Changes to Pension Operators Costa Rica

The rate of transfer of members between pension operators (OPC) in Costa Rica is the highest in Latin America. In Mexico, Chile, Peru, Panama and Uruguay, the rate is less than 6%, while in Costa Rica it is 12%.

An article in Elfinancierocr.com reported that Edgar Robles, superintendent of pensions, said that "the current system causes the OPC to incur administrative costs in handling movements of its affiliates and funds. Currently, each member of an OPC can move their resources to another entity once every 12 months on a voluntary basis. "

Data from the Superintendency indicates that the average monthly transfer rate is between 15,000 and 20,000 members per month, with funds that are between $2,000 and $6,000 per person.

Source: elfinancierocr.com

More on this topic

Pension Operators Doing Good Business

July 2011

All pension operators in Costa Rica are yielding positive results, with the exception of the state company INS Pensiones, a subsidiary of the National Insurance Institute.

One year ago, authorities modified the fees charged by Complementary Pension Operators (OPC in Spanish) for asset management.

New Proposal for Improving Pension Collections

April 2012

The Salvadoran Association of Pension Fund Administrators has presented proposals to increase collection and maximize pension returns.

Among other proposals, there is a suggestion to rise the interest rate paid by the Government for the certificates that are purchased, in an obligatory fashion, using pension savings, going from an average rate of 1.49% to 4% or more.

Less Commission for Pension Funds

March 2012

The government of El Salvador is promoting a reform to lower the percentage of commission given to the AFP from contributions, from 2.7% to 2.2% and that seeks to improve yields for contributors.

The government of El Salvador has listed a series of reforms to the pension law. One is to reduce the commission received by the AFP from 2.7% to 2.2% for each contribution in order to increase the returns to workers.

Flexiblity in Pension Fund Investments

March 2012

Given the low returns from pension funds in El Salvador, there is discussion on removing the requirements for operators in order to invest in more instruments.

The pension fund administrators (AFP in Spanish) and the government are exploring alternatives for increasing the profitability of the pension savings system.