Dominican Republic's Pensions Superintendency published an explainer on how individual capitalization accounts build retirement savings, stressing that investment performance is the main contributor to accumulated balances and that pension fund assets are increasingly being channelled to private-sector projects. It reported a 10% return for pension funds in 2024 alongside a 1% annual commission charged by pension fund administrators to manage those assets. For every 100 pesos accumulated in an affiliate’s account, around 56 pesos come from investment returns, 31 pesos from employer contributions equal to 7.1% of salary, and 13 pesos from worker contributions equal to 2.87% of salary. Pension fund investment in the private sector has grown by an average 22.9% per year over the last three years, compared with 9% growth in public-sector investment, with exposures including investment funds, corporate bonds and publicly offered shares, and with a focus on tourism, energy and free trade zones. The note also highlighted system challenges tied to labour market informality of around 50% and an average contribution density of 41%, noting that achieving 360 monthly contributions, equivalent to 30 years, supports pension adequacy, against a contribution rate of 9.97% compared with an average 18.4% in Organisation for Economic Co-operation and Development countries. On fees, Law 13-20 sets a sliding administration commission that declines as assets grow, from up to 1.20% in 2020 to 0.75% by 2029. The publication also referenced recent changes affecting benefit access, including the elimination of inheritance tax on accumulated balances for beneficiaries, a reduction to age 44 for refunds linked to late entry, and the removal of barriers to accessing funds in cases of terminal illness.

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