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Money to be returned to affiliates who entered the pension system late

SANTO DOMINGO. The National Council of Social Security (CNSS) established an emergency rule in order to return to contributors their accumulated payments to the Old Age, Disability and Survivors Insurance because of late entry or terminal illness.

Resolution 350 – 02 will benefit 425,321 affiliates that entered the system at 45 years of age or older, according to statistics from the Superintendent of Pensions (Sipen) from the month of June.

The measure by the CNSS establishes that the affiliates that have entered late into the System of Individual Capitalization of the Contributive scheme, and that are now 60 years of age and are unemployed, can opt for the return of their contributions, plus the interest, in a single payment, or they can accept an old age pension, “of lifetime income or programmed retirement, whose amount should never be less than the minimum salary,” in case the accumulated amount can provide this.

Workers that began to contribute late in the process but that are receiving pensions from other systems “can receive a single payment of all of their contributions,” says the CNSS resolution.

The resolution also says that they can decide, exceptionally, regarding those who are suffering from a terminal illness – evaluated and qualified by the Medical Commissions and certified by the Disability Technical Commission -, and if they are unemployed and have no other benefits from the Old Age, Disability and Survivors Insurance.

The Superintendent of Pensions, Joaquin Geronimo, said to Diario Libre that now it is up to this entity “to make the corresponding adjustments in the regulations that establish this procedure (the return of money)” because the resolutions of the CNSS are of obligatory compliance. The regulations should be ready within the next 60 days.

In the meantime, the president of the National Council of Syndicate Unity, Rafael -Pepe -Abreu, appreciated the decision because the majority of the persons of late entry into the system will never achieve a pension. Nonetheless, he alerted reporters that if these persons do not have health insurance they should find them alternatives because the money returned to them could run out in the medical issues of the old. Abreu recalled to the Pension Fund Administrators (AFP) that this is an exception and in the future they should grant the pensions and not return the money.

The Law

According to Law 87 – 01, which creates the Dominican System of Social Security, affiliates older than 60 years can opt for an old age pension if they have contributed for a minimum of 360 months.

Paragraph II of article 39 of the legislation establishes that when the affiliates that enter the system at 45 years of age or more cannot reach the minimum pension because of the limited time that they are contributing, the Dominican state will contribute the resources, taken from different social programs, in order to create a special fund that will increase the amount to be received.

The Law was published in 2001, but it was in July 2003 when contributions for pensions began.

Rafael-Pepe-Abreu, Pres. of CNUS

“If a person does not have health insurance and is a person of a certain age where the maladies are greater, when you come to realize it (….) the little amount of money is going to run out.”

Joaquin Geronimo, Superintendent of Pensions

“We have to comply with what the Council says and that is what we will do. The Council has the authority derived from the Law to deal with everything that the Law this not establish.”

Source: DiarioLibre

Category: DR News |

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Last updated March 24, 2017 at 12:37 AM
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