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Dominican workers’ pension by 2028 would be only 40% of last salary

Santo Domingo.- Dominican Republic’s pension Fund reached a surprising RD$239.6 billion in October 31, or 10.3% of GDP, but the bad news for workers is that on its current profitability, by 2028 it will equal barely 40% of the last salary paid to the worker.

Pension (Sipen) superintendent Joaquin Geronimo on made the warning Wednesday, but noted however that the system has 15 years to adapt, before workers start receiving their retirement pensions, which will be within 15 years, or 2028, according to projections.

The official, speaking in a conference to mark Sipen’s 12th anniversary at the Club Mauricio Baez, in Villa Juana, said the Fund’s return during the last 12 months was 8.79%. he said that if the gain rises 6%, then the pension could soar to 44% of the last wage.

Geronimo said to meet the challenge, the coverage needs to be expanded, from the barely 2.85 million workers to October, and warned that of that figure, only 1,36 million (47%) pay the quota on a regular basis

The evolution of the pensions

In order to receive an old age pension, one has to be 60 years old, and have a minimum of 360 contributions to the system, which is about 30 years. Since the system is still young, they have barely delivered 12 old age pensions. Nevertheless, they have granted 2,960 pensions for disabilities, and 3,824 for survivor’s benefits, which are given to the survivors of contributing workers. Up until now, the Sipen had returned the amount of RD$2.7 billion to workers who have not managed to accumulate the required number of contributions.
Source: DT

Category: DR News |

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Last updated December 2, 2016 at 1:59 PM
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