In an interview with Hecho en RD magazine, Francisco A. Torres, superintendent of the Dominican Republic's Pensions Superintendency (SIPEN), reiterated a proposal to reduce the contribution requirement for a guaranteed minimum pension adjusted for inflation from 25 years to 15. Actuarial modeling indicates that the Solidarity Fund could sustain the lower threshold for 20 years, after which the requirement would return to 25 years to avoid discouraging saving. The measure remains among reform options under evaluation, alongside more flexible complementary savings mechanisms and gradually strengthening retirement savings. Labor informality of 50% disrupts contribution histories, while longer life expectancy requires accumulated savings to cover more years of retirement. Existing complementary pension plans offer independent workers and people paid by foreign employers a way to make voluntary contributions directly to their pension fund administrator by bank transfer, without a local employer acting as intermediary. Diversifying investments remains another priority for improving retirement returns. The share of pension fund investment in the real economy has risen from 23% in 2022 to 36%.
Dominican Republic's Pensions Superintendency revisits proposal to cut minimum pension contribution requirement to 15 years
In a Hecho en RD interview, Dominican Republic Pensions Superintendent Francisco A. Torres reviewed a proposed temporary reduction from 25 years to 15 in contributions needed for a guaranteed minimum pension adjusted for inflation. The lower threshold would apply for 20 years before returning to 25 years. He also highlighted existing complementary pension plans as a route to retirement saving for independent workers and people paid from abroad.