Pension Funds Administrators
in Central America
Wednesday, May 2, 2012
The Salvadoran Association of Pension Funds has asked for changes in legislation to be made firm in order to increase the profitability of the savings of workers.
The Salvadoran Association of Pension Funds (Asafondos) asked President Mauricio Funes to keep his promise to carry out a second part of reforms to the pension system.
Monday, April 30, 2012
With different modus operandi, the governments of Costa Rica and El Salvador are degrading the future value of workers' savings deposited with Pension Operators.
EDITORIAL
In the case of Costa Rica it is the voracity with which the Treasury has to go to the stock market in order to raise money to pay for increased spending, especially on staff salaries, leading to low yields on government bonds, which in an obligatory manner make up the portfolio of the Supplementary Pension Operators (PCO), assets which are supposed to safeguard the future value of pensions.
Tuesday, April 24, 2012
The government of Costa Rica is promoting a legal reform that would transfer the cost of financial supervision to banking institutions, insurance companies and pension operators.
The legal amendment was included in the Bill for the Efficient Management of Public Finances already sent to the Legislature.
Tuesday, April 24, 2012
While supportive of the proposed legal reforms to improve the profitability of pensions, the AFP has requested a minimum interest rate of 4% for the CIP.
The two Pension Fund Administrators (AFP in Spanish) are opposed to a limit on interest payments , because it would affect the benefits for contributors at the expense of protecting state spending.
Thursday, April 19, 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.
Friday, April 13, 2012
A new reform is being prepared containing the rules governing the activities of Pension Fund Administrators, seeking to improve the profitability of the contributions for all contributors.
The Salvadoran government is preparing a second reform of the law on Pension Fund Administrators (AFP), and other possible changes.
Monday, April 2, 2012
The reform voted in in El Salvador raises the ceiling rate on the amount of government funds that can be used to pay Social Security pensions to 45% and reduces commissions for the AFPs to 2.2%.
The Legislature increased from 30 to 45 percent the ceiling on which government funds can be used to pay for INPEP and ISSS pensions, and decreased from 2.7 to 2.2 percent commissions to the AFP on Thursday when approving reforms to the Law on Pension Savings System (SAP in Spanish).
Thursday, March 29, 2012
It is expected that the Law of Pension Savings System will soon be reformed, reducing the commissions earned by AFPs from 2.7% to 2.2%.
A majority of members of the Finance Committee of the Salvadoran Legislative Assembly have endorsed amendments to the Law on the Pension Savings System. The main changes include a reduction of the commissions earned by Pension Fund Administrators (AFP in Spanish) from 2.7% to 2.2%, and allowing up to 45% of pension savings to be invested in Pension Investment Certificates (IPC in Spanish) issued by the state to pay for pensions under the previous system.
Friday, March 23, 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.
Monday, March 12, 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.
Monday, February 27, 2012
Carteras de inversión similares hacen que las diferencias de los rendimientos de los distintos planes de pensión complementaria sean mínimas.
Los rendimientos de los planes de pensión complementaria en Costa Rica muestran diferencias mínimas y están convergiendo en un rango de 4,29% y 5,25%.
Friday, February 17, 2012
Five pension regulations remain paralyzed due to the lack of a workers representative from a State bank in the National Council of the Financial System Supervisor.
For now, the supervisor is limited to analyzing reports and administrative matters, reported Nacion.com.
Thursday, January 5, 2012
The companies Consorcio Aliado and Progreso have been awarded the tender to manage for 5 years investments for the Capital Savings and Pensions of Public Employees (SIACAP in Spanish).
The contract was disputed with the consortium Multibank / Multisecurities and HSBC.
Tuesday, December 20, 2011
The Superintendency of Pensions is studying changing the rules for the transfer of members between companies, to reduce administrative costs.
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%.
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