Dominican Pension System: How to ensure a dignified retirement?
SANTO DOMINGO.– The Social security constitutes a theme of Mandatory knowledge for both public and private employees, a good management of these concepts will allow them to have a better labor retirement, so raised Leymi Lora Cordova, legal consultant of the Superintendence of Pensions (SIPEN), when giving the conference "Main advances and challenges of the Dominican Pension System".
The activity carried out in the Osvaldo García de la Concha auditorium of the Instituto Tecnológico de Santo Domingo (INTEC), under the coordination of Area of Economy and BusinessThe objective was to educate students who will be future employees or employers and people interested in the subject about the Dominican Pension System.
For an hour and a half, the expert held a pleasant conversation with an audience eager for information on how to achieve the 360 quotes necessary for a old-age pension, how to access a pension for disability or by SOBREVIVÊNCIA and what is best for the employee: a scheduled withdrawal or a annuity.
When making a historical review of the Pension System in the country, Lora stated that the 87-01 law, promulgated in May 2001, has been the most consensual to date because Social Security funds are used to develop and generate jobs, infrastructure and improve the quality of Stock market.
He stressed that the Heritage of Pension Funds It amounts to RD $ 436,930 million which represent 14.5% of the Gross Domestic Product (GDP), distributed as follows: Multiple Banks have 20.2%; the Central Bank 45.7%; Savings and Loans Associations 2.5%; the Savings and Credit Banks 0.3%; the National Bank of Imports (BANDEX) 0.1%; debt securities of private companies 3.6%; the Ministry of Finance 27.3%; multilateral organizations 0.1% and investment funds 0.2%.
Voluntary contributions
The SIPEN Legal Consultant recommended that students, once they enter Social Security, do voluntary contributions for increase the amount of your account and improve the replacement rate, that is, the percentage of wages that would be received at the time of retirement.
He specified that these contributions are not quantified as purposes of the 360 regulatory contributions necessary to be able to retire. He indicated that one of the objectives for the SIPEN is that they allow the taxpayers use their voluntary contributions before retirement, either to study masters, buy first home and other purposes.