Dominican Republic Pensions Superintendency outlines draft pension reform proposals including a 15 year minimum pension threshold and 15% contribution rate

The Dominican Republic Pensions Superintendency published comments by Superintendent Francisco A. Torres from a television interview outlining draft amendments to Social Security Law 87-01 that are being assessed with the World Bank, the Inter-American Conference on Social Security and the Inter-American Development Bank. The proposals focus on widening access to the guaranteed minimum pension, increasing mandatory pension contributions and using complementary pension plans to extend coverage to self-employed and variable-income workers. Torres said the draft would temporarily lower the contribution period required for a guaranteed minimum pension from 25 years to 15 years, with the benefit adjusted for inflation and paid for life. It would also raise the combined employee and employer contribution rate from 9.97% to 15% of monthly salary over eight years, with annual increases of less than 1%. Complementary pension plans would carry tax incentives and allow early withdrawals for a first home, children's education or medical emergencies. He also said the proposal reflects average longevity of 30 years after age 60 and would seek to make pension accumulations last 20 further years after age 60, backed by insurance for contingencies. The draft update remains under discussion among different sectors and has not been finalized. Torres said any submission to Congress would be for the executive branch to decide.