Reformed Law Of Trust Pension Obligations.

Original Language Title: REFÓRMASE LA LEY DEL FIDEICOMISO DE OBLIGACIONES PREVISIONALES.

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Read the untranslated law here: http://www.asamblea.gob.sv/eparlamento/indice-legislativo/buscador-de-documentos-legislativos/reformase-la-ley-del-fideicomiso-de-obligaciones-previsionales/archivo_documento_legislativo



1 DECREE No. 287

THE LEGISLATURE OF THE REPUBLIC OF EL SALVADOR, CONSIDERING
:
I.- by Legislative Decree No. 98, dated September 7, 2006, published in the Official Journal No. 171, No. 372 Volume 14 of the same year, was issued
Trust Law pension obligations.
II.- in that law that regulated Investment Certificates Previsionales
accrue an interest rate equal to the London Interbank Offered Rate hundred eighty days (180 days LIBOR) interest.
III.- That the Constitutional Chamber of the Supreme Court, in a ruling on December 23, 2014, in the processes of unconstitutionality 42-2012, 61-2013 and 62-2013 declared unconstitutional the provisions
of that Act in which the use of LIBOR 180 days, the negative impact on the level of profitability obtained savings of contributors to the Pension savings System was established.
IV.- That therefore adjustments should be made to current regulations in order that future investment of pension funds to obtain adequate return, in safety, liquidity and risk diversification, without neglecting
welfare contributors and retirees Public Pension System, and on the other hand, considering the financial capacity of the state and therefore can assume commitments and fulfill.
THEREFORE,
in use of his constitutional powers and initiative of the deputies Guadalupe Lorena Peña Mendoza, Rolando Mata Fuentes, Rodolfo Antonio Parker Soto, Mario Antonio Ponce Lopez, Antonio Vasquez Guadalupe Martinez, Rosa Armida Barrera, Jesus Grande Esmeralda
Cristina Lopez Portillo Juan Carlos Mendoza, Kury Ramón González, and José Vidal Carrillo.
DECREES the following:
AMENDMENTS TO THE LAW OF TRUST PENSION OBLIGATIONS
Art. 1. the following should be incorporated literal c) Article 12 as follows:
"c) The interest rate will accrue will be equivalent to the average of the last five years the interest rate of deposits to 360 days, published by the Central Bank at the end of the month preceding the issue, plus a spread of 0.25%. The rate should be located in a range between a minimum of 3.5% and a maximum of

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5.5%. This range shall be reviewed every two years, depending on the evolution of the deposit rate, respecting the balance between the profitability of pension funds
of contributors and the ability to pay the state. "
Art . 2. reformed the current paragraph 4 of Article 14 as follows:
An interest rate equal to the average of the past five years the interest rate of deposits to 360 days, published by the Central Bank Reserve at the end of the month preceding the issue
, plus a spread of 0.25%. The rate should be located in a range between a minimum of 3.5% and a maximum of 5.5%. This range shall be reviewed every two years, depending on the evolution of the deposit rate, respecting the balance between the profitability of pension funds
contributors and the ability to pay the state.
Art. 3. TRANSIENT. The interest rate February 2016 to February 2019, will be as follows:
a) From February 2016 to January 2017: 3.50%;
B) From February 2017 to January 2018: 3.70%;
C) From February 2018 to January 2019: 3.90%; and
d) From February 2019 onwards will apply the provisions of article one of this
Decree.
Art. 4. This Decree shall enter into force eight days after its publication in the Official Journal.
GIVEN IN THE BLUE ROOM OF THE LEGISLATIVE PALACE: San Salvador, on the twenty day of February in the year two thousand and sixteen.
LORENA GUADALUPE MENDOZA PEÑA, PRESIDENT
.
GUILLERMO ANTONIO NAVARRETE GALLEGOS Ana Vilma Albanez de Escobar,
FIRST VICE. SECOND VICE PRESIDENT.
ORANTES SERAFIN JOSE RODRIGUEZ, NORMAN NOEL GONZALEZ Quijano,
THIRD VICE. FOURTH VICE.
SANTIAGO FLORES ALFARO, FIFTH VICE.

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GUILLERMO FRANCISCO MATA BENNETT, DAVID ERNESTO MOLINA REYES, First Secretary. Second Secretary.
MARIO ALBERTO GUERRERO TENORIO, REYNALDO ANTONIO LOPEZ Cardoza Third Secretary. Fourth secretary.
JACKELINE AVALOS NOEMI RIVERA, JORGE ALBERTO ESCOBAR BERNAL, QUINTA Secretariat. SIXTH SECRETARY.
ABILIO Orestes MENJIVAR RODRIGUEZ, JOSE FRANCISCO LOPEZ MERINO, seventh Secretary. EIGHTH SECRETARY.
PRESIDENTIAL HOUSE: San Salvador, on the seventeenth day of March, two thousand
sixteen.
Published, Salvador Sanchez Ceren,
President of the Republic.

Juan Ramon Caceres Carlos Enrique Chavez, Minister of Finance.

OJ No. 54 Volume No. 410 Date: 17 March 2016
SP / Adar 04/18/2016
LEGISLATIVE INDEX