country's financial system and the autonomy of the SBS. "The institution and the professionals who make it up must not be exposed to arbitrary decisions that can harm it," Schydlowsky said in a letter to President Ollanta Humala.
Lawmakers had criticized the SBS's approval of a higher life expectancy to be used by the country's private pension funds that would have led to smaller payouts to retirees. The SBS suspended the proposal because of the controversy, which comes ahead of presidential and congressional elections in five months. Lawmakers also critized Schydlowsky for making frequent trips abroad. Congress is also considering legislation that would allow people to withdraw nearly all of their contributions to a private pension fund immediately upon retirement.
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