The Dominican Republic's Pensions Superintendency (SIPEN) has published remarks by superintendent Francisco A. Torres from a radio interview setting out the main options under discussion for changes to the social security law. The discussion centred on a guaranteed minimum pension for workers who do not meet the current 25-year contribution requirement, a phased increase in mandatory pension contributions, and further diversification of pension fund investments. Torres said the recommendations draw on assessments of reform proposals using an International Labour Organization actuarial model, which indicates that many workers would not complete 25 years of contributions by age 60 because they contribute on average only four out of every ten months. Among the proposals under analysis, the minimum pension would be adjusted for inflation every two years. The current contribution rate is 9.97% of salary, split between 2.87% from employees and 7.10% from employers, and the proposal being examined would raise contributions gradually over eight years. Torres said that, together with the guaranteed minimum pension, this could increase pensions by 25% to 50%. On asset allocation, he said exposure to Treasury and Central Bank bonds, which he put at about 60%, has fallen over the past five years as investment in private sector activities, particularly tourism and industry, has increased. Investments by Pension Fund Administrators require approval from the Risk Rating and Investment Limits Commission chaired by SIPEN. He also highlighted complementary pension plans for self-employed, freelance and variable-income workers, with tax benefits and a proposal to allow their use for a first home, children's education or medical emergencies without affecting mandatory contributions.

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