Saturday, 26 November 2022 04:10

Pension reform will allow salvadorans to no longer return their savings advances

Written by Evelyn Alas

The President of the Republic, Nayib Bukele, informed through his Twitter account that today the reform to the Ley del Sistema de Ahorro para Pensiones (SAP) will be presented to the Legislative Assembly by the minister of Finance, Alejandro Zelaya.

The reform to be made to the Pension Savings System, will consist in that the employer will pay 1% more, the employee will continue paying the same, the Administradoras de Fondos para Pensiones (AFP), will receive less and the profitability of pension savings will increase substantially.

Pensiones |

With this change, there will be a better pension for those who are already retired and for all contributors when they retire.

Those who have withdrawn part of their money will not have to pay it back, they will not pay more than the established amount. Likewise, they will retire at the same age and their pension will increase for those who did not withdraw their advance.

Pensiones |

People belonging to the diaspora will be able to voluntarily contribute to the system to receive the benefits of a profitable, safe and secure pension savings in El Salvador.

In addition, the Instituto Salvadoreño de Pensiones (ISP),  will be created to defend contributors and guarantee that they receive what they are entitled to.

Pensión máxima en Colombia |

The AFPs will now be regulated and supervised; with the pension reform, salvadorans will be able to receive more money during their old age, without paying more, without working more years and without returning their savings.

Translated by: A.M