In a podcast interview, Pensions Superintendent Francisco A. Torres reviewed the Dominican pension system and the reform under discussion, reiterating that its central objective is to reduce the risk that retirees outlive their savings. The proposal would temporarily lower the 25-year contribution threshold for a Solidarity Fund-backed, inflation-adjusted minimum pension to 15 years, bringing about 2.2 million more people within the guarantee. The threshold would then increase by one year every two years, returning to 25 years over a 20-year period. Torres clarified that retirement at age 60 is not mandatory and that the target remains 360 monthly contributions over 30 years. He encouraged voluntary contributions and complementary pension plans, which grow tax-free and permit withdrawals for a first home, education or high-cost medical expenses without affecting the mandatory individual account. He also reported a 23-year average nominal return of 11% to 12%, with more than 5% in real terms, while investment in the real economy has risen from less than 8% to about 20% of the portfolio.
Dominican Republic's Pensions Superintendency reviews reform to extend lifetime pension guarantee to about 2.2 million affiliates
In a podcast interview, Pensions Superintendent Francisco A. Torres reviewed a reform proposal that would temporarily cut the contribution threshold for an inflation-adjusted lifetime minimum pension from 25 years to 15. The measure would extend the guarantee to about 2.2 million more people, before the threshold gradually returns to 25 years over 20 years. Torres also emphasized voluntary pension saving and greater investment diversification.