Law Reform To The Social Security Law And The Law Of The Bank Of The Ecuadorian Institute Of Social Security For The Administration Of The Funds Complementary Social Security Shut Down

Original Language Title: Ley Reformatoria a la Ley de Seguridad Social y a la Ley del Banco del Instituto Ecuatoriano de Seguridad Social para la Administración de los Fondos Complementarios Previsionales Cerrados

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Read the untranslated law here: http://www.asambleanacional.gob.ec/es/system/files/ro_ley_ref_ley_ss_y_biess_fondos_previsionales_cerrados_ro_suplemento_379_del_20-11-2014.pdf



Whereas: that, the article 2 of it statement American of rights human devotes it equality of rights and duties before the law, in concordance with it stipulated in the article 11 numeral 2 of the Constitution of the Republic in which is determines that all them people shall enjoy of them same rights, duties and opportunities without distinction of any nature; That, the article 66 paragraph 15 of the standard Fundamental, enshrines the right to develop activities economic individual or collectively as with them principles of solidarity and responsibility social;

That article 226 of the Constitution of the Republic establishes the principle of legality whereby the institutions of the State, their body, dependencies, and public servants and persons acting under a State authority, exercise only powers and powers assigned to them by the Constitution and the law; That article 341 of the Constitution determines that the State will generate conditions for the comprehensive protection of people throughout their lives and ensure the constitutionally recognized rights; That, according to article 367 of the Constitution: "EI social security system is public and universal, it will not be privatized and will serve the contingent needs of the population." The protection of contingencies will be effective through the compulsory universal insurance and their special regimes. The system will be guided by the principles of the national system of social equity and inclusion and mandatory, sufficiency, integration, solidarity and subsidiarity"; That, according to article 368 of the Constitution: "EI social security system shall include public entities, standards, policies, resources, yprestaciones of social security services and will operate on the basis of criteria of sustainability, efficiency, speed and transparency." State will regulate, regulate and control activities related to social security"; That, in the article 370 of the Norma Suprema determines that the Ecuadorian Institute of Social Security (IESS), regulated by law, autonomous entity will be responsible for the provision of the contingencies of the universal insurance to its members; That, according to the article 372 of the Constitution: "them funds and reserves of the safe universal compulsory will be own and different of them of the Treasury, and will serve to meet of form adequate them purposes of its creation and their functions." No institution of the State shall intervene or have their funds and reserves or undermine its heritage. Interim public funds and investments will be channeled through a financial institution owned by the Ecuadorian Social Security Institute; their management is subject to the principles of security, profitability, solvency, efficiency and control of the competent authority"; That, through resolution CD-284 on October 21, 2009, the Board of Directors of IESS, issued the provisions relating to the transfer of funds accumulated in individual accounts for additional severance of the IESS to the decorative items funds ntarios social security closed; and, in exercise of the powers set out in paragraph 6 of article 120 of the Constitution of the Republic, Supplement - Registro Oficial Nº 379 - Thursday 20 November 2014 - 3 issue: the following law reform to law of security SOCIAL and to law of the Bank of the Institute Ecuadorian of security SOCIAL to the administration of the funds complementary social security shut down. Article 1.-the Social Security Act, carried out the following reforms: 1. in article 220, included after the second paragraph, the following: "funds complementary closed pension who at its source or in any form have received State support, will have to be administered by the Institute of Ecuadorian Social security through its bank, through individual accounts." Their management is subject to the principles of transparency, solvency, efficiency, safety, profitability and to regulations and controls of the competent bodies. Above mentioned supplementary funds, having the written request of at least half plus one of the total of participants, may ask the Court of audit, maintain their own administration private, prior the concurrent fulfilment of the following conditions: to) demonstrate that contributions to the Fund were made voluntarily. Be sure that each of the venturers authorization shall be verified for the effect. Similarly the background will prove that discounts are hayn performed without coercion to participants or third parties.

b) ensure that resources allocated in individual accounts can be restored to participants at any time; and, c) return the value of the State resources received by the Fund with the respective interests, calculated at the reference lending rate determined by the Central Bank of Ecuador for each year. "."

2. include is the following provisions General, with the following text: "first." -It Board of political and regulation monetary and financial and the Ministry of relations labour, in the field of their competencies, issued them regulations and acts administrative that correspond to ensure them rights acquired by them pensioners of them funds complementary social security closed that handled or managed it retirement employer established in the code of work.

SECOND.-individual accounts of the unit-holders of the funds complementary social security closed that pass to the administration of the Ecuadorian Institute of Social security through its bank, will be personal and independent of which manages the Bank.

Them values constant in them accounts individual before indicated, are of property of them share of conformity with those amounts that determine them audits. "."

3. include a transitional provision, with the following text: "all funds closed supplementary pension, whatever its nature, object or benefits granted within the period of one hundred and eighty days from the entry into force of the Act, must be recorded in accordance with the policies and regulations issued by the Board of policy and regulation monetary yFinanciera, in the scope of their powers.".

Article 2.-on the law of the Bank of the Ecuadorian Institute of Social Security, reform is the following: 1. in article 2, after "Ecuadorian Institute of Social Security;" and before the word "and", add the following text: "funds complementary closed social security;".

2. in article four, after the numeral "4.1.3", add: "4.1.4. Box and treasury services. "." 3. for the following of article 4, add the following article: ' Article 4A.-collection of contributions, fertilizers and payment of benefits.-the collection of the contributions to the funds closed supplementary pension and fertilizers to the credits provided through them, will be made by deduction of wages and salaries to the unit-holders or through other mechanisms that determine the Bank of the Ecuadorian Social Security Institute. " The Bank of the Ecuadorian Social Security Institute shall the payment of benefits d the funds complementary social security closed, including those in retirement or severance pay, when the conditions are met to access the same, constants in the Social Security Act and the regulations. "."

4. in article 7, add at the end a paragraph with the following text: "earnings annually generated by the administration of the funds complementary social security closed, will be distributed proportionally to each individual account according to the accumulated, according to the policies of investment and management having the Bank of the Ecuadorian Social Security Institute.".

5. in article 8, be added after the first paragraph, the following text: 4 - supplement - official record No. 379 - Thursday, November 20, 2014 "in case of permanent absence of delegate affiliates assets or the delegate of retirees, is must summon a new public contest of merits and opposition to the selection of their replacements , in accordance with the law. "."

6. in article 12, replaced the numbers 20 and 21, with the following: "20. Propose to the Executive Council of the Ecuadorian Institute of Social security reform to this law projects; 21 make the necessary adjustments to actuarial studies, for the fulfilment of supplementary retirement benefits or others, who agreed in each of the funds; and, 22. The others that are inherent in their duties."

7. at the fifth General provision, add at the end a paragraph with the following text: "Board policy and monetary regulation and financial, in function of the yields and differentially, will define the value that will receive the Bank of the Ecuadorian Social Security Institute by concept of administration.".


8 after fifth General layout, add the following general provisions with the following text: to) "sixth.-resources of the funds complementary closed pension whose administration assume the Institute of Ecuadorian Social security through your bank, will retain its object and purpose, keeping the management of individual accounts independent and separated from the assets of the Bank of the Ecuadorian Institute of Social Security and the other funds that manage."

When arranged in l code monetary and financial audits to determine the existence of surpluses, these will be allocated to the individual accounts of each Fund, in proportion to the time and the values of contribution by the participants. In addition, when these audits to determine the existence of losses caused by fraud, gross negligence or mild because of its administrators, these will respond even with their personal wealth. For the purposes of this provision, shall be understood as administrators: Chief Executive, general manager, legal representative, members of boards of Directors, Audit Committee, risk Committee, investment Committee, benefits Committee or those who have exercised such functions. If there are still amounts to cover, these negative values will be distributed among the participants of each Fund in proportion to the time and the values of contribution by the participants.

(b) "SEPTIM to.-resources of the funds complementary closed pension will be destined exclusively for the payment of benefits for which they were constituted.".

(c) "eighth. -The Bank of the Ecuadorian Social Security Institute will adjust its functional organizational structure to ensure the fulfilment of the objective of the law. "."

9 after the ninth transitional provision, add the following transitional provisions with the following text: to) "tenth. -The Bank of the Ecuadorian Institute of Social Security, when he assumes the administration of the resources of the closed supplementary pension funds, will continue raising contributions to the funds and payments appropriations for the participants.

b) tenth first. -For the compliance of it planned in them paragraphs third and fourth of the article 220 of the law of Security Social, the Board of political and regulation monetary and financial, approve the schedule of transfer of them funds complementary social security closed to the Bank of the Institute Ecuadorian of Security Social, proposed by the Superintendence of banks.

The Board of political and regulation monetary and financial will issue the regulation respective for those funds that comply with them conditions planned in this law for keep his own administration.

Watchdog, immediately completed audits in reference, put in knowledge of Board policy Yregulacion monetary and finance, a report with recommendations on the audits to the funds. The Superintendency of banks from the home of them audits until the transfer effective of them resources of them funds complementary social security closed, shall appoint an administrator, to disfunction them resources existing in each Fund. To promote the transparency of the process of audit and transfer of the administration of them resources of them funds complementary social security closed, is shall designate an observer by each one of them, of conformity with it established in the law organic of participation citizen.

(c) tenth second.-the Board of political and regulation monetary and financial dictate them regulations corresponding to the management of those funds complementary social security closed.

The Ecuadorian Institute of Social security through its bank will ensure continuity and services, benefits and profits.

Supplement - Registro Oficial Nº 379 - Thursday 20 November 2014 - 5 d) tenth third.-workers who are working in a relationship of dependency with each of the funds which pass to the administration of the Ecuadorian Institute of Social security through its bank, to the date of issue of this law, shall retain the rights that the law grants them , according to the employer responsible for each Fund. "."

Article 3.-This law shall enter into force following its publication in the official register. Given and signed, at the headquarters of the National Assembly located in the Metropolitan District of Quito, Pichincha province, eleven days after the month of November of two thousand fourteen.



(f.) GABRIELA RIVADENEIRA BURBANO President f.) DRA. Libya RIVAS ORDÓÑEZ Secretary General the Government autonomous DESCENTRALIZ ADO MUNICIPAL EL PANGUI considering: That is Faculty of the Government autonomous decentralized Municipal de El Pangui proceed to zoning, and establish rules for land use system and others related according to the needs of the cantonal development within the urban areas of the Canton. That, it is necessary to regulate the growth of the cantonal head to assist with their development planning and avoid urban land speculation. In use of the powers provided for in the code organic of organization Territorial, autonomy and decentralization.

Issue: The following ORDENANZ to MUNICIPAL planning, construction, ADORNMENT, EMBELLISHMENT and the PLAN of use and occupation of the soil urban (PUOS) in the header CANTONAL and centers of CANTON EL PANGUI section I considerations general article 1 create the Ornato and manufactures Board that will be the body responsible for regulating the application of this Ordinance, it shall consist in the following way : Director of planning who will chair it, Councillor for planning and budget, Municipal Commissioner and a Secretary appointed by the Board, which will meet at least every fortnight and will answer for their actions before the Council of the Government autonomous decentralized Municipal de El Pangui. In addition will have someone at your disposal, who will take the post of Inspector of the ornamental Board and its functions will be strict compliance with the provisions issued by the Board of ornament and factory. The use and occupation of the soil (PUOS) Plan is the instrument of: article 2 definition: the use and occupation of the soil (PUOS) Plan is the instrument of territorial planning, setting parameters, regulations and specific rules for the use, occupation, building and empowerment of the soil in the cantonal head and populated centers. Article 3 content: this Ordinance complements the proposal of territorial development established in the Plan of development and Territorial Planning and organization and determines the normative character of the use, occupation yedificabilidad from the soil through the definition of coefficients and forms of occupation, the volume and the height of the building, the characteristics of minimums for the empowerment of the ground areas and fronts , categorization, sizing of the system. Article 4 objective: this Ordinance seeks to the improvement of the quality of life of the inhabitants of the Canton, ordering the territorial structure, physical development and the distribution of equipment and activities, respecting the cultural heritage, urban image, morphological characteristics, the natural environment and road connectivity. Article 5 the PUOS instruments: constitute the main instruments of this Ordinance and the following maps: map PUOS 1 (AREA urban of the city of EL PANGUI), map PUOS2 (center town of SAN ROQUE), map PUOS3 (Parish PACHICUTZA header), map PUOS4 (Parish TUNDAYME header), map PUOS5 (GUISMI HEADBOARD, parish) map PUOS6 (town centre of CHUCHUMBLETZA) map PUOS7 (MIASSI-village centre) that refers to the uses of the soil, type of establishment, building height. Article 6 interpretation and application: The interpretation and application of the provisions of this Ordinance in the cases not referred to in this instrument, or where there is controversy, is sole and exclusive authority of the Board of ornament and manufactures, which counted with the original documentation of the Ordinance and the reports of the Directorate of planning and land use.