In an interview on Movimiento 360, the Dominican Republic Pensions Superintendency's superintendent, Francisco A. Torres, outlined the direction he sees for pension systems globally and in the Dominican Republic, describing a mixed model that guarantees a basic pension floor while encouraging additional saving through complementary pension plans. He also presented the Dominican Pension System as an individual capitalization system that already includes a basic pension benefit for people with 25 years of contributions. Torres said more than 70% of pension systems worldwide use individual capitalization as their main pillar. On system security, he said the Dominican Pension System has not been at risk during its 24 years of existence because of continuous supervision and because accounts are individual and non-attachable. He also acknowledged that higher contributions are needed, citing weak contribution density, with affiliates contributing on average only 40% of the time, and warned that without better contribution patterns and higher savings the system will deliver lower pensions than expected.
Pensions Superintendency (SIPEN) 2026-05-11
Dominican Republic Pensions Superintendency superintendent outlines pension floor plus complementary savings model and says higher contributions are needed
The Dominican Republic Pensions Superintendency’s superintendent, Francisco A. Torres, outlined a preferred mixed pension model combining a guaranteed basic pension floor with incentives for additional saving through complementary plans. He noted that the Dominican system is an individual capitalization scheme providing a basic benefit after 25 years of contributions, highlighted that over 70% of global pension systems use individual capitalization as their main pillar, and stressed the system’s security while warning that weak contribution density and the need for higher contributions risk lower-than-expected pensions.