The Dominican Republic Pensions Superintendency used a media interview to explain the main features of a future amendment to Law 87-01, which created the Dominican Social Security System. Superintendent Francisco Torres said SIPEN has been contributing technical and analytical work to the bill and highlighted three main elements drawn from evaluations based on an actuarial model of the International Labour Organization: a guarantee mechanism for affiliates who do not accumulate enough in their individual accounts to finance lifelong pensions, an increase of 25% to 50% in pension amounts including for current pensioners, and stronger supplementary pension plans that would allow broader use of voluntary savings. Torres said the proposed guarantee fund already exceeds DOP 100 billion and could benefit more than 2 million Dominicans. He added that the guarantee is intended to serve as a floor that would be adjusted for inflation over time. The proposed changes to supplementary plans would let affiliates use voluntary savings for a first home purchase, children's education or medical emergencies, without affecting mandatory pension savings. In the same interview, Torres also addressed pension fund performance and fees. He said that of every DOP 100 accumulated in the system, DOP 50 or more comes from investment returns generated by Pension Fund Administrators, that balances grew by about 8% over the last year, and that administrators' commissions account for less than 1% of total assets under management.
Pensions Superintendency (SIPEN)2026-06-28
Dominican Republic Pensions Superintendency outlines proposed reform to Law 87-01 with guarantee mechanism and 25% to 50% higher pensions
In a media interview, the Dominican Republic Pensions Superintendency outlined a draft reform of Law 87-01 that would create a guarantee mechanism for members with insufficient retirement savings, raise pensions by 25% to 50%, and expand permitted uses of voluntary savings in supplementary plans. SIPEN said the guarantee fund already exceeds DOP 100 billion and could benefit more than 2 million people. Torres also said investment returns account for more than half of accumulated balances and Pension Fund Administrators' commissions are below 1% of assets managed.