In an interview on the Hoy Mismo programme, Dominican Republic's Pensions Superintendency (SIPEN) superintendent Francisco A. Torres set out his assessment of the current state of the Dominican pension system, highlighting structural challenges and areas for improvement to make the system more inclusive and sustainable in light of changes in the labour market. Torres said the system is primarily designed for employees in dependent employment, where employers contribute most of the individual savings, which disadvantages informal and self-employed workers who lack employer support. He also stated that affiliates’ funds are fully protected because individual accounts are segregated from the assets of pension fund administrators (AFPs), and pointed to strong investment performance, citing a historical return of 11% (5% in real terms), above the regional average. Torres urged stronger retirement savings habits, particularly among younger and independent workers, noting life expectancy now exceeds 73 years.
Pensions Superintendency (SIPEN) 2025-07-30
Dominican Republic's Pensions Superintendency flags pension system gaps for informal workers and cites 11% historical investment returns
Francisco A. Torres, superintendent of the Dominican Republic's Pensions Superintendency (SIPEN), highlighted structural challenges in the pension system, emphasizing inclusivity and sustainability amid labor market changes. He noted the system's bias towards dependent employees, disadvantaging informal and self-employed workers, and stressed the importance of stronger retirement savings habits. Torres assured that affiliates' funds are protected and reported a historical return of 11% (5% in real terms), surpassing the regional average.