The draft regulations were prepared taking into account the inputs and opinions provided by officials of the Central Government, including the heads of the Ministries of Finance, Labor, the Banco Central de Reserva (BCR) and the Superintendencia del Sistema Financiero (SSF).

Legislator Suecy Callejas explained that since last november 25, when the Executive Branch requested the modification of the regulations to benefit all contributors, the Commission worked to present to the legislative plenary a comprehensive bill whose main objectives are to increase pensions by 30% and to have a ceiling of US$3,000; to ensure a dignified retirement, regulate the Pension Administrators (AFP) and prohibit governments from financing the public debt with the savings of contributors.

The bill is expected to be presented to the legislative plenary during the session of december 20.

The bill to be voted on maintains the retirement age: 55 for women and 60 for men. In addition, Salvadorans residing outside El Salvador will be able to voluntarily contribute to the system to receive the benefits of a profitable and secure pension savings.

The new regulations will strengthen the Solidarity Guarantee Account, reduce the commission received by the AFPs to 1% and eliminate VIP pensions, which favored small groups.

The endorsed opinion also contemplates the creation of the ISP, which seeks to return the social security rights to each Salvadoran and which will control compliance with the regulations. The functions of this entity will be complemented by the work of the SSF and the BCR, which will ensure that the savings of contributors are respected.

Translated by: A.M