Monday, 16 January 2023 18:10

Second disbursement of 30% of pensions to be made on february 14

Written by Coralia Cuellar // Evelyn Alas
Second disbursement of 30% of pensions to be made on february 14 Alonso Zuniga// Executive Producer// Photographer

The Integral Law of the Pension System is in force since ecember 30, 2022, which means that all its provisions apply at the beginning of this year.

According to the Instituto Salvadoreño de Pensiones (ISP) informed that on january 13 the deposit for beneficiaries was made, "which reflects the 30% increase". The next deposit will be made on tuesday, february 14.

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The payment of US$23,099,634.19 was made last friday, to 48,251 ISP pensioners.

According to this regulation, old age pensions will have a generalized increase in the proportion mentioned by the Instituto Salvadoreño de Pensionesand will be for life.

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The annual amount of old age pensions increased to US$400 from ISP, UPISSS and AFPS, is US$70,960,805.00, including 12 months of payment and Christmas bonus, for 55,330 pensioners. The minimum pensions established by Law in accordance with Art. 114, first paragraph, letters a) and b), of the (LISP).

Pensiones | Gerencie.com

Those who had withdrawn part of their savings under the previous regulations are no longer obliged to return it in order to access this pension benefit, although the percentage increase will be lower.

680 pensions were reduced to the maximum amount of $3,000.00 established by the LISP, obtaining a monthly savings of $516,436.05 and an annual savings of $6,455,450.63. The total and partial disability pensions were adjusted to the minimum pension established by the Law in accordance with Art. 114, first paragraph, literal b), of the (LISP).

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The annual amount of the 30% increase in old age pensions for SP. UPISSS and AFP is: $231,735,115.00. for a total of 12,213 pensioners.

Survival pensions that have been adjusted to the minimum pension of US$304.17. amount to 1983 beneficiary pensioners, which implies an annual increase of US$2,317,824.50.

Likewise, people who decide to continue working to receive a salary, at the same time as their pension, will have to contribute for such remuneration.

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In addition, the authorities incorporated measures to combat the evasion of labor contributions. By mandate of this integral law, the Social Security and social security savings registry will be unified.

The head of the Ministry of Labor, Rolando Castro, and the head of the Ministry of Finance, José Alejandro Zelaya, have mentioned on different occasions that they plan to implement actions to combat this crime. The Penal Code punishes with imprisonment those who withhold these labor quotas.

Pensiones | Gerencie.com

In order for workers who are still active to have a greater expectation of the benefit to be received, the Government raised the rate of return for investments made with savings to 7%.

The creation of the Instituto Salvadoreño de Pensiones will allow a stricter control over the operations made with the pension fund, so that they are oriented only to the obligations of the system.

 

Translated by: A.M