The meeting discussed proposals to improve Law 87-01 to improve pensions and ensure that pension savings continue to be key to the country’s economy.
The Dominican Association of Pension Fund Administrators (ADAFP) met with the mission of the International Monetary Fund (IMF) that visited the country to discuss the evolution and favorable performance of the individual savings pension system in terms of rights to members, as well as the impact that these savings have for the country at the macroeconomic level, for the financial system and the stock market.
The meeting was attended by Esteban Vesperoni, head of the IMF mission, and Frank Fuentes, Dominican representative before said organization, who were received at the ADAFP by its executive president, Kirsis Jáquez.
Among the topics discussed are the initiatives to modify the social security law that are currently being discussed, highlighting the importance of making adjustments that improve pensions, and continuing to strengthen this important saving, which is key to stability and economic and social development. from the country.
In this sense, Kirsis Jáquez presented to the IMF Mission the proposals of the union that groups the AFPs, for improvements to the law that allow more and better pensions to be granted to affiliated workers and their families in a sustainable way, also strengthening the national savings.
At the meeting, it was highlighted that the pension funds managed by the AFPs exceed RD $ 740 billion, of which more than 50% has been generated by the profitability that the administrators have achieved in favor of their affiliates, a performance that is recognized in its reports by international organizations such as the OECD. As of October 31, 2021, the average profitability of pension funds was 12.29%.
“The management in the administration of the funds has been positive for the affiliates, since their individual accounts have been able to grow thanks to the investment in safe and profitable instruments, which also contributes to stability and economic growth, as well as to the generation of employment in the country, “said the ADAFP executive.
Regarding the benefits granted, it was detailed that as of September 2021, 8,152 disability pensions have been delivered; 11,165 survivor pensions to 25,303 relatives of deceased affiliates; and more than 29,000 old-age and old-age severance pensions. Likewise, the AFPs have delivered more than RD $ 32,789 million to 176,271 affiliates who entered the system late and RD $ 3,623 million as inheritance to relatives of 16,565 deceased affiliates.
At the meeting, the executive president of the ADAFP showed that individually funded pension funds, in addition to their contribution to the stability and growth of the economy, have energized and deepened the stock market through financing and participation in companies and projects in sectors with high economic and social impact, such as energy, tourism and agribusiness.