El Salvador approves technical standards

Tuesday, September 4, 2018

San Salvador, August 31, 2018

(Machine translation)

Start your 15 day free trial now!


Already a subscriber? Please, login

The Standards Committee of the Central Reserve Bank , in its capacity as regulator of the financial system, approved, in Session No. CN-08/2018 dated August 31, 2018, the "Technical Norms on Components of Financing of Benefits," Basic Regulatory Salaries and Years of Contribution "(NSP-11), reported the Central Bank.

The purpose of these Rules is to establish the procedures to be carried out by the Pension Fund Administrators (AFP), for the calculation and determination of the components that will finance old-age, common disability and survivorship pensions, such as the Certificate of Transfer and Certificate. of Complementary Transfer, the Complementary Capital, the accumulated balance in the Social Fund for Housing, as well as the calculation of the Basic Regulatory Salaries and the years of contribution to determine the benefit or benefit to which the affiliate or beneficiary can access.

Additionally, these Rules set forth the corresponding components and parameters for the financing of the benefits set forth in the Pension Savings System Law, which are added to the balance that the member has accumulated in his Individual Pension Savings Account (CIAP).

Among the parameters regulated in these Rules are the time quoted by the member which entitles him to enjoy the benefit corresponding to an old-age pension, common disability and survival or the return of balance of the CIAP and the other other parameter is the Salary Basic Regulator which is determined as the average of the Base Income over which it has quoted and multiplied by the percentage of pension results in the amount of pension, disability or survival, as the case may be.

The components include the Transfer Certificate that constitutes a monetary recognition for the time quoted in the SPP that will be paid to the CIAP, from those affiliates who made at least 12 contributions in the Public Pension System (SPP) and the entry into force. of the Pension Savings System (SAP) decided to move to the latter; additionally, for those affiliates that have contributed to the Social Fund for Housing and before the occurrence of an event that generates the right to benefit, said funds will be transferred to the CIAP of the affiliate.

Likewise, the provisions for the calculation of supplementary capital are dictated, which is an additional contribution financed by disability pensions in the second opinion or of survival caused by a non-pensioned member who complies with the requirements.

As part of the regulatory process, these Rules were put in consultation with the industry and the Superintendency of the Financial System, who in a timely manner, provided their valuable comments, which were discussed and incorporated taking into consideration the current legislation, allowing the Project to integrate aspects relevant to ensure the proper performance of the AFPs.

The aforementioned Standards can be consulted in Word and PDF versions in the new space on Financial Regulation of our website, in the section "Financial System Rules", which you can access through the following link: http: //www.bcr / regulations /