Dominican Republic's Pensions Superintendency, through remarks by Superintendent Francisco A. Torres in a media interview, outlined possible amendments to Law 87-01 governing the social security system. The draft under discussion would reduce the contribution period required for a guaranteed minimum pension from 25 years to 15 years, while preserving a lifetime benefit whose floor would be adjusted for inflation. It would keep the retirement age at 60 for current system affiliates and raise it gradually only for people born from 2008 onward. Torres said the proposals were assessed using an actuarial model from the International Labour Organization and are intended to expand lifetime pension coverage to more than 2 million Dominicans. The main rationale is the Dominican labor market's high movement in and out of formal employment, which makes long contribution histories difficult to achieve. Torres said only about 20% of current affiliates are expected to reach 300 or more contributions, while about 80% are not. To improve benefit levels, the draft would increase the contribution rate gradually from 9.97% to 15.25% over eight years, with estimated pension gains of 25% to 50%. A deferred life annuity mechanism would use accumulated savings to cover benefits until age 80, after which a collective insurance arrangement would apply. He also noted that the individual capitalization system has accumulated DOP 1.6 trillion, around 20% of gross domestic product. Other elements still in the draft include allowing international transfers of pension savings to an individual capitalization account in another country of residence. Torres also highlighted DOP 62 billion in refunds tied to people who entered the system at age 44 or older and receive their savings back at age 60 without a pension, warned about the risk of exhausting savings through early retirement at 55, and described complementary voluntary pension accounts that carry tax benefits and could be used early for a first home, higher education or high-cost health expenses. He said the bill remains a live draft discussed with business and labor groups, with only limited recent changes.
Pensions Superintendency (SIPEN)2026-07-17
Dominican Republic's Pensions Superintendency outlines draft pension law changes, lifetime minimum pension after 15 years and higher contributions
Dominican Republic's Pensions Superintendency used an interview to outline draft changes to the social security pension law, including an inflation-adjusted lifetime minimum pension after 15 years of contributions instead of 25. The draft would raise the contribution rate from 9.97% to 15.25% over eight years, keep retirement at 60 for current affiliates and gradually increase it only for people born from 2008. Other proposals include cross-border transfers of pension savings, and the text remains under discussion with business and labor groups.