Reformed Law Of Trust Pension Obligations.

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

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LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

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DECREE N ° 287

THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,

CONSIDERING:

I.-That by Legislative Decree No. 98 dated September 7, 2006, published in Official Journal No. 171, Volume No. 372 of 14 of the same month and year, was issued

the Law of the Trust of Visionary Obligations.

II.-That in that Law it was regulated that the Visionary Investment Certificates

would earn an interest rate equivalent to the London Interbank Offered Rate of one hundred and eighty days (LIBOR 180 days).

III.-That the Constitutional Chamber of the Supreme Court of Justice, in judgment of December 23, 2014, in the processes of Inconstitutionality 42-2012, 61-2013 and 62-2013, declared the provisions of the aforementioned unconstitutional

Law on the use of the LIBOR rate 180 days, because of the negative impact on the level of profitability that the savings of the contributors to the Pension Savings System obtained.

IV. make adjustments to the current regulations, with the object that the future investment of the pension funds obtain adequate profitability, in terms of security, liquidity and risk diversification,

without neglecting the welfare of the public pension system's contributors and retirees, and, on the other hand, weighing the financial capacity of the State and consequently, the commitments that it can assume and fulfill.

BY TANTO,

in use of its Constitutional faculties and at the initiative of the Deputies and Deputies Lorena Guadalupe Peña Mendoza, Rolando Mata Fuentes, Rodolfo Antonio Parker Soto, Mario Antonio Ponce Lopez, Guadalupe Antonio Vasquez Martinez, Rosa Armida Barrera, Jesus Grande, Cristina Esmeralda

Lopez, Juan Carlos Mendoza Portillo, Ramon Kury Gonzalez, and José Vidal Carrillo.

DECRETA the following:

REFORMS TO THE LAW OF THE TRUST OF THE PRE-VISIONARIES

Art. 1.-Enter the literal (c) into Article 12, as follows:

" (c) The interest rate to be paid shall be equivalent to the average of the last five years of the 360-day deposit interest rate, published by the Bank. Central Reserve at the end of the month before the issue, plus a 0.25% surcharge. The rate must be in a range between a minimum of 3.5% and a maximum of

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5.5%. This range should be reviewed every two years, depending on the evolution of the deposit rate, while respecting the balance between the profitability of the pension funds

of the contributors and the ability to pay the State. "

Art. 2.-Reform the current Article 14 (4) paragraph, as follows:

An interest rate equal to the average of the last five years of the 360-day deposit interest rate, published by the Central Reserve Bank. closing the month before

issue, plus a 0.25% surcharge. The rate must be at a range of between a minimum of 3.5% and a maximum of 5.5%. This range should be reviewed every two years, depending on the evolution of the deposit rate, while respecting the balance between the profitability of the pension funds of the

contributors and the ability to pay the State.

Art. 3.-TRANSITIONAL. The interest rate from February 2016 to February 2019, will be as follows:

a) February 2016 to January 2017: 3.50%;

b) February 2017 to January 2018: 3.70%;

c) February 2018 to January 2019: 3.90%; and,

d) From February 2019 onwards will apply what is foreseen in article one of the present

Decree.

Art. 4.-This Decree will enter into force eight days after its publication in the Official Journal.

GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at the twenty-fifth day of February of the year two thousand sixteen.

LORENA GUADALUPE PEÑA MENDOZA,

PRESIDENT.

GUILLERMO ANTONIO GALLEGOS NAVARRETE, ANA VILMA ALMASEZ DE ESCOBAR,

FIRST VICE PRESIDENT. SECOND VICE-PRESIDENT.

JOSÉ SERAFIN ORANTES RODRÍGUEZ, NORMAN NOEL QUIJANO GONZÁLEZ,

THIRD VICE-PRESIDENT. FOURTH VICE-PRESIDENT.

SANTIAGO FLORES ALFARO, FIFTH VICE PRESIDENT.

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GUILLERMO FRANCISCO MATA BENNETT, DAVID ERNESTO REYES MOLINA, FIRST SECRETARY. SECOND SECRETARY.

MARIO ALBERTO TENORIO GUERRERO, REYNALDO ANTONIO LÓPEZ CARDOZA, THIRD SECRETARY. FOURTH SECRETARY.

JACKELINE NOEMI RIVERA AVALOS, JORGE ALBERTO ESCOBAR BERNAL, FIFTH SECRETARY. SIXTH SECRETARY.

ABILIO ORESTES RODRÍGUEZ MENJÍVAR, JOSÉ FRANCISCO MERINO LÓPEZ, SEVENTH SECRETARY. EIGHTH SECRETARY.

CASA PRESIDENTIAL: San Salvador, at seventeen days of the month of March of the year two thousand

sixteen.

PUBESQUIESE, Salvador Sánchez Cerén,

President of the Republic.

Juan Ramón Carlos Enrique Cáceres Chávez, Minister of Finance.

D. O. N ° 54

Took N ° 410 Date: March 17, 2016

SP/adar 18-04-2016

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