The Dominican Republic's Pensions Superintendency published remarks from Superintendent Francisco A. Torres during an appearance on Movimiento 360, in which he said pension systems are moving toward a mixed model that guarantees a pension floor while encouraging additional saving through supplementary pension plans. In that context, he also said higher contribution levels are needed in the Dominican system because affiliates contribute on average only 40% of the time, warning that without better contribution density and higher savings the system will deliver lower pensions than expected. Torres said the Dominican Pension System already includes a basic income from 25 years of contributions, meaning a person with 25 contribution years will not run out of money in their account. He also said more than 70% of pension systems worldwide use individual capitalization as their main pillar, and described the Dominican system as having remained secure over its 24 years of operation because of continuous supervision and because accounts are individually owned and protected from seizure.
Pensions Superintendency (SIPEN) 2026-05-11
Dominican Republic's Pensions Superintendency outlines mixed pension model and warns low contribution density will lower pensions
The Dominican Republic’s Pensions Superintendency published remarks by Superintendent Francisco A. Torres highlighting a global shift toward mixed pension models that combine a guaranteed pension floor with incentives for supplementary savings, and warning that low contribution density risks lower-than-expected pensions. He noted that the Dominican system already guarantees a basic income after 25 years of contributions, emphasized that over 70% of global systems use individual capitalization as their main pillar, and underscored its 24-year track record of security supported by continuous supervision and individually owned, non-seizable accounts.