In a television interview, the Dominican Republic's Pensions Superintendency outlined proposals under discussion for updating the Social Security Law and clarified that its role in the reform is technical and evaluative rather than political. The main measures described were a lifetime minimum pension indexed to inflation for members with at least 15 years of contributions instead of the current 25 years, a gradual increase in the contribution rate to improve benefit levels, and continued health coverage for retirees through the basic health plan. The superintendent said the reform process began in 2021 through dialogue in the Economic and Social Council, with SIPEN joining around 2023 and using an International Labour Organization actuarial model to assess sustainability. He said the proposals respond in part to contribution gaps caused by workers moving between formal and informal employment in a system with 5.6 million members, of whom 2.3 million are currently contributing. Financing under discussion would raise the contribution rate from 9.97% to 15.25% over 10 years while keeping the 70% employer and 30% employee split. He also said the draft would not change the retirement age of 60 for current members and would limit the tripartite veto to issues tied to financing and system sustainability. On fund oversight, the superintendent said SIPEN supervises, regulates and monitors pension assets but does not manage them directly. He put total pension fund assets at DOP 1.6 trillion, with about 60% invested in public sector instruments and 20% in private sector investment funds, and said investment decisions are assessed by the Risk Rating and Investment Limits Classification Commission. The proposal remains in the consultation phase, with discussions continuing with the business sector and support from the World Bank and the Inter-American Conference on Social Security as authorities work to build consensus.
Pensions Superintendency (SIPEN)2026-06-26
Dominican Republic's Pensions Superintendency outlines pension reform proposals including a 15 year minimum pension threshold and higher contribution rates
In an interview, the Dominican Republic's Pensions Superintendency outlined pension reform proposals under discussion, including a lifetime minimum pension indexed to inflation for members with at least 15 years of contributions and a gradual rise in contribution rates from 9.97% to 15.25% over 10 years. The superintendent said the retirement age for current members would remain 60 and retirees could keep their basic health coverage. He also stressed that SIPEN supervises pension funds but does not manage the DOP 1.6 trillion in assets directly.