Key Benefits:
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
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DECREE NO 927.-
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,
CONSIDERING:
I.-That the Pension System currently administered by the Salvadoran Social Security Institute and the National Institute for Pensions of Public Employees has already fulfilled its task;
II. circumstances, the current pension system for current and future generations a
III.-That it is the responsibility of the State to enable the Salvadorans to provide the necessary mechanisms for economic security to deal with the contingencies of invalidity, old age and death;
IV. It is only possible to achieve it with the joint efforts of the State, employers and workers, through a financially sound pension system with adequate economic and social incentives;
V.-What is necessary creating a new pension system that will allow future generations to access pensions worthy and secure;
FOR TANTO,
in use of its constitutional powers and on the initiative of the President of the Republic, through the Ministers of Finance and Labor and Social Security, and of the Deputies Carmen Elena Calderón de Echelon, Juan Duch Martinez, Francisco Flores, Salvador Rosales Aguilar, Juan Miguel Bolanos, José Mauricio Quinteros, Walter Rene Araujo Morales, Alfonso Aristides Alvarenga, Oscar Morales, Rolando Portal, Angel Gabriel Aguirre, Jorge Augusto Diaz, and Gerardo Antonio Suvillaga,
Decrees the following:
SAVINGS SYSTEM LAW FOR PENSION
TITLE I
PENSION SAVINGS SYSTEM
CHAPTER I GENERAL PROVISIONS
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Creation and Object
Art. 1.-Create the Pension Savings System for private, public and municipal workers, which will henceforth be called the System, which will be subject to the regulation, coordination and control of the State, according to the provisions of this Law.
The System comprises all the institutions, rules and procedures, by which the resources to pay the benefits to be recognized to its affiliates will be administered to cover the Common Invalidity, Old Age and Death risks according to this Act.
Features
Art. 2.-The System shall have the following characteristics:
(a) Its members shall be entitled to the granting and payment of old-age, common invalidity and survivor's pensions, as determined in this Law;
b) (a) to be used for capitalisation in the individual pension savings account of each member, for the payment of insurance premiums to cover the total or the proportion corresponding, as the case may be, of the pensions of common invalidity and of survival and payment of the remuneration for the services of managing the accounts and providing the benefits that the Law;
c) Individual pension savings accounts will be administered by the institutions that are empowered for this purpose, which will be called Pension Fund Administrative Institutions and which in the text of this Law will be
The Administrative Institutions by means of this Law are authorized by the State to administer the System and will be subject to the supervision and control of the System through the Superintendence of Pensions;
d) System affiliates will be free to choose and move between Administrative institutions and, in their opportunity, to select the modality of their pension;
e) Individual pension savings accounts will be the exclusive property of each affiliate of the System;
f) Each Institution administrator, will administer a pension fund henceforth the Fund that will be constituted with the set of the individual savings accounts for pensions, and will be separated from the estate of the Administrative Institution;
g) Administrative institutions will have to ensure a minimum return on the pension fund administer;
h) The State shall provide the resources necessary to ensure the payment of minimum pensions, when the capitalization of the individual pension savings accounts
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of affiliates is insufficient, as long as they meet the required conditions for This effect; and
i) System affiliation for private, public and municipal workers is mandatory and irrevocable in accordance with the provisions of this Law.
Taxation
Art. 3.-The System will be audited by the Superintendence of Pensions, according to what is established in its Organic Law and in this Law.
CHAPTER II OF AFFILIATION AND TRANSFER
Definition of Affiliation
Art. 4.-The affiliation is a legal relationship between a natural person and a System Administrator, which originates the rights and obligations that this Law establishes, especially the right to benefits and the obligation to list. It will have effects from the date the membership contract enters into force.
In the first membership contract with an administrative institution, the natural person will be affiliated with the system.
Individual affiliation
Art. 5.-The affiliation to the System will be individual and subsist during the life of the affiliate, whether or not it is in work activity.
Everyone must choose, individually and freely the Administrative Institution to which they wish affiliate by subscribing to a contract and opening an Individual Pension Savings Account.
The Administrative Institutions may not reject the application for membership of any natural person, if appropriate This Law.
In no case shall the affiliate be able to make compulsory or voluntary contributions to more than one Managing Institution.
TO MEET THE SOCIAL SECURITY OBJECTIVES OF THE PENSION SYSTEMS REGULATED IN THIS LAW, THE NATIONAL REGISTRY OF NATURAL PERSONS MUST SHARE WITHOUT ANY COST THEIR DATABASE OF THE UNIQUE IDENTITY DOCUMENTS, WITH THE REGULATORY BODY OF THE PENSION SYSTEMS, FOR WHICH THE NATIONAL REGISTRY OF NATURAL PERSONS, WILL REGULATE THE FORM AND PERIODICITY IN WHICH THIS DATABASE WILL BE SHARED, ENSURING THE CONFIDENTIALITY OF THE THE SAME. THE PENSION SUPERINTENDENCE WILL USE THE INFORMATION FROM THE NATIONAL REGISTRY OF NATURAL PERSONS TO MAKE THE INFORMATION OF THE UNIQUE IDENTITY DOCUMENT COMPATIBLE WITH THE UNIQUE NUMBER
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RETIREMENT, WHERE APPROPRIATE. (7)
Definitions
Art. 6. For the purposes of this Law, the employer shall mean both the employer of the private sector and the institutions of the Central Government, non-business decentralized institutions, municipal authorities and public sector institutions with
They will be considered dependent workers, those with a relationship of labor subordination in both the private and public and municipal sectors.
Every time this Law refers to the independent workers, will be understood to the local Salvadorans who do not know find in relation to labor subordination and all non-resident Salvadorans.
Affiliate Forms
Art. 7.-Membership of the System will be obligatory when a person enters a job in relation to labor subordination. The person must choose an Administrative Institution and sign the respective affiliation contract.
Every employer will be obliged to respect the choice of the Administrative Institution made by the worker. If not, the employer will be subject to the civil and administrative responsibilities arising from this.
If the worker has not chosen the job 30 days after the start of the employment relationship Institution Administrator, your employer will be obliged to affiliate it in which the greatest number of its workers is attached.
Every person with no relation of labor subordination will be affiliated to the System, with the subscription of the membership contract in an Administrative Institution.
Affiliate
Art. 8.-All persons who, at the beginning of the system's operations, enter into employment subordination for the first time, must join the System.
Art. 9.-All Salvadorans domiciled in an activity through which they obtain an income, including the employers of the micro and small enterprise, may be affiliated with the System. They will also be able to join the System, non-resident Salvadorans.
Agricultural and domestic workers will be incorporated into the System according to the conditions and peculiarities of their work. A special Regulation will be issued for membership.
People excluded from the System
Art. 10.-The following people are excluded from the System:
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a) Permanent invalidity pensioners due to common risks, from the Salvadoran Institute of the Social Security and the National Institute of Pensions of Public Employees; and
b) THE CONTRIBUTORS AND PENSIONERS FOR OLD AGE AND INVALIDITY OF THE INSTITUTE OF SOCIAL FORESIGHT OF THE ARMED FORCE. (7)
NOTWITHSTANDING THE FOREGOING AND LITERAL (I) OF ARTICLE 2 OF THIS LAW, THE EX-COWORKERS OF THE PENSION SYSTEM OF THE INSTITUTE OF SOCIAL FORESIGHT OF THE ARMED FORCE, WHO CHOOSE TO RETURN TO IT, ARE EXCLUDED FROM THE PENSION SYSTEM THAT REGULATES THIS LAW, LEAVING FOR THIS SAME FACT, RESCINDED THE AFFILIATION THAT THEY HAVE WITH THE ISSS, INPEP OR WITH SOME INSTITUTION MANAGING PENSION FUNDS, AS LONG AS THEY TAKE SAID OPTION WITHIN A PERIOD OF NOT MORE THAN ONE YEAR, COUNTED FROM THE TIME OF THE PRESENT DECREE. UNDER NO CIRCUMSTANCES MAY THEY BE REINCORPORATED INTO THE SYSTEMS GOVERNED BY THIS LAW. (1)
EX-IPSFA CONTRIBUTORS AFFILIATED WITH THE PENSION SAVINGS SYSTEM WHO TAKE THE OPTION REFERRED TO IN THE PRECEDING PARAGRAPH SHALL BE ENTITLED TO HAVE THEIR INDIVIDUAL ACCOUNT BALANCE RETURNED AND THOSE MEMBERS OF THE ISSS OR INPEP THAT THEY ALSO TAKE SUCH AN OPTION, THEY WILL RETAIN THE RIGHT TO THE ALLOCATION THAT THE LAW ESTABLISHES. A REGULATION WILL REGULATE THIS SITUATION. (1)
Systems Incompatibility
Art. 11.-No person may contribute simultaneously to the Pension Savings System and the Public Pension System defined in Article 183 of this Law.
According to this Law, they are incompatible with those granted by the Salvadoran Social Security Institute for occupational risks.
Transfer from one Administrative Institution to another
Art. 12. ANY TRANSFER FROM ONE INSTITUTION TO ANOTHER INSTITUTION SHALL BE POSSIBLE IF THE MEMBER HAS MADE AT LEAST 12 MONTHLY CONTRIBUTIONS IN THE SAME ADMINISTRATIVE INSTITUTION. (7)
Notwithstanding the foregoing paragraph, if the Administrative Institution in which the affiliate is listed is registered for two continuous months or three discontinuous months, a return lower than the minimum established in Article 81 of this Law, or if the affiliation contract is not fulfilled, the affiliate may be transferred to another Administrative Institution as soon as it requests it. Similarly, the affiliate may be transferred before the end of the period indicated by the preceding paragraph to the merger or dissolution of the respective Administrator.
By virtue of the transfer, the individual savings account will be transferred to Member's pension to another Administrative Institution.
FOR THE HANDOVER TO OPERATE, THE AFFILIATE MUST NOTIFY IN WRITING ITS DECISION
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TO YOUR EMPLOYER, IF THAT IS THE CASE, AND SIGN THE ADMINISTRATIVE INSTITUTION ' S TRANSFER BOOK OF ORIGIN. THE TRANSFER SHALL HAVE EFFECT FROM THE FIRST DAY OF THE MONTH FOLLOWING THAT IN WHICH IT IS REQUESTED, IN ACCORDANCE WITH THE TRANSFER RULES. (7)
The transfer of the resources corresponding to contributions due by the employer and not paid to the date of the transfer referred to in the preceding paragraph shall be made as soon as they have been received by the institution Administrator of origin. You must inform the Target Administrative Institution about the situation of such quotes due to the date of the transfer.
CHAPTER III OF THE CONTRIBUTIONS COMPULSORY CONTRIBUTIONS
COMPULSORY THE QUOTES (10)
Art. 13. DURING THE DURATION OF THE EMPLOYMENT RELATIONSHIP, COMPULSORY CONTRIBUTIONS MUST BE MADE ON A MONTHLY BASIS TO THE SYSTEM BY WORKERS AND EMPLOYERS.
THE OBLIGATION TO QUOTE SHALL CEASE IN ANY OF THE FOLLOWING SITUATIONS:
(a) WHEN THE AFFILIATE IS PENSIONED FOR OLD AGE, IN ACCORDANCE WITH ARTICLES 104, 200 AND 202 OF THIS LAW OR RECEIVES THE BENEFIT OF BALANCE, IN ACCORDANCE WITH ARTICLE 126 OF THIS LAW;
(b) WHEN THE AFFILIATE IS DECLARED INVALID IN THE SECOND OPINION.
IF A AFFILIATE CONTINUES TO WORK UNDER FULL OR PARTIAL INVALIDITY, HAVING BEEN DECLARED BY THE ISSUANCE OF A FIRST OPINION OR BY BEING PENALIZED FOR PARTIAL INVALIDITY BY ISSUING A SECOND OPINION, IT MUST MAKE PROVISION FOR THE QUOTATION REFERRED TO IN ARTICLE 16 (A) OF THIS LAW AND, IN ADDITION, THE COMMISSION SET OUT IN ARTICLE 49 (D) OF THE SAME.
ALSO, INVALIDITY PENSIONERS DUE TO OCCUPATIONAL RISKS SHALL BE REQUIRED TO LIST THE PERCENTAGES REFERRED TO IN THE PRECEDING PARAGRAPH, ACCORDING TO THE FINAL PARAGRAPH OF THE FOLLOWING ARTICLE.
THE PROVISIONS OF THE FOREGOING PARAGRAPH SHALL ALSO APPLY TO INVALID AFFILIATES WHO HAVE RECEIVED BALANCE BACK IN ACCORDANCE WITH ARTICLE 125 OF THIS LAW AND WHO CONTINUE TO WORK AND EXCHANGE FOR ACCESS TO BENEFITS FOR OLD AGE.
THE EESC OF THE OBLIGATION TO QUOTE WILL OPERATE WITHOUT PREJUDICE TO THE VOLUNTARY CONTRIBUTIONS THAT THE AFFILIATES DECIDE TO MAKE AND THE AGREEMENTS BETWEEN THE EMPLOYER AND
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WORKER TO MAKE ADDITIONAL CONTRIBUTIONS, MET THE CONDITIONS FOR CESSATION OF SUCH COMPULSORY. (10)
Basis of dependent worker quotes
Art. 14.-THE BASIC INCOME FOR CALCULATING THE COMPULSORY CONTRIBUTIONS OF DEPENDENT WORKERS SHALL BE THE MONTHLY SALARY PAYABLE OR THE RESPECTIVE ALLOWANCE FOR INCAPACITY FOR SICKNESS OR MATERNITY. SUCH A BASE MAY NOT BE LESS THAN THE MONTHLY MINIMUM WAGE IN FORCE, EXCEPT IN CASES SUCH AS APPRENTICES, AGRICULTURAL WORKERS, DOMESTIC WORKERS AND OTHERS WHOSE INCOME IS LESS THAN THAT MINIMUM, CASES TO BE INDICATED IN THE REGULATION RESPECTIVE. THUS, THE CEILING FOR THE CALCULATION OF THE AFOREMENTIONED CONTRIBUTIONS SHALL BE THE EQUIVALENT OF THE HIGHEST REMUNERATION PAID IN LEGAL TENDER BY THE PUBLIC ADMINISTRATION, WITHIN THE NATIONAL TERRITORY, IN ACCORDANCE WITH THE LAW ON WAGES WITH CHARGE TO THE GENERAL BUDGET AND BUDGET OF NON-BUSINESS DECENTRALIZED INSTITUTIONS, EXCLUDING REPRESENTATION EXPENSES, AS WELL AS THE SALARIES INDICATED IN THAT LAW FOR THE DIPLOMATIC AND CONSULAR POSTS.
FOR THE PURPOSES OF THIS LAW, THE MONTHLY SALARY SHALL BE THE SUM OF THE REMUNERATION IN MONEY THAT THE WORKER RECEIVES FOR THE ORDINARY SERVICES HE PROVIDES FOR ONE MONTH. CONSIDER YOURSELF AN INTEGRAL PART OF THE SALARY, EVERYTHING THAT THE WORKER RECEIVES IN MONEY AND THAT INVOLVES THE PAYMENT OF SERVICES, INCLUDING THE PERIOD OF HOLIDAYS, BONUSES, COMMISSIONS AND PERCENTAGES ON SALES.
THE FOLLOWING CONCEPTS ARE NOT PART OF THE LISTING BASE INCOME:
a) OCCASIONAL BONUSES AND BONUSES;
b) THE BACKGROUND; AND
c) VIATICS, REPRESENTATION EXPENSES AND SOCIAL BENEFITS ESTABLISHED BY LAW.
IN CASES WHERE THE AFFILIATE HAS TWO OR MORE JOBS, IT WILL QUOTE ITS PENSION SAVINGS ACCOUNT FOR ALL THE WAGES IT RECEIVES.
FOR INVALIDITY PENSIONERS WITH OCCUPATIONAL RISKS, THE PENSION SHALL BE CONSIDERED AS PART OF THE BASIC CONTRIBUTION. (2)
Independent worker contribution base income
Art. 15.-The basic income to calculate the contributions of the independent workers will be the monthly income that they declare to the Administrative Institution, which in no case will be less than the minimum monthly legal salary in force. Independent workers will be responsible for the full payment of the contributions referred to in Article 16 of this Law.
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THE CONSIGNMENT SHOWING THE PAYMENT OF THE CONTRIBUTIONS OF THE INDEPENDENT WORKERS SHALL BE UNDERSTOOD AS THE STATEMENT OF YOUR INCOME, FOR ALL THE PURPOSES OF THIS LAW. THE ADMINISTRATIVE INSTITUTIONS MAY ALSO MAKE IT EASIER FOR INDEPENDENT WORKERS TO PAY THEIR CONTRIBUTIONS BY ELECTRONIC MEANS OF COMMUNICATION. (7)
Monto and distribution of quotes
Art. 16.-EMPLOYERS AND WORKERS SHALL CONTRIBUTE TO THE PAYMENT OF CONTRIBUTIONS WITHIN THE SYSTEM IN THE PROPORTIONS LAID DOWN IN THIS LAW. (10)
THE CONTRIBUTION RATE SHALL BE THIRTEEN PER CENT OF THE RESPECTIVE CONTRIBUTION BASE INCOME. (10)
THIS QUOTATION WILL BE DISTRIBUTED AS FOLLOWS: (10)
A) TEN POINT EIGHT PERCENT (10.8%) OF THE BASE QUOTE INCOME, WILL BE ALLOCATED TO THE AFFILIATE ' S INDIVIDUAL PENSION SAVINGS ACCOUNT. OF THIS TOTAL, SIX POINTS TWENTY-FIVE PERCENT (6.25%) OF THE BASE CONTRIBUTION INCOME WILL BE CONTRIBUTED BY THE WORKER AND FOUR FIFTIES AND FIVE PERCENT (4.55%), BY THE EMPLOYER; AND (7) (10)
b) TWO POINT TWO PER CENT (2.2%) OF THE A CONTRIBUTION BASE INCOME SHALL BE ASSIGNED TO THE CONTRACT OF THE INVALIDITY AND SURVIVAL INSURANCE ESTABLISHED IN THIS LAW AND THE PAYMENT OF THE INSTITUTION MANAGING THE ADMINISTRATION OF THE INDIVIDUAL SAVINGS ACCOUNTS FOR PENSIONS. THIS PERCENTAGE SHALL BE THE RESPONSIBILITY OF THE EMPLOYER. (7) (10)
Voluntary Contributions and Contributions
Art. 17.-All members of the System, as well as their employers, may contribute to the individual pension savings accounts, values higher than the contribution referred to in Article 16 of this Law, either on a regular or occasional basis, with the object of increasing your account balances to fund an early pension or to increase your pension amount.
Individual Pension Savings Accounts
Art. 18. FOR THE PURPOSES OF THIS LAW, THE INDIVIDUAL SAVINGS ACCOUNT FOR PENSIONS, THE SUM OF THE REQUIRED CONTRIBUTIONS OF THE WORKER AND THE EMPLOYER, AS WELL AS THE VOLUNTARY CONTRIBUTIONS OF THE LATTER, SHOULD BE UNDERSTOOD AS THE INCOME TO BE CREDITED; THEY WILL BE PART OF THE INDIVIDUAL PENSION SAVINGS ACCOUNT, ANY OTHER CONTRIBUTION THAT IS ESTABLISHED, FOR SPECIFIC CASES, PROVIDED THEY MEET THE REQUIREMENTS OF THE LAW. (3)
Mandatory and voluntary contributions will be paid to the individual's individual pension savings account. Each affiliate will only be able to have an account.
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The sums existing in individual pension savings accounts may only be used to obtain the benefits covered by this Act.
Art. 18-A.-EMPLOYMENT HISTORY SHALL BE UNDERSTOOD TO MEAN THE HISTORICAL EMPLOYMENT INFORMATION OF WORKERS INCORPORATED INTO THE SYSTEM, SUPPORTED BY CONTRIBUTIONS MADE IN THE SYSTEM OF SAVINGS FOR PENSIONS, AS WELL AS CONTRIBUTIONS MADE AND CONTRIBUTIONS. SERVICE TIMES RECOGNIZED BY THE LAW OF THE PUBLIC PENSION SYSTEM, AS DEFINED IN ARTICLE 183.
THE EMPLOYMENT HISTORY WILL SERVE AS THE BASIS FOR THE CALCULATION OF THE TIME NEEDED TO ACCESS THE BENEFITS REFERRED TO IN THIS LAW.
FOR THE RECONSTRUCTION OF THE WORK HISTORY OF THE CONTRIBUTIONS MADE IN THE PUBLIC PENSION SYSTEM, AS WELL AS THE TIMES RECOGNIZED BY THIS LAW, A RELATIONAL DATABASE WILL BE BUILT TO ALLOW THE SYSTEMATIZATION OF THE INFORMATION. RESPONSIBILITY FOR THE ADMINISTRATION OF THIS BASE, AS WELL AS THE TECHNICAL PARAMETERS AND MECHANISMS TO COMPLEMENT THE INFORMATION THAT, FOR VARIOUS REASONS, CANNOT BE LOCATED OR DIGITIZED, WILL BE ESTABLISHED BY MEANS OF THE REGULATION RESPECTIVE.
HOWEVER, AS SET OUT IN THE PREVIOUS PARAGRAPH, THE CHECK OF SERVICE TIMES AND SALARY QUOTED BY PERSONS WHO WORKED IN THE PUBLIC SECTOR, MAY BE CHECKED WITH ANY OF THE FOLLOWING DOCUMENTATION, IN ORDER THAT NEXT:
a) PHOTOCOPY OF THE PLATES, CERTIFIED BY THE COMPETENT OFFICIAL OF THE INSTITUTION.
b) REPORT OF SERVICE TIMES, ISSUED AND CERTIFIED BY THE COURT OF AUDITORS OF THE REPUBLIC.
c) REPORT ON QUOTES, ISSUED AND CERTIFIED BY THE FILE AND MICROFILM DEPARTMENT OF THE INPEP.
d) COPY OF THE SERVICE TIME CARD OF PUBLIC EMPLOYEES, CERTIFIED BY THE DEPARTMENT OF FILE AND MICROFILM OF THE INPEP OR BY THE COURT OF ACCOUNTS OF THE REPUBLIC; IN ADDITION THOSE CARDS ISSUED BY OTHERS WILL BE ACCEPTED PUBLIC SECTOR INSTITUTIONS CERTIFIED BY THE COMPETENT OFFICIALS.
e) CONSTANCY OF PERIODS OF WORK EXTENDED BY THE PUBLIC INSTITUTIONS WHERE THE AFFILIATE, ISSUED BY THE COMPETENT OFFICIAL FOR THIS PURPOSE.
IF THE PUBLIC INSTITUTION TO WHICH THE PREVIOUS LITERAL REFERS AND DOES NOT EXIST, IT WILL BE UP TO THE INSTITUTION TO KEEP THE DOCUMENTATION RELATED TO THE SERVICE TIMES.
SUCH CONSTANCY MUST SPECIFY WORKING PERIODS, WAGES AND LICENSES WITHOUT
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PAY.
F) CERTIFICATE OF RIGHTS AND CONTRIBUTIONS EXTENDED BY THE ISSS, IN WHICH THE DAYS AND SALARIES LISTED IN THE HEALTH SYSTEM APPEAR.
G) ORIGINAL COPIES OF OFFICIAL JOURNALS OR PHOTOCOPIES THEREOF, IN WHICH THE AGREEMENTS OF APPOINTMENTS, INCREASES, TRANSFERS AND, IN GENERAL, THE ADMINISTRATIVE ACT THAT WANTS TO BE CHECKED, APPEAR PUBLISHED.
IF ANY OF THE DOCUMENTS MENTIONED IN THE ABOVE LITERALS ARE NOT FOUND, THE SERVICE TIME CHECK AND QUOTED WAGES MAY BE PERFORMED BY MEANS OF A SWORN STATEMENT.
NOTWITHSTANDING THE FOREGOING PARAGRAPH, SUCH VERIFICATION MAY NOT EXCEED TWO YEARS, CONTINUOUS OR DISCONTINUOUS AND SHALL NOT BE IN THE LAST TEN YEARS LISTED.
ALSO, THE QUALIFYING DOCUMENTATION FOR CHECKING DAYS AND SALARIES QUOTED BY PEOPLE WHO WORKED IN THE PRIVATE SECTOR, CAN BE CHECKED WITH ANY OF THE FOLLOWING DOCUMENTATION, IN THE ORDER THAT FOLLOWS:
a) PHOTOCOPY OF PLAN FOR THE PROVISION OF PENSION, DOCUMENTARY OR SUMMARY, IN WHICH IT IS RECORDED THAT IT HAS BEEN CANCELLED.
WHEN THE PLANILLA CONSISTS OF MORE THAN TWO SHEETS, THE SHEET ON WHICH THE AFFILIATE WAS REPORTED MAY BE ACCEPTED, PLUS THE SHEET OF THE PLANILLA IN WHICH IT IS RECORDED THAT IT HAS BEEN CANCELLED.
b) INDIVIDUAL ACCOUNT ANALYSIS, ISSUED BY THE ISSS DIVISION OF ECONOMIC BENEFITS.
(c) CERTIFICATE OF RIGHTS AND CONTRIBUTIONS EXTENDED BY THE ISSS, IN WHICH THE DAYS AND SALARIES LISTED UNDER THE IVM SCHEME APPEAR UNTIL APRIL 1998.
(d) CONSTANCY EXTENDED BY THE COMPETENT OFFICIAL OF THE ISSS OR PROOF OF PAYMENT, OF THE TEMPORARY INCAPACITY BENEFITS, CORRESPONDING TO THE PERIOD IN QUESTION.
(e) ISSS INSPECTION REPORTS, IN WHICH THE EMPLOYMENT RELATIONSHIP, WAGES AND LISTED PERIODS HAVE BEEN ESTABLISHED.
IF ANY OF THE DOCUMENTS MENTIONED IN THE ABOVE LITERALS ARE NOT FOUND, THE SERVICE TIME CHECK AND QUOTED WAGES MAY BE PERFORMED BY AFFIDAVIT.
HOWEVER, AS SET OUT IN THE PRECEDING PARAGRAPH, SUCH A CHECK MAY NOT EXCEED TWO YEARS, CONTINUOUS OR DISCONTINUOUS AND MUST NOT BE
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UNDERSTOOD IN THE LAST TEN YEARS LISTED.
THE PROVISION OF PENSION FUNDS, THE INFORMATION CORRESPONDING TO THE EMPLOYMENT HISTORY OF THE MEMBERS, REFERRED TO IN ARTICLES 184 AND 185 OF THE COUNCIL, IS REQUIRED BY THE PRE-VIEWING INSTITUTES. THIS LAW, IN ACCORDANCE WITH THE PROVISIONS OF THE RESPECTIVE REGULATION. (2) (4)
Quotes Statement and Payment
Art. 19.-The contributions set out in this Chapter shall be declared and paid by the employer, the independent worker or the entity paying for sickness disability allowance, as appropriate, in the Administrative Institution in each worker is affiliated.
For this purpose, the employer shall account for the contribution base income of each member, at the time of payment, the amount of the contributions referred to in Article 16 of this Law, and that of the (i) the Commission shall, in accordance with Article I (a) and (i),
declaration and payment shall be made within the first ten working days of the month following the month in which the income was due, or to the person in which the income was paid. the medical license was authorized by the appropriate entity, if any.
The employer or the entity paying for sickness disability allowances that does not pay the workers ' contributions in due time must declare them in the Corresponding Administrative Institution, within the period specified in the previous subparagraph of this article, without prejudice to the respective sanction.
The declaration must contain the requirements of the Pension Superintendence.
Each Administrative Institution must inform the Superintendence of Pensions on the failure to comply with the provisions of this Article, in order for the latter to impose the respective penalties in accordance with the provisions of Title II of this Law. To do this, the Pension Superintendence will determine by instructional the specific information requirements.
Collection actions
Art. 20.-THE EMPLOYER WHO HAS CEASED TO PAY IN FULL OR IN PART, AT THE TIME ESTABLISHED THE CORRESPONDING PENSION CONTRIBUTION, SHALL BE PUNISHED IN ACCORDANCE WITH THIS LAW. THE MANAGING INSTITUTION SHALL BE OBLIGED TO INITIATE THE ADMINISTRATIVE ACTION FOR THE RECOVERY OF ITS OWN OFFICE WITHIN 10 WORKING DAYS AFTER THE PERIOD OF ACCREDITATION HAS BEEN COMPLETED; THE PERIOD OF VALIDITY OF THE ACT SHALL BE TERMINATED, WITHOUT HAVING BEEN INITIATED ON ITS OWN INITIATIVE. ADMINISTRATIVE RECOVERY, THE AFFILIATE, ITS BENEFICIARIES OR THE SUPERINTENDENCE OF PENSIONS, MAY REQUEST IT AND THE MANAGING INSTITUTION, WITHOUT PREJUDICE TO ARTICLE 175 OF THIS LAW, SHALL INITIATE IT AT THE LATEST WITHIN OF THE FIRST FIVE DAYS AFTER THAT
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REQUEST; ALL FOR THE PURPOSE OF THE EMPLOYER ' S COMPLIANCE WITH ITS OBLIGATION TO PAY PERIOD OF 30 DAYS AFTER THE START OF THE RECOVERY ACTION. (2)
DUE TO THE PERIOD OF THIRTY DAYS REFERRED TO IN THE PRECEDING PARAGRAPH, WITHOUT THE SUM DUE TO BE RECOVERED, THE MANAGING INSTITUTION SHALL INITIATE A JUDICIAL RECOVERY ACTION, AND SHALL BE ENTITLED TO IT BY THE MINISTRY OF LAW. (2)
SHALL BE COMPETENT TO HEAR OF THE COURT ACTION REFERRED TO IN THE PRECEDING PARAGRAPH, THE COURTS WITH JURISDICTION IN COMMERCIAL MATTERS ACCORDING TO THE AMOUNT, AND THE INSTRUMENT OF ACTION SHALL BE THE DOCUMENT WHICH FOR THE PURPOSES OF COLLECTION THE MANAGING INSTITUTION, WHICH SHALL HAVE EXECUTIVE FORCE WITHOUT THE NEED FOR PRIOR SIGNATURE RECOGNITION AND SHALL CONTAIN THE FOLLOWING MINIMUM REQUIREMENTS: (2)
(a) DENOMINATION TO BE A DOCUMENT FOR JUDICIAL RECOVERY; (2)
b) SOCIAL DENOMINATION OF THE MANAGING INSTITUTION; (2)
c) AFFILIATE NAME AND NUMBER SINGLE RETIREMENT; (2)
d) NAME, DENOMINATION OR SOCIAL REASON OF THE EMPLOYER OBLIGATED TO THE PAYMENT; (2)
E) AMOUNT OWED AND PERIOD TO WHICH IT CORRESPONDS; (2)
f) GENERIC CONCEPT OF THE DEBT; (2)
g) FORM OF CALCULATION OF THE PROFITABILITY LEFT RECEIVE ON THE BASIS OF THE NOMINAL RETURN IN FORCE AT THE DATE OF THE CLAIM; (2)
h) MORATORICAL SURCHARGE AND DATE FROM WHICH THEY ARE CLAIMED; (2)
i) PLACE, DAY, MONTH, AND YEAR IN WHICH THE EXPIDE IS TO BE; (2)
j) NAME AND SIGNATURE OF THE LEGAL REPRESENTATIVE OF THE MANAGING INSTITUTION OR OF THE PERSON AUTHORIZED TO SUBSCRIBE TO IT; AND (2)
k) THE STAMP OF THE MANAGING INSTITUTION. (2)
TO THE PROCESSES FOLLOWED FOR THE COLLECTION OF QUOTATIONS RELATED TO THIS ARTICLE, ONLY A NUMBER OF CLAIMS OF THE SAME NATURE MAY BE ACCUMULATED AGAINST THE SAME EMPLOYER; AND IT SHALL APPLY TO THEM AS REGARDS PROCESSING, RELEVANT THAT FOR THE PROCESSES OF THIS NATURE IT PRESCRIBES THE LAW OF COMMERCIAL PROCEDURES. (2)
THE PROVISIONS OF THIS ARTICLE WILL ALSO APPLY TO THE ISSS AND THE INPEP, BUT IN THESE CASES IT WILL BE COMPETENT FOR THE KNOWLEDGE OF THE JUDICIAL ACTION OF RECOVERY, THE COURTS WITH JURISDICTION IN CIVIL MATTERS, ACCORDING TO THE AMOUNT, WHO WILL WORK
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ACCORDING TO THE PROCEDURE CORRESPONDING TO THE LAW. (2)
ANY DEBT IN FAVOUR OF THE PENSION FUND WILL BE IMPRINTED. (2)
IN THE RESPECTIVE REGULATION, THE PROCEDURE TO BE FOLLOWED TO EXECUTE THE ADMINISTRATIVE COLLECTION ACTIONS WILL BE INDICATED. (2)
IN ACCORDANCE WITH THE GENERAL RULES, THE ADMINISTRATIVE INSTITUTIONS SHALL INFORM THE CORRESPONDING JUDGE OF THE COSTS AND COSTS INCURRED IN ORDER TO RECOVER THE CONTRIBUTIONS AND COMMISSIONS REFERRED TO IN THIS ARTICLE. ARTICLE, IN ORDER THAT THOSE COSTS ARE INCORPORATED IN THE AMOUNTS TO BE RECOVERED, SO THAT THE CORRESPONDING MANAGING INSTITUTION CAN RESARCIRSE OF THE EXPENSES IN WHICH IT INCURRED. (7)
Credit Ratio
Art. 21.-The contributions constitute preferential loans in accordance with Article 121 of the Labour Code. For the purposes of this Law, the interests to be considered shall be considered on an equal footing with the other claims that may exist against the employer.
Tax Treatment
Art. 22.-The income from investments of the Pension Funds, the compulsory contributions of the members of the System, the surplus of free availability referred to in the second paragraph of Article 133 of this Law, as well as the income arising from the stay incentives regulated in Art. 50 of this Law, will be considered non-taxable income for income tax purposes.
The voluntary contributions referred to in Article 16 of this Law will be deductible from taxable income up to 10% of the affiliate's base income income. Mandatory and voluntary employer contributions will be deductible in accordance with the Income Tax Act.
CHAPTER IV OF THE PENSION FUND MANAGEMENT INSTITUTIONS
Pension Fund Management Institutions
Art. 23.-The Administrative Institutions of Pension Funds, will be the Visionary Institutions of a financial character, which will have the exclusive object to administer a fund that will be called the Pension Fund, to manage and to grant the benefits and The benefits provided by this Law. They shall be constituted as anonymous fixed capital companies, divided into nominative shares with no less than ten shareholders, of an indefinite period, must be domiciled in El Salvador and shall be obliged to maintain at least one agency or office at national level for the attention of the public.
For the constitution and the exercise of its functions, the Administrative Institutions shall be governed by the provisions of this Law, of the Organic Law of the Superintendence of Pensions, their regulations, the procedures to be followed by the Superintendence of Pensions and the other requirements that
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were applicable in accordance with the Code of Commerce.
Art. 24.-The Administrative Institutions, in the performance of their duties, shall collect the corresponding contributions and contributions, pay them in the respective individual pension savings accounts, and invest these resources of
the Administrative Institutions will only be able to administer the benefits set forth in this Law, without prejudice to the fact that they will also have to process for their affiliates the obtaining of the Certificate of Transfer referred to in Title III.
Constitution
Art. 25. In order to constitute an Administrative Institution, the authorization of the Superintendence of Pensions must be obtained in advance.
The interested parties must ask the Superintendence of Pensions for the authorization to constitute the Managing Institution, without prejudice to the requirements outlined in the Code of Commerce, accompanying the following information:
a) Project of social writing in which the statutes will be incorporated;
b) Name, age, profession or trade, domicile and nationality of natural persons seeking, and name, nature, nationality and domicile of the applicant legal persons; with the respective bank and credit references;
c) Institution's financial feasibility study;
d) Project implementation plan;
e) Indication of the amount of social capital and the amount of capital paid with which the institution will begin its operations;
f) Name, age, profession or trade, domicile and nationality of the future shareholders, as well as the amount of their respective subscriptions; and
g) The general manager, experience, and bank and credit references.
The Superintendent of Pensions may require the persons concerned within 20 working days from the date of filing of the application, other information that they believe to be relevant.
Received all the information, the Superintendence of Pensions will resolve within the next three working days, period in which it will have to publish in two newspapers of national circulation, for once to the account of the interested ones, the payroll of future shareholders who hold 1% or more of the capital of the Administrative Institution as well as
the case that the future shareholders are legal persons, the payroll of their shareholders holding more than 3% of the capital must also be published.
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This publication shall be intended for any person with knowledge of any of the Article 31 of this Law may object to the quality of the shareholders and directors who will be part of the Administrative Institution. Objections shall be submitted in writing to the Superintendence of Pensions within 15 days after publication, by issuing the relevant evidence and evidence. The information will be confidential.
In the event that shareholders are legal persons, the payroll of their shareholders holding more than five percent of the capital must also be published.
Pensions shall grant the authorization to constitute the company when the legal conditions are fulfilled and when, in its judgment, the financial bases projected, as well as the good repute and personal responsibility of the future shareholders, directors and administrators, offer protection to the interests of the public. If the decision is favorable to the petitioners, the authorization to constitute the society will be issued by Resolution of the Superintendence of Pensions, indicating the time within which the constitutive writing will have to be granted.
Art. 26.-The testimony of the public deed of the constitution of the society must be presented to the Superintendence of Pensions, in order for it to qualify if the terms stipulated in it are in conformity with the previously authorized plan and if the " Social capital has been effectively paid in accordance with this Law.
The testimony of the constitutive public deed of a Administrative Institution may not be filed for registration in the Register of Commerce, without the reason subscribed by the Superintendence of Pensions, in which the favourable rating of the pension is recorded writing.
Naming
Art. 27.-The name of the Administrative Institutions must include the phrase "Administrative of Pension Funds" or "AFP" and may not include names or stands of natural or legal persons existing which, in the opinion of the Superintendence of Pensions, they may be misleading with respect to the patrimonial or administrative responsibility of them. The Pension Superintendence may object to this social denomination.
Social Capital
Art. 28.-The social capital for the formation of an Administrative Institution may not be less than five million colones, which must be fully subscribed and paid in cash at the time of granting social writing.
If the the subscribed capital of the Administrative Institution is higher than that required, the excess shall be paid within the maximum period of two years, counted from the date of the resolution in which the Superintendence of Pensions authorizes its registration in the Register of Commerce.
The Administrative Institution should increase its share capital when occurs any of the following circumstances, as follows:
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a) Seven million five hundred thousand colones when you complete 20,000 affiliates; and
b) A fifteen millions of colones by having 40,000 members or more.
In either case, the capital must be increased in the amounts necessary for compliance with the minimum net worth in accordance with Article 35 of this Law.
Managing Institution must meet these requirements within a period of time 90 days from the date on which any of the circumstances indicated are present. In any case, the increase must be subscribed and paid in cash.
The Superintendency of Pensions will adjust every two years the amounts of social capital referred to in the first and the literals (a) and (b) of this article, according to the variation of the Consumer Price Index, prior to the Central Reserve Bank of El Salvador.
Equity participation
Art. 29.-The actions of the Administrative Institutions constituted in El Salvador shall be the property of the following persons, so that, individually or jointly, they shall reach at least fifty percent of the capital:
a) Salvadoran or Central American natural persons;
b) Salvadoran legal persons whose majority shareholders are natural persons mentioned in the previous article;
c) Foreign companies, administrative funds with three years of experience in the rotation, operating and maintaining compliance with the provisions on the prudential regulation and supervision of their country of origin;
d) International financial institutions and investment institutions linked to those in which the State or Central Reserve Bank of El Salvador has
e)SOLE CONTROLLING COMPANIES GOVERNED BY THE LAW OF BANKS, PROVIDED THAT THEY COMPLY WITH THE PROPERTY AND AUDIT CONDITIONS INDICATED THEREIN. (7)
Requirements for Administrative Institutions Shareholders
Art. 30. Any natural or legal person, national or foreign, except those referred to in Article 32 of this Law, may be the holder of the actions of an Administrative Institution. When their participation represents more than one percent of the capital of the institution, it must be authorized in advance by the Superintendence of Pensions. Within this participation will be included the actions that belong to them in the shareholders of the respective Administrative Institutions.
Art. 31.-The Superintendence of Pensions will deny the authorization referred to in the article
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, when the acquirers are in any of the following circumstances:
(a) Those who are in a state of bankruptcy or insolvency;
b) Those who have been convicted of crimes against the assets or public finances;
c) Directors, officials or administrators of an institution that is a member of the system (i) financial assistance to the financial institutions of the European Central Bank; the minimum required by the law; that it has required contributions from the State for its sanitation; or that it has been intervened by the respective authority. In any event, the liability they had for such a situation must be demonstrated;
d) Those who are debtors of the financial system for credits to which a reserve for the consolidation of the 50% has been constituted (e
who have participated directly or indirectly in serious infringement of the laws and rules governing the financial system.
Dealing with a legal person, the Previous circumstances shall be considered to be in respect of the shareholders or shareholders who are the holders of the (a) 25 percent or more of the company's shares.
The ownership of the actions of the Administrative Institutions referred to in this Law is prohibited, to legal or natural persons who have received credits that they have They are reserved for 100% in accordance with the respective instructions. This prohibition will remain as long as the credit irregularity persists.
Special Ban
Art. 32.-They may not operate or acquire shares in Administrative Institutions, the following legal persons: banks, financial institutions, insurance corporations, stock exchanges, brokerage houses, and securities holding companies, established in El Salvador and its subsidiaries; banks, financials, insurance corporations, stock exchanges, brokerage houses and risk-qualifying societies established abroad; and State institutions, of any nature.
Commercial acts carried out in contravention of this Article shall be declared null by the Superintendence of Pensions when knowledge of the same, and the actions will be sold in public auction according to the common procedures and the product of the auction will be returned to the buyers Lieutenants. The Superintendence shall also apply an administrative fine equivalent to 20% of the market value of the respective shares, to the managing companies which infringe the provisions of this Article, following the procedures laid down in this Article. established in Chapter V of the Organic Law of the Superintendence of Pensions.
Faculty to Operate
Art. 33.-The requirements laid down in this Law and in its regulations and written in the Register of Commerce, the Superintendence of Pensions will resolve if the Institution
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Administrator in question, may initiate operations and perform, without further formalities, the respective seats in the corresponding Register, provided that it is accredited to the following requirements:
a) Contar with an information system, for the registration and handling of the individual savings accounts for pensions of each member, and an accounting system of control and information required by the Superintendence of Pensions, all of which must be available to it for examination and verification; and
b) Haber designed an investment policy according to the legal limits.
Within 90 days after the to operate, the Administrative Institution must have registered and registered in a national stock exchange the shares representing its capital.
Art. 34.-The certification of the Superintendence of Pensions, indicating the name of the Administrative Institution, the trade name, the data relating to the granting and registration of its public deed of constitution, the amount of the capital paid as well as the names of its directors and administrators, it will be made known by means of publications in two national circulation newspapers, at the expense of the respective Administrative Institution, prior to the beginning of its operations.
Minimum Net Heritage
Art. 35. IN ORDER TO CARRY OUT ITS ACTIVITIES, THE ADMINISTRATIVE INSTITUTIONS SHALL HAVE AT ALL TIMES A MINIMUM NET WORTH WHICH SHALL NOT BE LESS THAN 3% OF THE VALUE OF THE PENSION FUND ADMINISTERED, WITHOUT EXCEEDING USD 10 MILLAN OF THE UNITED STATES OF AMERICA.
WITHOUT PREJUDICE TO THE FOREGOING PARAGRAPH, THE MINIMUM NET WORTH MAY NOT BE LESS THAN THE SHARE CAPITAL REQUIRED IN ACCORDANCE WITH ARTICLE 28 OF THIS ACT.
FOR THE PURPOSES OF THIS LAW, NET WORTH IS UNDERSTOOD, THE SUM OF THE CAPITAL PAID, THE LEGAL RESERVE AND OTHER CAPITAL RESERVES, PLUS THE ACCOUNTS OF SURPLUS AND RETAINED EARNINGS, FIFTY PERCENT OF THE NET PROFITS OF PROVISION OF THE INCOME TAX FOR THE CURRENT YEAR, 50% OF THE REASSESSMENTS WHICH HAVE BEEN AUTHORISED BY THE SUPERINTENDENCE OF PENSIONS, DEDUCTED CAPITAL SHARES IN OTHER COMPANIES AND THE VALUE OF THE LOSSES, IF ANY.
IF THE NET WORTH OF THE MANAGING INSTITUTION IS IN FACT LOWER THAN THE MINIMUM REQUIRED, IT SHALL BE OBLIGED, EACH TIME THIS OCCURS, TO REMEDY THAT DEFICIENCY WITHIN THE 90-DAY PERIOD FROM THE DATE OF IT WAS PRODUCED, WHICH COULD BE EXTENDED BY THE SUPERINTENDENCE OF PENSIONS, FOR UP TO THIRTY DAYS LONGER AND ONLY BECAUSE OF JUSTIFIABLE CAUSE AND ACCEPTED BY THE SUPERINTENDENCE OF PENSIONS.
IN ANY CASE, SOCIAL CAPITAL INCREASES MUST BE MADE AVAILABLE IN CASH. (2)
scriptural Authorization
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Art. 36.-The draft amendments to the social pact, dissolution and liquidation of an Administrative Institution, must be submitted prior to the authorization of the Superintendence of Pensions and once granted, they will be presented to verify their conformity with the authorized, which will be written in the respective testimony, without which they will not be able to register in the Register of Commerce. Once you have verified your compliance with the respective authorization, the Pension Superintendence will enroll the relevant in your Register.
Loss Coverage
Art. 37.-The losses that will result in any financial year will be covered in the following order:
a) With the annual profits of previous years;
b) with applications to the capital reserves; and
c) from the paid capital of society.
Capital Reduction
Art. 38.-The Administrative Institutions are prohibited from reducing their capital below the legal minimum referred to in Articles 28 and 35 of this Law.
To remedy the reduction of capital to absorb losses, it must request authorization from The Superintendence of Pensions and the agreement must be taken in Extraordinary General Meeting, specially convened for that effect, from which the certification to the Superintendence of Pensions will be transmitted so that it will find that it is and the amendment of the social pact is appropriate. In this case, the provisions of the fifth and sixth subparagraphs of Article 30 (2) and (2) shall not apply. and 3o. Article 182 of the Code of Commerce.
Contracting of Services
Art. 39.-The Administrative Institutions for the exercise of their functions may contract services with other companies such as the collection, processing of information and other related to their operations, except that referred to the administration of the investment portfolio of the pension funds.
The contracted companies must be authorized in advance by the Superintendence of Pensions, according to the regulations that are issued for this purpose, with the object that the services that meet the requirements of the System and offer security and guarantees to the affiliate.
Indebtedness
Art. 40.-The Administrative Institutions may borrow up to an amount equivalent to their net worth.
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Investment from the Administrator Institution
Art. 41. The Administrative Institutions shall invest their resources in the assets necessary for their management and in the contributions of the Pension Fund they administer. Likewise, they will be able to invest their resources in shares of national capital companies, subject to the approval of the Superintendence of Pensions, provided that these companies are engaged in activities related to the development of the as the custody and deposit of securities, collection and processing of individual accounts, advice and investment in pension fund management companies abroad, in accordance with the respective Regulations.
custody and securities holding companies the conditions of incorporation and operation regulated by the provisions of the Securities Market Law, and the shareholding of each Administrative Institution will not exceed five percent of the capital.
The Superintendence of Pensions will monitor and control the operation of such societies in terms of system-related operations.
Foreign Operations
Art. 42.-The Administrative Institutions may open agencies and offices of representation abroad, in order to provide the services to the subjects considered in Article 9 of this Law, with prior authorization of the Superintendence of Pensions, based on the respective regulations.
If authorized, the agencies and offices of representation abroad will be subject to the supervision of the Superintendence of Pensions and to the examination of the external auditors of the Respective Administrative Institutions, without prejudice to the relevant authorities
The Superintendence of Pensions following the respective procedure, must order the closure of those agencies or offices of representation abroad, which contravene the relevant legal provisions.
Promotion
Art. 43.-The Administrative Institutions will only be able to carry out promotion once the resolution of the Superintendence of Pensions for the beginning of their operations is dictated.
The Superintendence of Pensions will ensure that the promotion is aimed at providing information that does not mislead or confuse, on the institutional or patrimonial reality and on the purposes and fundamentals of the System.
The Superintendence of Pensions will authorize the activities of promotion of the administrative institutions, and may require them to amend or suspend their promotion where the promotion does not conform to the authorised, in accordance with the Promotion Regulation issued. If an Administrative Institution infringes more than twice, within a period of six months, those provisions, the promotion shall be suspended and may not be restarted without prior authorisation. In any case, the sanction set out in Article 163 of this Law will apply.
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No Administrative Institution may use methods or procedures that have an effect on the decision of the worker at the time of membership, such as offers, draws, and others other than those set out in the provisions that are issued for that purpose.
Agents of Visionary Services
Art. 44.-The Administrative Institutions will be able to carry out activities of promotion and affiliation through the of Agents of Visionary Services, contracted by them. These agents must be authorized by the Superintendence of Pensions, after approval of the requirements that it establishes, for this purpose.
The Superintendence of Pensions will register in the Public Registry corresponding to the Agents of Authorized Visionary Services, for the access and knowledge of the public.
The Administrative Institutions shall carry out all the necessary training and control actions to ensure that the service agents In the exercise of their duties, they comply with the provisions of this Law and their Regulations.
Each Visionary Services Agent will only be able to serve one Administrator Institution at a time.
Accounting
Art. 45.-The Superintendence of Pensions will establish the way in which the accounting of the Administrative Institutions and the Pension Funds must be carried out. In any case, each Administrative Institution must keep separate accounts from that of the Pension Fund that it administers.
For the above, the Superintendence of Pensions, will determine the accounting obligations of the institutions Administrators, the accounting principles of compulsory application, the provisions for the formulation of the annual accounts, the criteria for the recovery of the members of the accounts, as well as the approval, verification, the deposit and advertising of these accounts, all in order to reflect the real financial situation of the Administrative Institutions and Pension Funds.
Publication of Financial Statements
Art. 46. Each Administrative Institution shall publish in two national circulation newspapers in the first 60 days of each year, the financial statements of the company and the Pension Fund it administers, referred to the annual accounting year corresponding to the previous immediate year, subject to what the Superintendence of Pensions dictates for it.
These financial statements must be audited by external auditors registered in the register of the Superintendence of the System Financial, and publications should contain their opinion.
The Superintendence Pensions shall lay down the minimum audit requirements to be met by the external auditors in respect of independent audits carried out by the institutions.
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Administrators. Likewise, it will have the power to verify compliance with these minimum requirements.
EACH MANAGING INSTITUTION MUST ALSO PUBLISH IN TWO NEWSPAPERS OF GREATER NATIONAL CIRCULATION, AT LEAST TWICE IN THE YEAR, SITUATIONS AND PRELIMINARY SETTLEMENTS OF INCOME ACCOUNTS, BOTH OF THE COMPANY AND OF THE FUND IT MANAGES; ONE OF WHICH MUST BE REFERRED TO AS OF JUNE 30, THE OTHER DATE WILL BE DETERMINED BY THE SUPERINTENDENCE OF PENSIONS. (7)
Auto-throttling
Art. 47.-The Administrative Institutions shall develop internal prudential control policies that allow them to adequately manage their financial, regulatory and operational risks and must submit them to the respective boards of directors. directives. The external auditors will have to consider in their reports the compliance with these policies.
The Superintendence of Pensions will establish the aspects that the Administrative Institutions will have to include in their policies of prudential control.
Commissions
Art. 48. THE MANAGING INSTITUTION SHALL RECEIVE REMUNERATION FOR THE PROVISION OF ITS SERVICES IN THE FORM OF A COMMISSION, WHICH SHALL SUBSEQUENTLY BE CHARGED TO THE ACCREDITATION OF THE PRE-VIEWING CONTRIBUTIONS IN THE RESPECTIVE INDIVIDUAL ACCOUNTS OF SAVINGS FOR THE PENSIONS OF ITS MEMBERS. (2)
These commissions shall be intended for payment to the Administrative Institution for the management of the individual pension savings accounts, the administration of the Pension Fund and the old-age, invalidity and survival, the management of the minimum pension guaranteed by the State, the payment of the invalidity and survivor's insurance contract as referred to in Article 124 of this Law, and the administration of the other benefits which it provides.
Art. 49.-The commissions shall be established freely by each Administrative Institution within the limits indicated, in a uniform manner for all its members.
The Administrative Institutions may establish commissions for the The following services:
a) By the administration of the individual pension savings accounts and the invalidity and survival insurance contract. This commission may only be established as a percentage of the base contribution income and shall correspond to that stated in Article 16 (b) of this Law;
b) By the administration of the scheduled income. Such a fee may only be established on the basis of a percentage of the monthly pension, which may not exceed one and a half per cent of the value of the monthly pension;
c) For the management of individual pension savings accounts, inactive by more than one year uninterrupted with balances exceeding 100 minimum wages. The Institution
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Administrator will be able to discount the account's annual profitability up to five percent (a) such a return, a discount which must not exceed one and a half per cent of the basic contribution of the last 12 months listed. This Commission shall not include the Invalidity and Survival Payment Insurance referred to in Article 16 (b) of this Act;
d) By the administration of the individual accounts of pensioners or affiliates that comply with the age requirements do not exercise their right and continue to be listed. This commission shall be special as it shall not include the payment of the invalidity and survivor's insurance contract referred to in Article 16 (b) of this Law. It may be established as a percentage of the declared base income that is not greater than one and a half percent of it; and
e) BY THE ADMINISTRATION OF THE INDIVIDUAL SAVINGS ACCOUNTS FOR PENSIONS OF SALVADORANS NOT RESIDENT IN THE TERRITORY OF THE REPUBLIC. THIS COMMISSION MAY ONLY BE ESTABLISHED AS A PERCENTAGE OF THE DECLARED BASE INCOME, WHICH SHALL NOT EXCEED ONE AND A HALF PER CENT OF IT. THE MANAGEMENT OF THESE ACCOUNTS DOES NOT INCLUDE COVERAGE OF INVALIDITY INSURANCE AND SURVIVAL, SO NO SUCH COVERAGE WILL BE CHARGED. THE ABOVE WILL BE NORMALIZED BY A REGULATION ESPECIALLY DICTATED TO THE EFFECT. (7)
The commissions thus determined must be informed to the public and to the Superintendence of Pensions, at least monthly, in the manner indicated by it, and the modifications of these commissions will govern ninety days after their communication, with the exception of the start of operations of each administrative institution. The commission referred to in literal (a) of this article shall be communicated indicating the percentage of the average basic contribution income corresponding to the contract of the invalidity and survival insurance.
Incentive to Stay
Art. 50.-The Administrative Institutions may establish mechanisms of incentives for the permanence of their members. These mechanisms will be applied in a uniform manner to all members who make contributions for the same number of months. The incentives will be established as a percentage of the base income and will consist of returns on commissions paid during periods of stay, which may be delivered in cash or credited to the respective ones. individual pension savings accounts, depending on the choice of the affiliate.
For the purposes of determining these mechanisms, the procedure set out in the last paragraph of the previous article will follow.
Information to the Affiliate
Art. 51.-The Administrative Institution will be obliged to provide the affiliate, a book of
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savings for pensions, in which you will register each time you request it, with a maximum of six times per year, the number of contributions paid in your individual pension savings account and their value to date. However, the Administrative Institution may develop electronic mechanisms to replace the previous mechanism.
The Administrative Institution, at least every six months, shall communicate in writing to each of its members, all movements recorded in your individual pension savings account, with an indication of the number of shares recorded, their value and the date. If an account does not register movements, the communication shall be restored until new contributions are received. In any event, the Administrative Institution shall be obliged to report the balance of the account at least once a year.
Each managing institution shall be responsible for the employment history of its members, and must maintain a safeguard physical and magnetic of the same, from which he will deliver a support in magnetic medium to the Superintendence of Pensions in semi-annual form.
Art. 52. The Administrative Institutions shall maintain in their offices, in a place of easy access to the public, an extract available containing the following information:
a) Background of the Institution: Denomination, domicile, registration in the Register of Commerce and resolution that authorized the commencement of its operations; General Manager and Directory; and Agencies and offices of representation;
b) Balance sheet of the last financial year and the statements of results that determine the Superintendence of Pensions, both from the Administrative Institution and from the Fund Pensions. In any case, the last two states of results shall be kept available to the public;
c) Capital of the capital, the Pension Fund, the Profitability Fluctuation Reserve and the Special Guarantee Fund;
d) Pension Fund fees;
e) Monto of fees charged, detailing the average percentage of the invalidity and survival premium;
f) Investment policy and composition of the investment portfolio of the Fund Pensions; and
g) Profitability of the last twelve months of the Pension Fund they manage.
This background should be updated monthly within the first ten days of each month. Likewise, the information referred to in the numbers c, d, e, f and g, in this article and the composition of the fund's investment portfolio, shall be published quarterly in a national circulation journal. The investment policy will be published annually.
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Prohibition
Art. 53.-Who has not been constituted in accordance with the provisions of this Law as the Administrative Institution of Pension Funds cannot be attributed the quality of such, nor will it be able to perform the functions that in this Law are conferred upon them.
may place in your premises or office, notice containing expressions indicating that it is an Administrative Institution of the Pension Savings System, nor can you make use of letterheads, posters, titles, forms, receipts, circulars or any other paper, containing names or other words that indicate that the business to which These persons are dedicated to the Administrative Institution of Pension Funds of the System of Savings for Pensions. It will also be prohibited for them, to carry out propaganda by the press or other means of publicity in the use of such expressions.
The Superintendence of Pensions will make the antecedents available to the Office of the Prosecutor General of the Republic it is, to initiate the relevant actions, without prejudice to the public action promoted by those affected.
When in the judgment of the Superintendence of Pensions, there are indications that they can presume the realization of some of the activities that in this article will be detailed will have, with respect to the alleged offenders, the same inspection powers conferred on it by its Organic Law for the institutions audited.
The violations of this article shall be sanctioned in accordance with the provisions of Title II of this Law, without prejudice to the application of the provisions of Title II of this Law.
PENSION FUNDS
PENSION FUNDS
DIRECTORS AND ADMINISTRATORS REQUIREMENTS
ART. 54.-The Administrative Institutions shall be administered by a Board of Directors, composed of five or more owners and equal number of alternates.
Directors or administrators of Administrative Institutions shall be required to gather, in addition to the requirements set forth by the Code of Commerce for the directors of public limited companies, the following:
a) Being over twenty-five years of age;
b) Being of recognized good repute; and
c) Demonstrating financial or administrative competence;
You must also present two references banking and credit, at the very least, that demonstrate their financial soundness.
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Inskills of Directors and Administrators
Art. 55.-They are indefable to be directors or administrators of Administrative Institutions:
a) Directors, officials or employees of any other Administrative Institution, banks, financials, brokerage houses, stock exchanges securities and insurance companies, as well as the Securities, Financial and Pensions Superintendents;
b) Insolvent or bankrupt, as long as they have not been rehabilitated, and those who have been judicially qualified as liable for a guilty or intentional bankruptcy, in any event;
c) financial system for credits to which a consolidation reserve of fifty per cent or more of the balance has been constituted as long as such a situation persists.
This inability shall also apply to those directors who hold the 25% or more of the shares of companies in the situation referred to above;
(d) Those who have been directors, officials or administrators of an institution which is a member of the financial system which has incurred in the capital deficiencies of twenty per cent or more of the minimum required by the Law; required contributions from the State for its sanitation; or that it has been intervened by the respective authority. In any event, the responsibility they had for such a situation must be demonstrated;
e) Those who have been convicted by executed sentence for crimes against the estate or against public finances;
f) Those who have participated directly or indirectly in serious infringement of the laws and rules governing the financial system;
g) Those who have been judicially convicted of the payment of debts while they do not check to have cancelled them;
h) Public and people's choice officials; and
i) Those who are legally unable.
The inabilities contained in literal (b), and the first paragraph of literal (c), will also apply to the respective spouses or first-degree relatives of consanguinity.
Inskill Declaratory
Art. 56.-When one of the causes of inability mentioned in the previous article exists or exceeds, the management of the director or the official shall lapse and his replacement shall be carried out in accordance with the social pact of the company.
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Corresponding to the Superintendence of Pensions, on its own initiative or at the request of a party, to declare the inability, without prejudice to applicable penalties in accordance with the provisions of the Criminal Code.
However, acts or contracts authorised by an indeft official, before their inability to be declared, shall not be invalidated for this purpose in respect of the institution or with respect to third parties, except who have caused damages against the Pension Fund or the affiliates.
Bans
Art. 57.-The Administrative Institutions may not acquire, lease, use or use the assets of the Pension Fund that they administer, or dispose of or lease from their assets.
The Administrative Institution may not investing in contributions from other Pension Funds. They will also not be able to give or receive money on loan from the Pension Funds, or to grant guarantees to them and vice versa.
The directors and administrators of the administrative institutions, must inform the Superintendence of Pensions, within the following business day of an operation, with its own resources, on fixed income instruments in which the investment of public funds is authorised.
For any lack of the provisions of this Article, the Superintendence of Pensions will order the irregularity to be eliminated within a maximum of thirty days
CHAPTER VI DISSOLUTION AND SETTLEMENT
VOLUNTARY DISSOLUTION
ART. 58.-In the event of voluntary dissolution, the settlement may be effected by the Administrative Institution concerned, subject to the authorization of the Superintendence of Pensions and the indication of the period in which the liquidation is to be carried out. For this purpose, you must present a settlement plan, which will be followed by a Delegate appointed by the Superintendent.
The omission of this requirement or the failure to comply with the approved plan will empower the Superintendence of Pensions to require, in accordance with the procedure referred to in the second paragraph of the previous article, its forced liquidation.
Dissolution and Settlement Causals of the Administrative Institutions
Art. 59.-The dissolution and liquidation of an Administrative Institution shall proceed, for the following reasons:
(a) When you have not learned the difference of minimum profitability referred to in Article 85 of this Law;
b) When you do not know have completed the Special Guarantee or Heritage Export on the
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deadlines set in this Act;
c) When in six months I will register three deficits of Value custody; and
d) When the Pension Superintendence revokes the authorization to operate.
Art. 60.-Any of the causes of dissolution and liquidation, the Superintendent of Pensions must issue a resolution revoking the authorization to operate in the administration of a Pension Fund to the Administrative Institution causing.
Forced Dissolution
Art. 61.-When the cause of dissolution contained in this Law is present, and the General Shareholders ' Meeting does not recognize the cause of dissolution, the Superintendence will revoke the authorization to administer the Pension Fund to the Institution that corresponds. The Superintendent will request the dissolution of the same, without prejudice to the privileges of the Office of the Prosecutor General of the Republic.
Art. 62. During the judicial process referred to in the previous article, the Administrative Institution will not be able to continue with the operations indicated by this Law. The Superintendence of Pensions must replace it in the administration of the Pension Fund while the judge dictates the corresponding sentence.
Art. 63.-The company will release the company and order its liquidation, the Superintendent will appoint one or more liquidators, and must add to the social reason of the Administrative Institution the sentence: "in liquidation".
Liquidation Forzosa
Art. 64. -In the settlement period, liquidators may only execute the acts and conclude contracts which are directly aimed at facilitating it. Liquidators must not make new affiliations, or develop activities that adversely affect the Pension Fund.
If you fail to comply with the above paragraph, you will incur liability liquidators. civil and criminal proceedings, without prejudice to the fact that they must respond with their personal property for damages to the Pension Fund.
Art. 65.-The liquidator or the liquidators appointed shall have as their principal attribution the protection of the Pension Fund and the assets of the Institution. For this purpose, you can exercise the legal representation and administration of the Administrative Institution, invest the Pension Fund fees and develop the other functions assigned to them.
Notification to the Public
Art. 66.-The liquidators shall notify by means of notices published weekly in a national circulation journal, within a period of thirty days, all natural and legal persons who may have rights against the Administrative Institution in settlement to accredit your rights, presenting the necessary evidential documentation within ninety days after the date of
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the last publication and at the place specified therein. The notification shall indicate the last business date for receipt of such evidence, after which it shall not accept any claim.
However, the Pension Fund of the Administrative Institution in liquidation shall be recognize their rights without the need for the aforementioned process.
Inventory Lifting by Liquidators
Art. 67.-The liquidators appointed when they take possession of their positions in a Administrative Institution in liquidation shall establish a record containing the inventory of assets and liabilities of the Administrative Institution and the assets and liabilities of the Pension Fund.
Persons with legitimate interest may obtain information from the referred inventories in the offices of the Administrative Institution in liquidation.
Payment Prelate
Art. 68.-In the liquidation of an Administrative Institution, and after covering the expenses related to the settlement, the payments shall be made according to the following order:
a) Payment of Salaries, social benefits and other obligations of social security;
b) Payment of the minimum return to the Pension Fund;
c) Payment of liabilities with the Pension Fund that affects the individual accounts of the members, such as the discounts per stay;
d) Obligations in favor of the State and the Municipalities, including any type of tax, rate and fee; and
e) Payment of obligations and other balances due to third parties.
Art. 69.-In the case of the liquidation of an Administrative Institution, the commissions received for the duration of the liquidation process shall be used primarily for the payment of the invalidity and survivor's insurance contract, which shall be inembargable.
In the same way, the supplementary capital, the special contribution and the payment of invalidity pensions originated by the first opinion received by the Administrative Institution on behalf of the Society of Insurance of Persons, will be inembargable.
Publication of Financial Statements
Art. 70.-The Superintendence of Pensions shall publish, in two national newspapers, on behalf of the Administrative Institution, at least quarterly, the financial statements which inform on the situation of the institution Administrator in liquidation, together with the full opinion of the external auditor, as well as the Pension Fund to administer.
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Unclaimed Values
Art. 71.-The cash and assets of an Administrative Institution in liquidation that are claimed by its creditors, completed the liquidation process, shall be deposited by the liquidators at the Central Bank of El Salvador to name of the creditors.
The Central Bank shall retain that amount for the period of ten years or for the limitation period of the corresponding obligation if it were less, and may make the corresponding payments with the superintendence of the Superintendence. Pensions. If the deadline is expired, unclaimed balances will be prescribed and passed to the General Fund of the Nation.
For the pending litigation rights, the deadline applies from the date of the last executed sentence.
Distribution Final Remainer
Art. 72.-When the liquidator has fully paid the obligations of an Administrative Institution in liquidation and complied with the provisions of Article 66 of this Law and provided that it has remained, it shall convene the General Shareholders ' Meeting to to agree to their distribution in proportion to their contributions.
Judicial Actions against Officials and Employees
Art. 73.-The Superintendent or liquidators of an Administrative Institution must initiate and continue any necessary judicial action against those who may be responsible for their maladministration, before the expiry of the time limits. limitation of the action laid down by the Trade and Civil Codes. The above, without prejudice to the default action of officials to initiate such actions.
Art. 74.-In any case of dissolution and liquidation, the Superintendence of Pensions, shall request the Attorney General of the Republic to take the necessary measures to prevent or pursue any criminal offence of a criminal nature in which the administrators, liquidators or any other person directly involved in the settlement process. However, the Superintendence of Pensions will be invested with all the necessary powers for the proper management of the assets of the Pension Fund.
Pension Fund Cession
Art. 75.-The dissolution of an Administrative Institution, as the case may be, shall be completed and the members shall have the right to transfer to the Administrative Institution of their choice, during the period of ninety calendar days, On the expiry of that period, the liquidator shall give the administration of the remainder of the individual pension savings accounts to the administrative institutions which, in accordance with the respective regulations, have the financial capacity for receipt.
SPECIAL CASE OF DISSOLUTION AND SETTLEMENT
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Art.75-A. IF ONLY TWO ADMINISTRATIVE INSTITUTIONS ARE OPERATING, AND ANY ONE OF THESE INSTITUTIONS SHALL AGREE TO DISBAND VOLUNTARILY IN ACCORDANCE WITH ARTICLE 58 OF THIS LAW, OR SHALL INCUR ANY CAUSE OF DISSOLUTION AS PROVIDED FOR IN THIS LAW, THE SUPERINTENDENCY OF PENSIONS WILL REVOKE THE ADMINISTRATIVE INSTITUTION CAUSING THE AUTHORIZATION TO ADMINISTER THE RESPECTIVE PENSION FUND AND, FOR THE PURPOSES OF MAINTAINING OPERATING A MINIMUM OF TWO PENSION FUND MANAGERS, WILL SUBMIT SUCH AUTHORISATION SHALL BE PUT TO TENDER AND THE BASES TO BE ATTACHED TO THE SAME. IN THIS CASE, THE EXCEPTION REFERRED TO IN THE SECOND PARAGRAPH OF ARTICLE 12 OF THIS LAW SHALL NOT APPLY AND THE DISSOLUTION AND LIQUIDATION SHALL BE SUBJECT TO THE PROVISIONS OF THIS LAW AND THE RESPECTIVE REGULATION. (2)
By Merge
Art. 76.-When the merger of two or more Administrative Institutions is produced, they will not be liquidated or the transfer of their respective Pension Funds.
In case of merger, the authorization of the Superintendence of Pensions must be published in a national circulation journal within a period of 15 days from the date of its award and shall produce the effect of merging the respective companies and the Pension Funds within 60 days of the publication, without prejudice to the compliance with other formalities established by the Law.
The publication shall contain, in addition, the amount of the fees that the entity resulting from the merger has established.
The merger may not result in a decrease in the balance in the individual pension savings accounts, or in the benefits that have been provided granted to affiliates.
CHAPTER VII OF THE PENSION FUND
Definition
Art. 77.-The Pension Fund shall be the sole property of the members, independent and different from the assets of the Administrative Institution, without the latter having dominion over that institution.
The Pension Fund shall consist of the individual pension savings accounts; the Profitability Fluctuation Reserve; the Transfer Certificates that have been made effective; and the returns on their investments, deducted from the commissions of the Administrative Institution.
Inembargability
Art. 78.-The property and rights of the Pension Funds shall be inembargable and shall be intended only for the purpose of generating benefits in accordance with the provisions of this Law.
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In addition, those sums intended for the payment of invalidity and survivor's insurance premiums, will be inembargable.
Fund Expression in Quota
Art. 79.-The value of each Pension Fund shall be expressed in shares of equal amount and characteristics, in order to determine the participation of each of the members and of the Administrative Institution itself within the assets of the Fund and of distribute the profitability of your investments.
The value of the quota will be determined daily on the basis of the economic value or the market value of the investments. The way to carry out the valuation will be determined by the Superintendence of Pensions according to the regulation that will be applicable to all the Pension Funds, in which the methodology and the periodicity will be established to effect the valuation of the instruments on which the Funds are invested.
The average monthly value of a Fund's quota will be determined as the sum of the values of each day's quotas, divided by the number of days of the month.
Superintendence of Pensions will set the initial value of the Pension Fund fee, trying to make it similar for all Administrative Institutions that start operations in the same period.
Profitability of the last twelve months
Art. 80.-The nominal return of the last twelve months of a Fund, shall be the percentage change of the average value of the month's quota, with respect to the average monthly value in the same month of the previous year.
To determine the profitability For the last 12 months, the average value of all the Funds shall be calculated as the weighted average value of all the Funds. The weighting factor shall be the proportion representing the total value of the contributions of each of the Funds, in relation to the value of the contributions of all Funds, on the last day of the previous month.
Minimum Return on the Fund
Art. 81.-The Administrative Institutions shall be responsible for the monthly return of the nominal return of the Fund's last twelve months, whichever is lower between:
a) The nominal return of the last twelve months average of all Pension Funds minus three points; and
b) Eighty percent of the average nominal return of the last twelve months of all Funds.
The provisions of the foregoing paragraph shall not apply to the Administrative institutions with less than twelve months of operation.
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Minimum profitability will be ensured by the mechanisms and in the form described in the articles 83, 84, 85 and 35 of this Law in that order.
Minimum Profitability Guarantees
Art. 82. In order to ensure the minimum return referred to in the previous Article, there shall be a "Profitability Fluctuation Reserve" which shall be part of the Fund and a "Special Guarantee Fund", which is the property of the Administrative Institution, which will operate as noted in the following items.
Rentability Fluctuation Reserve
Art. 83.-The Profitability Fluctuation Reserve shall be formed with the nominal returns of the last twelve months of the respective Fund which in one month exceeds the amount of the following calculations:
a) The nominal return of the Last twelve months average of all Funds plus three points, or
b) The average nominal return of the last twelve months of all Funds plus twenty percent of the Funds.
This Reserve will be expressed in the Pension Fund.
The balance of the Profitability Fluctuation Reserve will only have the following targets:
1. Cover the difference between the minimum return defined in Article 81 of this Law, and the profitability of the last twelve months of the Fund, in case the latter is less;
2. Increase in the opportunity that the Administrative Institution establishes, the Fund's profitability in a given month until reaching the smallest amount between:
2.1. The profitability of the last twelve months average of all Funds plus three points;
2.2. The profitability of the last twelve months average of all Funds plus twenty percent.
This application can only be performed by the amounts in which the Profitability Fluctuation Reserve exceeds one percent of the value of the Background;
3. Where the resources accumulated in the Profitability Fluctuation Reserve exceed one per cent of the value of the Fund for more than two years, the excess over that percentage shall be payable to the individual savings accounts of the Fund. affiliates, regardless of the profitability obtained;
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4. To pay the Fund the total balance of the Reserve, to the date of the liquidation or dissolution of the Administrative Institution.
Special Guarantee of Guarantee
Art. 84.-EACH MANAGING INSTITUTION SHALL CONSTITUTE AND MAINTAIN A SPECIAL GUARANTEE CONTRIBUTION WHICH SHALL BE INTENDED TO SUPPORT THE MINIMUM RETURN ON THE FUND WHICH IT ADMINISTERS. THIS GUARANTEE SHALL BE EQUIVALENT TO A PERCENTAGE OF THE ASSET OF THE ACTUAL FUND ADMINISTERED, WITHOUT EXCEEDING THREE PER CENT OF THE FUND AND FOR ITS IMPLEMENTATION THE RESPECTIVE REGULATION SHALL BE ISSUED. FOR THIS PURPOSE, EACH MANAGING INSTITUTION MAY CONTRACT WITH ITS OWN RESOURCES, SECURITIES OR OTHER FINANCIAL INSTRUMENTS TO SUPPORT THE ESTABLISHED PERCENTAGE, WITH FINANCIAL INSTITUTIONS HAVING THE MINIMUM RATING DETERMINED FOR THE EMISSIONS SUBJECT TO BEING ACQUIRED WITH THE PENSION FUNDS. (2) (7)
Art. 85.-If the nominal return of the last 12 months of a Fund is, in a given month, less than the minimum return specified in Article 81 of this Law, and the Profitability Fluctuation Reserve is not sufficient to cover the difference, the Administrative Institution must find it within five working days with the resources of the Special Guarantee Section, and must replenish the asset within 15 working days.
If the Minimum profitability indicated, the difference shall be supplemented by the assets of the institution Administrator.
Values Custody and Repository
Art. 86.-The values in which the Administrative Institution invests the resources of the Fund shall be in the custody of a company specializing in the deposit and custody of securities. Any entity that is chosen must be established in accordance with the Securities Market Act, authorized by the Superintendency of Securities and settled in the Register of the Superintendence of Pensions for that purpose.
that these companies are settled in the Register of the Superintendence of Pensions, the latter will verify that these societies have the systems of security and control required by the System, and in case of foreign societies, will be able require certifications from the regulatory or audit entities of the countries of origin.
Custody and securities filing companies, as far as the Pension Fund is concerned, will have their information systems in line with the Pension Superintendence.
The Administrative Institution must keep a record of the securities which keeps in custody, which should be supported by the respective documentation.
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Art. 87.-One hundred percent of the investments of the Pension Fund in securities, must be maintained in custody as provided in the previous article. Only the accounts referred to in Article 103 of this Law shall be considered outside this requirement.
Custodians shall report to the Superintendency of Pensions, on a daily basis, the value of the portfolio as each Administrative Institution keep registered, which will limit the withdrawal of the securities deposited in accordance with the provisions of the Pension Superintendence.
The custody deficit must be replenished within the following business day and will make the Institution Administrator in a fine pursuant to Title II of this Law.
When the Institution Administratier extravie un titulvalor, must communicate it in writing to the Superintendence of Pensions in the term of a working day counted from the day of the loss, case contrary will be sanctioned according to the provisions of the Title II of this Law. The communication will be able to obtain the replacement in accordance with the procedure outlined in the Commercial Code.
CHAPTER VIII OF THE INVESTMENT OF PENSION FUNDS
Object of Investments
Art. 88.-The purpose of the investments of the Pension Funds is to obtain adequate profitability in terms of security, liquidity and risk diversification. Any other objective is contrary to the interests of the Pension Funds.
The deposits and securities in which the Fund's resources are invested must be issued or transferred with the "Pension Fund" clause, preceded by the name of the corresponding Administrative Institution. This provision shall be limited in cases where the securities in custody are found or a transaction clearing system is used, so that only such a clause shall be used in the records of the custody entities and securities repository
Risk Commission
Art. 89.-Create the Risk Commission in order to determine the following:
a) The maximum investment limits by type of instrument within the percentages set out in the Law;
b) The weighted average time range of the investments with resources from the Funds are made in instruments of fixed income; and
(c) The minimum risk rating limits for the instruments in which the Pension Funds and insurance company obligations are to be invested. be contracted in the System according to its rating, which must be carried out by two entities dedicated to such activity, in accordance with the Securities Market Act.
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This Commission will be composed of the Superintendents of Securities, Pensions, System Financial and by the President of the Central Reserve Bank, and will be chaired by the Superintendent of Pensions. The Commission shall meet at least once a year in order to determine the relevant limits.
The sessions of the Commission at risk shall be at least, with the assistance of three of its members, which shall in any event have the following: assistance from the Superintendent of Pensions or the person empowered to do so. Resolutions will be taken by a majority and in case of a tie, the Superintendent of Pensions will have double voting.
The Superintendence of Pensions will provide the necessary technical support to the Risk Commission.
THE INVESTMENTS TO BE MADE REFERS TO THE LITERAL (M) OF THE ART. 91 OF THIS LAW, CONCERNING THE CERTIFICATES OF INVESTMENT OF PRE-VISIONALS, DO NOT REQUIRE TO BE SUBJECTED TO PROCESSES OF CLASSIFICATION OF RISK BY ENTITIES ENGAGED IN SUCH ACTIVITY, IN ACCORDANCE WITH THE LAW OF THE MARKET OF VALUES. (8)
Reserved Information
Art. 90.-Members of the Risk Commission shall keep an absolute reserve in relation to documents and a history of issuers and instruments subject to classification until such information has a public character. Likewise, they are prohibited from being directly or indirectly valued from the reserved information, in order to obtain advantages for themselves or for others.
Diversification of Investments by Instrument
Art. 91. THE RISK COMMISSION SHALL SET THE CEILINGS FOR THE INVESTMENT OF EACH OF THE PORTFOLIOS OF THE PENSION FUND BY TYPE OF FINANCIAL INSTRUMENT. THESE MAXIMUM LIMITS SHALL BE SET WITHIN THE PERCENTAGE RANGES OF THE ASSET OF EACH TYPE OF PORTFOLIO, AS DETAILED BELOW: (2) (8)
(A) SECURITIES ISSUED BY THE GENERAL TREASURY MANAGEMENT OF EL SALVADOR, ACQUIRED EITHER IN A STOCK EXCHANGE OF NATIONAL OR INTERNATIONAL SECURITIES ORGANISED, BETWEEN 20% AND 50%; (2) (7) (8)
(b) SECURITIES ISSUED BY THE CENTRAL RESERVE BANK OF EL SALVADOR, BETWEEN 20% AND 30%; (2) (8)
c) SECURITIES ISSUED OR GUARANTEED BY STATE ENTERPRISES AND OFFICIAL AUTONOMOUS INSTITUTIONS, EXCEPT THOSE OF THE BANK MULTISECTORAL INVESTMENTS AND THE SOCIAL FUND FOR HOUSING, BETWEEN 5% AND 20%; (2) (8)
d) SECURITIES ISSUED BY THE MULTISECTORAL INVESTMENT BANK, BETWEEN 20% AND 30%, TO CALCULATE THIS LIMIT, THE EMISSIONS SHOULD NOT BE INCLUDED OF PRE-VISIONARY INVESTMENT CERTIFICATES I MADE AS A TRUSTEE OF THE BANK; (2) (8)
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(e) NEGOTIABLE OBLIGATIONS OF MORE THAN ONE YEAR ISSUED BY SALVADORAN COMPANIES, BETWEEN THE 30% AND 40%; (2) (8)
F) SHARES AND BONDS CONVERTIBLE INTO SHARES OF SALVADORAN SOCIETY, BETWEEN 0% AND 20%; (2) (8)
g) CERTIFICATES OF PARTICIPATION OF SALVADORAN INVESTMENT FUNDS, BETWEEN 0% AND 20%; (2) (8)
h) CERTIFICATES OF DEPOSIT AND SECURITIES ISSUED OR GUARANTEED BY SALVADORAN BANKS, BETWEEN 30% AND 40%; (2) (8)
I) SECURITIES ISSUED WITH A MORTGAGE OR LOAN GUARANTEE ON A MORTGAGE PORTFOLIO, INTENDED FOR HOUSING FINANCING, INCLUDING THOSE ISSUED BY THE SOCIAL FUND FOR HOUSING, BETWEEN 30% AND 40%. IN ANY CASE, THE SECURITIES ISSUED BY THE SOCIAL FUND FOR HOUSING, MAY NOT EXCEED 10%; (2) (7) (8)
J) FINANCIAL ROLES OF THE INSURED MORTGAGE SYSTEM OR INSURED MORTGAGE-CARDS, BETWEEN 15% AND 20%; (2) (8)
(k) SECURITIES OF PUBLIC OFFERING, ISSUED BY SALVADORAN SECURITIATIVE COMPANIES, AND TRUST CERTIFICATES OF PARTICIPATION, BETWEEN 0% AND 20%; (2) (8)
L) OTHER PUBLIC OFFERING INSTRUMENTS, BETWEEN 0% AND 30%; (2) (7) (8)
(m) PRE-VIEWING INVESTMENT CERTIFICATES ISSUED BY THE ESCROW FOR PRE-VIEWING OBLIGATIONS; THEY SHALL HAVE A MAXIMUM LIMIT OF 45% OF THE FUND. THE EMISSIONS WHICH MAY BE ACQUIRED WITH THE RESOURCES OF THE PENSION FUNDS IN AN ANNUAL FORM SHALL BE EQUIVALENT TO THE REQUIREMENTS LAID DOWN AND THE PROCEDURE LAID DOWN IN ARTICLES 13 AND 16 OF THE LAW OF THE FUND FOR PRE-VIEWING OBLIGATIONS, RESPECTIVELY; (8) (10) *** DECLARED UNCONSTITUTIONAL
n) SECURITIES BACKED WITH FLOWS ORIGINATING FROM REAL ESTATE, INFRASTRUCTURE OR DEVELOPMENT SUCH AS ROADS, PORTS AND OTHER WORKS, BETWEEN 0% AND 10% OF THE FUND RELEASED. FOR THE PURPOSES OF ENSURING THE GUARANTEE OF FIRST-LINE MULTILATERAL BODIES, STATES OR REINSURERS, BETWEEN 10% AND 30% OF THE FUND ADMINISTERED. (8)
INVESTMENTS IN PENSION FUNDS IN THE ABOVE INSTRUMENTS SHOULD BE MADE AT COMPETITIVE INTEREST RATES ON THE MARKET. (2) (8)
THE SUM OF INVESTMENTS IN THE SECURITIES REFERRED TO IN POINTS (a), (b), (c), (d) AND (m) OF THIS ARTICLE SHALL NOT BE GREATER THAN SEVENTY PER CENT OF THE FUND ' S ASSET. (2) (8)
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THE SUM OF INVESTMENTS IN THE SECURITIES REFERRED TO IN POINTS (e), (f), (g), (k) AND (l) OF THIS ARTICLE, CANNOT BE GREATER THAN SEVENTY PERCENT OF THE ASSET OF THE FUND. (2) (8)
THE SUM OF THE INVESTMENTS OF A FUND IN THE SECURITIES SET OUT IN POINTS (d), (h), (i) AND (j) OF THIS ARTICLE, EXCLUDING THOSE ISSUED BY THE SOCIAL FUND FOR HOUSING, SHALL NOT BE GREATER THAN SIXTY PER CENT OF THE ASSET OF THE FUND. (2) (8)
ALL THE INSTRUMENTS REFERRED TO IN THIS ARTICLE, EXCEPT BANK DEPOSITS AND PRE-VIEWING SECURITIES, SHALL BE REGISTERED IN A NATIONAL STOCK EXCHANGE; COMPLY WITH THE REQUIREMENTS SET OUT IN THE RESPECTIVE SECURITIES EXCHANGE SECURITIES MARKET LEGISLATION, HAVING UNDERGONE A RISK CLASSIFICATION PROCESS, BEING WITHIN THE MINIMUM CLASSIFICATION ESTABLISHED BY THE RISK COMMISSION WHERE APPROPRIATE, AND GOVERNED BY THE PROVISIONS OF THE INVESTMENTS. (2) (8)
THE DEPOSITS AND SECURITIES REFERRED TO IN POINT (h) OF THIS ARTICLE WHOSE MATURITY IS LESS THAN ONE YEAR SHALL HAVE A CEILING OF 50% OF THE LIMIT SET BY THE RISK COMMISSION FOR THOSE INSTRUMENTS. (2) (8)
SECURITIES ISSUED BY THE GENERAL TREASURY MANAGEMENT AND BY THE CENTRAL RESERVE BANK OF EL SALVADOR ARE EXEMPTED FROM THE RISK CLASSIFICATION. (7) (8)
THEY SHALL BE INCLUDED IN THE ASSETS OF THE PENSION FUNDS, THE TRANSFER CERTIFICATES AND SUPPLEMENTARY TRANSFER CERTIFICATES, FROM THE MOMENT THEY ARE DELIVERED BY THE ISSS AND THE INPEP TO THE MANAGING INSTITUTIONS. THEY SHALL NOT BE SUBJECT TO ANY MAXIMUM INVESTMENT LIMIT OR THE RISK CLASSIFICATION REQUIREMENT; THEY SHALL ONLY BE REQUIRED TO BE REGISTERED IN A NATIONAL STOCK EXCHANGE WHEN THEY ARE INTENDED TO BE TRADED. THE TITLE OF THE GUARANTEE SHALL NOT BE TAKEN INTO ACCOUNT FOR THE PURPOSES OF CALCULATING THE SPECIAL SECURITY CONTRIBUTION REFERRED TO IN ARTICLE 84 OF THIS ACT. (8)
Art. 92. IN ADDITION TO THE LIMITS REFERRED TO IN THE PREVIOUS ARTICLE, THE RISK COMMISSION SHALL ESTABLISH CEILINGS, WITHIN THE RANGES INDICATED IN THE INVESTMENT REGULATION, FOR THE FOLLOWING INSTRUMENTS:
(a) THE TOTAL OF THE INVESTMENTS IN SHARES ISSUED BY COMPANIES WHOSE INDEBTEDNESS EXCEEDS FIVE TIMES THEIR ASSETS;
(b) THE TOTAL OF THE INVESTMENTS IN INVESTMENT FUND PARTICIPATION CERTIFICATES THE PORTFOLIO OF WHICH IS CONCENTRATED IN MORE THAN FIFTY PER ONE HUNDRED NEW BUSINESS DEVELOPMENT;
c) THE TOTAL INVESTMENTS IN THE INSTRUMENTS REFERRED TO IN LITERALS (e), (f), (j), (k) AND (l) OF THE PRECEDING ARTICLE, THE ISSUER OF WHICH HAS LESS THAN THREE YEARS OF OPERATION; AND
(d) OTHER THAN DETERMINED BY THE RISK COMMISSION. (2)
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In any case, the sum of the investments in the instruments mentioned in this article will be restricted to a maximum investment limit to be set between five and fifteen percent of the value of the Fund.
Issuer and Emission Diversification
Art. 93. THE RISK COMMISSION SHALL ESTABLISH THE CEILINGS, WITHIN THE RANGES LAID DOWN IN THE INVESTMENT REGULATION, FOR THE TOTAL INVESTMENTS OF A PENSION FUND IN CERTIFICATES OF DEPOSITS AND SECURITIES ISSUED OR GUARANTEED BY A SAME ENTITY OR BUSINESS GROUP, AS WELL AS THE INVESTMENT LIMITS OF A FUND IN SECURITIES OF THE SAME ISSUE, CERTIFICATES OF PARTICIPATION OF THE SAME MUTUAL FUND AND DIRECT OR INDIRECT INVESTMENTS IN SHARES OF A COMPANY.
EXCEPT FOR THE PROVISIONS MENTIONED IN THIS ARTICLE, INVESTMENTS IN SECURITIES ISSUED OR GUARANTEED BY THE GENERAL TREASURY MANAGEMENT, THE CENTRAL BANK OF RESERVE OF EL SALVADOR, SOCIAL FUND FOR HOUSING AND BANK MULTISECTORAL INVESTMENT.
FOR THE PURPOSES OF THIS LAW, THE DEFINITION OF A BUSINESS GROUP IS THAT ESTABLISHED IN THE SECURITIES MARKET LAW. (2)
Linked Societies
Art. 94. Where two or more Pension Funds are administered by related companies, the limits set out in this Law shall be understood as governing the sum of the investments of all the Funds administered by the related companies.
For the purposes of this provision, related companies shall be understood to be established in the Securities Market Act.
Excesses in Limits or Incompliance with Investment Requirements
Art. 95.-Where, for any reason, an investment is made with the resources of the Pension Fund exceeding the limits or no longer meets the requirements laid down, the excess shall be entered in a special account in the Fund concerned and The Administrative Institution may not make additional investments in the same instrument as long as such situation is maintained. In addition, the Superintendence of Pensions will apply the administrative penalties that come according to its Law and to this.
The investment excesses must be settled within 90 days, which may be extended according to the provisions of a special regulation laying down the conditions and procedures for the disposal, taking into account the causes of the non-compliance, the liquidity of the financial instrument and the market conditions stock.
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SECURITIES TRANSACTIONS (8)
Art. 96.-ALL SECURITIES TRANSACTIONS MADE WITH THE RESOURCES OF A PENSION FUND MUST BE MADE WITHIN A NATIONAL STOCK EXCHANGE, BOTH ON THE PRIMARY AND SECONDARY MARKETS. NOTWITHSTANDING THE FOREGOING, IT MAY CARRY OUT OPERATIONS OUTSIDE THE REGULATED SECURITIES MARKETS IN THE CASE OF THE THIRD SUBPARAGRAPH OF THIS ARTICLE AND ACQUIRE THE SECURITIES OF THE GENERAL TREASURY MANAGEMENT, THE CENTRAL RESERVE BANK OF THE SALVADOR, THE ISSS AND INPEP, IN RESPECT OF THE PRE-VIEWING SECURITIES ISSUED BY THEM; THOSE CASES WHICH EXERCISE THE PREFERENTIAL RIGHT OF SUBSCRIPTION OF SHARES, IN THE EVENT OF CAPITAL INCREASE BY CAPITALIZATION OF RESERVES OR PROFITS; AND THE LITERAL m) FROM ART. 91 OF THIS ACT.
THE ABOVE MENTIONED ARTICLE WILL NOT BE APPLICABLE TO THE PRE-VIEWING TITLES THAT THE ADMINISTRATIVE INSTITUTIONS RECEIVE IN RECOGNITION OF RIGHTS, AS STATED IN ARTICLE 229 OF THIS LAW, WHICH WILL BE RECEIVED DIRECTLY FROM THE ISSUERS. WHERE SUCH SECURITIES HAVE BEEN AWARDED TO THE PENSION FUND, WHERE THE PENSION FUND HAS NOT BEEN NEGOTIATED, IF THE MEMBERS OR THEIR BENEFICIARIES OPT FOR THE FORM OF PENSION FOR LIFE INCOME, IT SHALL BE TRANSFERRED FROM THE PENSION FUND TO THE PENSION FUND. INSURANCE COMPANY OF PERSONS ELECTED, THE AMOUNT VALUED AT THE DATE OF THEIR TRANSFER.
WHEN THE MANAGING INSTITUTIONS INVEST RESOURCES FROM THE PENSION FUNDS, WITH THE AIM OF PROTECTING THE INTERESTS OF THE MEMBERS, THEY MAY CONCLUDE CONTRACTS WITH THE ISSUERS OF SECURITIES, UNDER THE FOLLOWING TERMS:
a) THE ISSUER SHALL HAVE AN OBLIGATION TO PURCHASE OR REPLACE THE PENSION FUND WITH THE SECURITIES THAT HAVE BEEN ACQUIRED, IF THE AGREED CONDITIONS ARE MET;
(b) ESTABLISH THE PURCHASE PRICE REFERRED TO IN THE PRECEDING SUBPARAGRAPH OR, FAILING THAT, THE MECHANISM FOR CALCULATING THAT PRICE OR THE MECHANISMS FOR PERFORMING THE SUBSTITUTION; AND,
c) SET THE TIME LIMIT FOR SUCH PURCHASE OR REPLACEMENT TO BE COMPLETED, AS WELL AS THE WAY IN WHICH IT WILL BE EXECUTED.
THE CONTRACTS REFERRED TO IN THE PRECEDING PARAGRAPH, BEFORE THEIR SUBSCRIPTION, MUST BE MADE OF THE KNOWLEDGE OF THE SUPERINTENDENCE OF PENSIONS, IN ORDER TO SUBMIT IT TO THE AUTHORIZATION OF THE COMMISSION OF RISK, WHICH WILL HAVE FIFTEEN DAYS FOR RESOLVE.
THE SUPERINTENDENCY OF PENSIONS WILL HAVE THE POWER TO AUDIT THE OPERATIONS CARRIED OUT WITH THE RESOURCES OF THE PENSION FUNDS IN ORGANIZED MARKETS, WITHOUT PREJUDICE TO THE ATTRIBUTIONS THAT CORRESPOND TO THE SUPERINTENDENCE OF RESPECTIVE SECURITIES OR REGULATORY ENTITIES.
FOR THE PURPOSES OF THIS LAW, THE PRIMARY MARKET AND SECONDARY MARKET SHALL BE UNDERSTOOD AS DEFINED IN THE SECURITIES MARKET LAW. (2) (8)
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Fund Investment Policy
Art. 97.-Within the limits established for the investment of the Funds, each Administrative Institution shall be free to design the investment policy of the Fund it administers, which shall be kept at the disposal of the public. This policy should include, inter alia, the proportion of investments in medium-and long-term securities to finance capital formation and the acquisition of housing with resources from the Pension Fund. The Superintendence of Pensions will determine the minimum elements that the investment policy will have to contain.
The external auditors in ruling on the financial statements of the Administrative Institutions, must also decide on the compliance of those institutions with their investment policy.
Bans
Art. 98.-THE PENSION FUND ASSET MAY NOT BE INVESTED IN SHARES OF:
(a) PENSION FUND MANAGEMENT INSTITUTIONS;
(b) INSURANCE CORPORATIONS;
(c) INVESTMENT FUND MANAGEMENT COMPANIES;
(d) RISK CLASSIFICATION SOCIETIES;
e) STOCK EXCHANGES;
f) BROKERAGE HOUSES;
g) CUSTODY AND SECURITIES HOLDING COMPANIES, AND
h) SECURITIATIVE SOCIETIES. (2)
Likewise, the resources of the Pension Funds may not be invested in operations of reporting or deporting with any value.
In addition, the Administrative Institutions may not grant or endorse loans to their shareholders.
Prohibition of investments in related societies
Art. 99.-The Administrative Institutions may not invest, with resources of the Fund they administer, in securities issued or guaranteed by themselves or by their subsidiaries or by legal persons directly or indirectly related to the property or administration of the respective Administrative Institution. For these purposes, they will be considered related when owning a minimum of property
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would share three percent of the capital of the Administrative Institution, including shares of the spouse and relatives in the first degree of consanguinity, in the case of natural persons, and the administration shall be limited to that exercised by the directors or managers of the entity. No related persons are considered to be self-employed institutions or public undertakings.
Related transactions shall also be considered to be related to the acquisition of securities issued or guaranteed by companies whose ownership is in any of the following circumstances:
1. The companies in which a shareholder of the Administrative Institution, his spouse and relatives in the first degree of consanguinity, hold ten percent or more of the shares with the right to vote, and at least three percent of the shares of the Administrative Institutions;
2. The company in which a director or manager of the Administrative Institution, his or her spouse or first-degree relatives of consanguinity holds ten percent or more of the voting shares;
3. The society in which two or more directors or managers of the Administrative Institution, their spouses or relatives in the first degree of consanguinity, together have twenty-five percent or more of the actions;
4. The company in which the shareholders, directors or managers of an Administrative Institution, their spouses or relatives in the first degree of consanguinity, jointly hold twenty-five percent or more of the shares, and ten percent or more of the shares. the actions of the Administrative Institution concerned;
5. The Fund may not be invested in a Company that is owned by ten percent or more of another, in which the shareholders owned by three percent or more of the Administrative Institution, the directors or directors of the Managing institution own, individually or jointly, ten percent or more of the shares of the second company in reference.
The Administrative Institutions are prohibited from acquiring, with the resources of the Fund, the values of the persons related to this article, which have as their object the development or disposal of any real estate title. Also, the Fund's resources may not be invested in securities issued or guaranteed by companies in which the Administrative Institution has an equity stake.
However, the Administrative Institutions may to invest the Pension Fund resources that they administer in certificates of deposit and securities issued by related banks and financials, up to a total of ten percent of the fund's asset, in turn the investment should not exceed five Percent of the bank's or financial asset, whichever is higher, and whenever it meets the rest of the investment limits. In addition, a related bank and financial institution will be able to carry out the duties of collection to the Administrative Institution through deposit in sight.
The external auditors, when issuing their opinion on the financial statements of the institutions Administrators will indicate in separate note on compliance with this provision.
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The Administrative Institutions must keep a record of natural and legal persons related to their property and administration, and must provide the respective information to the Pension Superintendence at least quarterly.
The Superintendence of Pensions will establish the technical provisions that allow the application of this article.
Responsibility for the investments
Art. 100.-The directors of an Administrative Institution, its managers, administrators and, in general, any person who, by reason of its position or position, has access to information concerning the operations, policies and investment strategies of the Funds must be kept absolute in relation to these issues until such information has a public character.
The persons referred to in the foregoing paragraph shall be prohibited directly or indirectly from the information reserved, to obtain for themselves or for others, other than the Pension Fund, advantages through the purchase or sale of securities.
Art. 101.-The Administrative Institutions must take all steps that the respective legal provisions applicable to them allow and with the diligence that they employ ordinarily in their own businesses, for the precautionary administration of the companies and the Investment Funds in which they invest the Pension Fund they manage, in order to ensure the adequate return on their investments.
Art. 102.-The Administrative Institutions may not carry out transactions of instruments at prices far from those recorded on the primary and secondary market which are detrimental to the value of the Fund, otherwise they will have to re-establish the difference with own resources. The methodology for determining these cases will be established in the Investment Regulation.
Managing current accounts
Art. 103.-Each Administrative Institution must operate with bank checking accounts for the exclusive management of the resources of the Pension Fund it administers, in which the contributions of the members, the product of the The withdrawals from the Fund and the value of the Special Guarantee Fund.
The withdrawals from these accounts shall be the sole purpose of the acquisition of securities for the Fund, the payment of benefits, commissions, transfers and transfers that establishes this Law.
Each Administrative Institution may have current accounts up to a maximum of ten percent of the Pension Fund asset it administers, in accordance with the provisions of the Investment Regulation.
CHAPTER IX OF THE BENEFICIARIES AND CAUSES
Pensions old age
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Art. 104.-System members shall be entitled to an old-age pension when any of the following conditions are met:
(a) Where the balance of the individual pension savings account is sufficient to finance an equal or equal pension more than sixty percent of the Basic Regulatory Wage defined in Article 122 of this Law, which at the same time is equal to or greater than one hundred and sixty percent of the minimum pension referred to in Chapter XII of this Title.
b) REPEALED (5) ** DECLARED UNCONSTITUTIONAL
AUTHENTIC INTERPRETATION
DECREE No. 523
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,
CONSIDERING:
I. That by Legislative Decree No. 927, dated December 20, 1996, published in Official Journal No. 243, Volume No. 333 of the 23rd of the same month and year, the Law of the System of Savings for Pensions was issued.
II. That by Legislative Decree No. 347, dated June 15, 2004, published in Official Journal No. 128, Volume No. 364 of July 9 of the same year, the literal b) of Article 104 and literal b) and the second paragraph of Article 200 of the Law were repealed. mentioned in the previous recital.
III. That the repealed literals and points allow access to an old age pension, to persons who register a period of 30 years of contributions or who at the date of entry into operations of the Pension Savings System will register thirty years of quotes or more, in both cases, regardless of age.
IV. That the Decree mentioned in the second recital of this Decree will enter into force on 1 January 2005. However, the same is being interpreted by the different institutions charged with making it effective with different criteria, which is creating uncertainty in the members of the Pension System that meet the requirements of 30 years of services, and who intend to retire.
V. That the spirit of this Assembly was that persons who meet the requirements before 1 January 2005, in accordance with the law in force, will not need to exercise such right before 31 of
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December 2004.
VI. That, in view of the above, it is necessary to interpret authentically what is established in Article 1 of Legislative Decree No. 347 before, in order to establish that persons who meet the requirements to be penalized by Regardless of age at December 31, 2004, they can exercise such a right.
BY TANTO:
in use of its constitutional powers and on the initiative of the Deputies: Alejandro Dagoberto Marroquín, Juan Miguel Bolanos and José Mauricio Quinteros.
DECRETA:
THE NEXT AUTHENTIC INTERPRETATION OF ARTICLE 1 OF THE LEGISLATIVE DECREE No. 347, DATED JUNE 15, 2004, PUBLISHED IN THE OFFICIAL JOURNAL No. 128, TOO No. 364 OF 9 JULY OF THE SAME YEAR, ASI.
Art. 1. It shall be understood that the members who, as at 31 December 2004, meet the requirements for pensionable age regardless of age, in accordance with the provisions of Article 104 (b) and (b) and (b) and (b) Article 200 of the Pension Savings System Act may exercise such right, even after December 31, 2004.
This authentic interpretation is incorporated into the text of the Pension Savings System Act.
Art. 2. This Decree shall enter into force eight days after its publication in the Official Journal.
GIVEN IN THE LEGISLATIVE PALACE. San Salvador, at twenty-five days of November of the year two thousand four.
D. O. No. 240 Took Nº 365 Date: December 23, 2004
c) When men, or 55 years of age, have been 60 years of age, women, provided that they record at least twenty-five years of contributions, continuous or discontinuous.
If the ages referred to in literal (c) of this article are fulfilled, the affiliates do not exercise their right and are invalidated or failed, they shall only be creditors, they or their beneficiaries, to the equivalent of the old age pension at that time, freeing the Administrative Institution of any responsibility for these risks.
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When pensions are generated for compliance with the requirements set out in literal (a) This article shall be considered as early-age pensions, which shall not be an accretive of the state guarantee of minimum pension.
Art. article before the age of the ages laid down in the literal (c) is considered as early-age pensions. 105.-THEY SHALL BE ENTITLED TO AN INVALIDITY PENSION, NON-PENSIONERS WHO, WITHOUT COMPLYING WITH THE AGE REQUIREMENTS FOR ACCESS TO AN OLD AGE PENSION, SUFFER A LOSS OF CAPACITY TO EXERCISE ANY JOB AS A RESULT OF ILLNESS, COMMON ACCIDENT OR WEAKENING OF THEIR PHYSICAL OR INTELLECTUAL FORCES, NOT SO THAT THEY ARE INVALIDATED BY PROFESSIONAL RISKS.
PENSIONS MAY BE TOTAL OR PARTIAL, ACCORDING TO THE FOLLOWING:
(a) TOTAL INVALIDITY PENSION, FOR MEMBERS WHO SUFFER THE LOSS OF AT LEAST TWO THIRDS OF THEIR WORK CAPACITY; AND
(b) INVALIDITY PENSION PARTIAL, FOR MEMBERS SUFFERING THE LOSS OF THEIR WORKING CAPACITY EQUAL TO OR GREATER THAN FIFTY PER CENT AND LESS THAN TWO THIRDS.
WHEN THE PENSIONER WITH TOTAL INVALIDITY REQUIRES, IN THE OPINION OF THE COMMISSION OF INVALIDITY, THE ASSISTANCE OF A PERSON TO CARRY OUT THE ORDINARY ACTS OF DAILY LIFE, 20% OF THE PENSION SHALL BE GRANTED IN ADDITION Corresponding.
THE INVALIDITY RATING COMMISSION REFERRED TO IN ARTICLE 111 OF THIS LAW, HEREINAFTER REFERRED TO AS THE QUALIFYING COMMISSION, SHALL VERIFY COMPLIANCE WITH THE ABOVE REQUIREMENTS WHEN THE MEMBER IS PRESENT APPLICATION AND SHALL ISSUE A FIRST INVALIDITY OPINION.
AFTER THREE YEARS OF THE FIRST OPINION GIVING RISE TO THE RIGHT TO A PENSION, THE QUALIFYING COMMISSION SHALL ISSUE A SECOND OPINION RATIFYING OR AMENDING THE FIRST OPINION.
IF BEFORE THE DEADLINE RELATED IN THE PREVIOUS PARAGRAPH THE INVALID AFFILIATE MEETS THE AGE TO BE PENSIONED FOR OLD AGE, AGGRAVATES HIS OR HER DISABILITY SITUATION OR ENDS THE RIGHT TO RECEIVE A PENSION, YOU MAY REQUEST FORWARD TO THE QUALIFYING COMMISSION, THROUGH THE RESPECTIVE MANAGING INSTITUTION, TO PROCEED WITH THE SECOND OPINION.
TO EFFECT THE SECOND OPINION, THE RATING COMMISSION WILL QUOTE THREE TIMES THE AFFILIATE THROUGH THE MANAGING INSTITUTION, IN WRITTEN FORM, ON THE PAYMENT DATES OF EACH OF THE LAST THREE PENSIONS. IF THE AFFILIATE DOES NOT APPEAR WITHIN THIRTY DAYS OF THE LAST CITATION, THE PENSION SHALL BE SUSPENDED. IF IT IS NOT SUBMITTED WITHIN A PERIOD OF SIX MONTHS, ESTABLISHED IN THE SAME WAY, IT SHALL BE UNDERSTOOD THAT THE INVALIDITY HAS CEASED.
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WILL BE ENTITLED TO TOTAL INVALIDITY PENSION, AFFILIATES DECLARED INVALID BY A SECOND OPINION WHICH HAS NOT RECEIVED AN OLD AGE PENSION AND WHICH DOES NOT MEET THE AGE REQUIREMENTS REFERRED TO IN ARTICLE 104 (C) OF THIS LAW, PROVIDED THAT ITS CAPACITY FOR WORK HAS BEEN LOST AT LEAST TWO THIRDS. FOR THIS PURPOSE, THE PARTIAL INVALIDITY PENSION OF THE SECOND OPINION SHALL REQUEST SUCH A QUALIFICATION FROM THE QUALIFYING COMMISSION.
IF, AFTER SIXTY WORKING DAYS, THE RATING COMMISSION HAS NOT ISSUED THE OPINION, THE RESOLUTION SHALL BE PRESUMED TO BE IN FAVOUR OF THE REQUEST, UNLESS OTHERWISE PROVED. (2)
Survival Pensions
Art. 106.-MEMBERS OF THE FAMILY GROUP OF THE MEMBER WHO DIES BY COMMON ILLNESS OR ACCIDENT SHALL BE ENTITLED TO A SURVIVOR ' S PENSION, ON THE UNDERSTANDING OF HIMSELF, THE SPOUSE, THE NON-MARITAL UNION OR THE SURVIVOR OF UNION IN ACCORDANCE WITH THE ARTICLE 118 OF THE FAMILY CODE, THE CHILDREN OUTSIDE OR WITHIN THE MARRIAGE, THE ADOPTIVE CHILDREN AND THE PARENTS, LEGITIMATE OR ADOPTIVE, WHO ARE ECONOMICALLY DEPENDENT ON THE DECEASED.
EACH AFFILIATE MUST DECLARE TO THE RESPECTIVE MANAGING INSTITUTION, IN THE FORMS PROVIDED BY IT FOR SUCH PURPOSES, THE NAMES, DATES OF BIRTH AND DEGREES OF PARENTAGE OF ITS EVENTUAL BENEFICIARIES, RESPECTING THE SET OUT IN THE FIRST POINT OF THIS ARTICLE.
THE MANAGING INSTITUTIONS SHALL EACH YEAR IN JUNE, PROVIDE THE AFFILIATE, UPDATE THE INFORMATION WITH RESPECT TO ANY BENEFICIARIES, PROVIDE THE MEMBERS WITH THE CORRESPONDING FORMS, AND THE ADVICE NECESSARY FOR THIS PURPOSE, THE LACK OF DECLARATION OR UPDATE OF SUCH INFORMATION, WILL NOT AFFECT THE RIGHTS OF THE SURVIVING BENEFICIARIES, WHO IN THE FRAMEWORK OF THIS ARTICLE CHECK THIS QUALITY. (7)
Art. 107.-IN THE CASE OF NON-MARITAL UNION, THE SURVIVOR ' S PENSION, IN THE CASE OF NON-MARITAL UNION, SHALL BE ESTABLISHED AT LEAST THREE YEARS OF COMMON LIFE.
HOWEVER, IF AT THE DATE OF DEATH OF THE AFFILIATE, THE SURVIVOR IS PREGNANT OR THERE ARE CHILDREN IN COMMON, OR IF HE OR THE SURVIVOR IS INVALID ACCORDING TO THE OPINION OF THE QUALIFYING COMMISSION, SHE SHALL BE ENTITLED TO A PENSION OF SURVIVAL REGARDLESS OF COMPLIANCE WITH THE CONDITIONS OUTLINED IN THIS ARTICLE. (2)
Art. 108.-Children who meet any of the following requirements shall be entitled to a survivor's pension:
a) Being under 18 years of age;
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b) Be students of basic, average, technical or higher education and ages 18 years of age age and 24 years; and
c) Being invalid, whatever your age, for which you will have to submit to an opinion of the Qualifying Commission. You will also be entitled if the invalidity occurred after the death of the parent, but before the maximum ages mentioned in the literals (a) or (b) of this article, as appropriate.
Art. 109.-The Superintendence of Pensions will define by regulation, the condition of economic dependence of the beneficiary parents with respect to the affiliate that dies.
Inheritance
Art. 110.-The balance of the individual pension savings account shall form part of the succession of a non-pensioned affiliate who dies, in the following cases:
a) When the date of his death is not recorded in beneficiaries with the right to a survivor's pension; or
b) When the latter is to be entitled to the survivor's pension; or
c) When he dies from occupational risks.
IF AFTER 10 YEARS OF THE DEATH OF THE MEMBER NOT OF A PENSION OR OF THE DATE ON WHICH I SHALL CEASE TO BE A BENEFICIARY, THE LAST ONE ENTITLED TO A PENSION THE BALANCE OF THE INDIVIDUAL PENSION SAVINGS ACCOUNT WILL BECOME PART OF THE GENERAL FUND OF THE NATION TO COVER THE COSTS OF PENSION SYSTEMS. (2)
Invalidity Qualifier Commission
Art. 111.-The determination of the right to an invalidity pension shall be the responsibility of a Qualifying Commission of Invalidity, the main function of which shall be to determine the origin of the disease or accident, common or professional, and to qualify the
The Validity Qualifier Commission will be composed of three physicians appointed by the Superintendent of Pensions, one of whom must be a physiatrist.
This Commission will be organized and operated in accordance with a special regulation, and shall qualify the applications for invalidity in accordance with the general rules of Invalidity contained in that regulation.
A doctor appointed by the Insurance Company of Persons may attend the sessions of the Qualifying Commission when they are aware of the invalidity qualification of an affiliate whose risk is being covered by them.
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The operating costs of the Qualifying Commission will be in charge of the Superintendence of Pensions including the fees of the doctors who are members of the same.
The affiliate who applies for an invalidity qualification must submit to the examinations required by the Qualifying Commission. The costs of examinations, analyses, reports and transfer costs required by the decision of the first and second invalidity opinions shall be borne by the managing institution to which the applicant is attached.
Case, the Qualifying Commission may request the Salvadoran Social Security Institute, the institutions of the Ministry of Public Health and any other institution of public health, autonomous or private the information of the medical records of the affiliate to make the corresponding opinions.
Institutions and physicians specialists
Art. 112.-The Qualifier Commission for its opinion may hire institutions and medical specialists to complete the history of each case. These doctors and institutions will be authorized by the Superintendence of Pensions to provide their services to the Qualifying Commission according to the respective regulations. The payment of the fees of medical specialists will be financed by the Administrative institutions according to the number of members who apply for an invalidity pension in each of them.
Recorder to the Qualifying Commission
Art. 113.-The opinions of the Qualifying Commission may be subject to complaints by the affiliate, the Administrative Institution or the Insurance Company of the respective Persons. The claim will be made in writing to the Qualifying Commission within 15 working days of the notification of the opinion in question.
To resolve the claims, the Qualifying Commission may require further examinations in the Sixty-day period, which shall be financed by the claimant. Notwithstanding the foregoing, if the claimant is the affiliate, the latter shall finance 20% of the total expenses and the remaining 80% shall be the responsibility of the Administrative Institution. DECLARED UNCONSTITUTIONAL
If the claim is based on the fact that the invalidity comes from professional risks, the Qualifying Commission will expand with a physician appointed by the Salvadoran Social Security Institute. This Commission will address this, after hearing the parties and completing the necessary background, within a period of 10 working days.
To resolve the origin of the invalidity, the Qualifying Commission may require the employer to any background and information you deem necessary. If the employer does not provide the requested within 15 working days from the date on which the request is notified, the employer shall be punished with a fine equivalent to five minimum wages, which shall be increased by the equivalent of a minimum wage. minimum wage for each business day spent the deadline to obtain the information.
When the Extended Qualifier Commission resolves the claim and defines the origin of the invalidity,
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will notify stakeholders of the resolution. If the origin of the invalidity is found to be a professional risk, the pension shall be paid by the Salvadoran Social Security Institute and the refund of the payments made previously by the Administrative Institution; if A common sickness or accident, the Administrative Institution shall continue to pay the benefits in accordance with this Law.
The invalidity pension occasioned by professional risk shall cease when the member complies with the law. with the legal age to be pensioned by old age or when it dies, at which time it will be process the respective benefit in the Pension Savings System or the Public Pension System, as appropriate.
Technical Commission to approve the General Rules of Invalidity
Art. 114.-The Regulation containing the General Rules of Invalidity with which the Qualifying Commission will decide the right to an invalidity pension, will be prepared by the Superintendence of Pensions and submitted for review and opinion to a Technical Commission to be made up of the President of the Qualifier Commission, a designated by the Administrative Institutions, one by the Insurance Company of Persons, one by the Salvadoran Social Security Institute, and another by the National Institute for Pensions of Public Employees, Dean of the Faculty of Medicine of the University of El Salvador and the Dean of a Faculty of Medicine designated by the Private Universities.
Any modification proposed by the Superintendence, by the Administrative Institutions, Insurance Companies or the Commission Qualifier, you must be subject to the procedure outlined above.
Invalidity Pension Incompatibility
Art. 115.-Invalidity pensions and disability benefits granted by the General Conditions of Disease, Maternity and Professional Risks of the Salvadoran Social Security Institute will be incompatible with pensions.
Financing of PENSIONS
Financing
Art. 116.-The old-age, common invalidity and survival pensions referred to in this Law shall be financed by the following components, as the case may be:
1. The accumulated balance in the individual pension savings account;
2. The Certificate of Transfer, when it exists in accordance with Title III of this Law;
3. The state guarantee, where applicable; and
4. The special contribution referred to in Article 123 of this Law.
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In addition, the survival pensions that are caused by an unfunded affiliate and the Invalidity pensions granted by second opinion shall be financed with an additional contribution called the supplementary capital of responsibility of the Administrative Institution, in accordance with the provisions of the Law. For these purposes, the supplementary capital shall be deemed to be entitled to the supplementary capital, the member of which meets any of the following requirements:
a) Which is listed and which has been listed for at least six months during the 12 months prior to the date of death or invalidity, or
b) Who, having ceased to be listed within the period of 12 months before the date of his death or the occurrence of invalidity according to the first opinion, has registered six months of contributions the year before the date it ceased to be listed.
They will also be financed with the Supplementary capital pension for the survival caused by those affiliated with invalidity pensioners who die in the period between the first and second opinions, or are within the six-month period of the summons to resolve the second opinion, provided that they comply with the literals a) or b) outlined in the previous paragraph.
Liability for Invalidity Pensions
Art. 117.-Each Administrative Institution shall be responsible for the payment of the partial or total invalidity pensions granted to its members by the first opinion, when the non-pensioner is at the time of invalidity within the of the conditions of literals a) or b) of the second indent of the previous article.
Otherwise, they shall be financed only with the components expressed in the first paragraph of the previous article, as appropriate.
Capital Supplemental
Art. 118.-For the purposes of financing invalidity and survivor's pensions in accordance with the provisions of the preceding Articles, the supplementary capital shall be paid to the respective individual pension savings account and shall be for the difference between:
a) The necessary technical capital determined in accordance with Article 119 of this Law, and
b) The accumulated capital in the individual's individual pension savings account, except for voluntary contributions and its profitability, plus the Certificate of Transfer, to the date on which the opinion is executed the invalidity or date of the death, depending on the benefit that corresponds to it.
When the aforementioned difference throws a negative value, the supplementary capital will be equal to zero.
If in the 12-month period after the New beneficiaries will have to be resubmitted, the supplementary capital must be recalculated in accordance with this Law. Due to this deadline, beneficiaries who will present their right to receive survival pension on the basis
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of the supplementary capital already calculated.
The right to supplementary capital will not operate where members who have exercised the right to an old-age pension are invalidated or otherwise die.
In cases where the affiliate has been declared invalid in part by the second opinion, the supplementary capital shall be calculated without the inclusion of the part of the balance corresponding to the retained fund referred to in Article 138 of this Act.
Required Technical Capital
Art. 119.-The necessary technical capital shall be determined as the expected present value of the reference pensions of the deceased and his beneficiaries as from the date on which the second invalidity opinion is executed or the death occurs, and until the termination of the pension entitlement of each of the accredited beneficiaries.
The necessary technical capital shall be determined in accordance with the technical bases laid down in the provisions for which the Pension Superintendence.
Reference Pensions
Art. 120.-For the calculation of the necessary technical capital and for the payment of invalidity pensions in accordance with the first opinion, the reference pension of the deceased shall be determined as a percentage of the basic salary applicable for any time of the service provided by the affiliate. The reference pensions shall be equivalent to:
a) 70% of the basic statutory salary, in the case of members who die or who are entitled to receive full invalidity pension; and
b) 50% of the basic statutory salary, in the case of members entitled to receive partial invalidity pension.
Art. 121.-THE PENSION OF THE BENEFICIARIES OF SURVIVOR ' S PENSION SHALL BE EQUAL TO THE FOLLOWING PERCENTAGES OF THE REFERENCE PENSION OF THE DECEASED:
(a) 60% FOR THE SPOUSE, FOR HIM OR THE SURVIVOR, IF THEY DO NOT EXIST CHILDREN ENTITLED TO A PENSION;
b) 50% FOR THE OR THE SPOUSE OR FOR THE SURVIVOR, WITH CHILDREN ENTITLED TO A PENSION. THIS PERCENTAGE WILL BE RAISED TO 60% WHEN SUCH CHILDREN CEASE TO BE ENTITLED TO A PENSION;
c) 25% FOR EACH CHILD ENTITLED TO A PENSION; AND
d) 20% FOR THE PARENT AND 20% FOR THE MOTHER, OR 30% IF ONLY ONE OF THEM EXISTS WITH RIGHT TO PENSION.
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WHEN THERE IS NO SPOUSE OR SURVIVOR ENTITLED TO A PENSION, THE PERCENTAGE ESTABLISHED IN THE (B) SHALL BE DISTRIBUTED AMONG THE CHILDREN ENTITLED TO A PENSION.
WHEN THERE IS NO SPOUSE OR SURVIVOR, OR CHILDREN ENTITLED TO A PENSION, THE PERCENTAGES LAID DOWN IN THE LITERAL (D) SHALL BE 40% FOR THE FATHER AND 40% FOR THE MOTHER, OR 80% IF ONLY ONE IS ENTITLED TO A PENSION.
IN NO CASE, THE SUM OF THE REFERENCE PENSIONS SHALL EXCEED 100% OF THE REFERENCE PENSION OF THE DECEASED; IN CASE OF EXCEEDING THAT PERCENTAGE, THE WEIGHTING SHALL BE MADE BASED ON THE PERCENTAGES SET OUT IN THIS ARTICLE. (2)
Regulatory Basic Salary
Art. 122.-The basic salary of each affiliate shall be estimated as the monthly average of the base income of the last one hundred and twenty months quoted, prior to the month in which the death occurs, the invalidity is declared or the the requirements for access to an old age pension.
For workers whose membership period is less than one hundred and twenty months established, the basic salary shall be determined by considering the period between the month of affiliation and the month before the month in which the death occurs, the invalidity is declared or the requirements for old-age pension are met. In this case, the sum of the monthly contribution base income shall be divided by the largest number of 24 to the number of months quoted.
For those workers who in the calculation period of the basic salary would have been If you have received an invalidity pension or disability allowance, these will be considered to be the basis of contribution in the period in which the insured person received them.
The basic contribution income used to calculate the basic salary regulator will be updated with the variation of the Consumer Price Index, reported by the authorities concerned, in accordance with the provisions of the Pension Superintendence.
Special contribution
Art. 123.-The representative amount of the contributions that the affiliate would have accumulated in his individual pension savings account, if he would have paid 10% on the amount of the paid invalidity pensions, is defined as a special contribution. according to the first opinion.
The contribution shall be determined as the product of the amount of the pension, the number of months during which it was received and the correction factor 0.111111. The resulting amount must be accumulated in the individual pension savings account.
Special contributions shall be entitled to the members declared invalid by the first opinion, who do not acquire the right to an invalidity pension. by the second opinion, provided that they satisfy the conditions laid down in Article 116 (a) or (b) of this Law, to the date of invalidity.
The Administrative Institution must find out this contribution in the savings account for
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pensions from the moment the second opinion rejecting the invalidity is signed or from the date of the expiration of the six-month period referred to in the fifth paragraph of Article 105 of this Law.
Invalidity and Survival Insurance Contract
Art. 124.-Each Administrative Institution must take out insurance to guarantee the financing of the commitments set out in this Chapter, sufficient to fully support the payment of the additional capital, the special contributions and the payment of the pensions established by the first invalidity opinion.
The contract must be carried out with an Insurance Company that legally operates the class of Persons by means of a public tender that will monitor a delegate of the Superintendence of Pensions, in which established companies may participate and authorised according to the Salvadoran legislation. The technical bases for bidding for this insurance will be established by the Superintendence of Pensions. Each Administrator institution shall be free to determine the criteria for selection and award of the contract in reference.
However, the responsibilities and obligations laid down in this Chapter for the Institutions Administrators are not exempted from the contract of invalidity insurance and survival. Likewise, in the event of the liquidation of a Company of Insurance of Persons with which an Administrative Institution has contracted the insurance of invalidity and the survival of its members, the responsibility of the latter for the payment of the supplementary capital, the special contribution and the payment of the first-opinion invalidity pensions.
Balance of balances
Art. 125.-IF AT THE TIME OF INVALIDATING OR FAILING A NON-PENSIONER AFFILIATE, IT DOES NOT COMPLY WITH THE CONDITIONS LAID DOWN IN ARTICLE 116 (A) OR (B) OF THIS LAW, OR COMPLIES WITH THE CONDITIONS OF LITERALS (a) OR (b) OF THE ARTS. 148 AND 149, RESPECTIVELY, OF THIS LAW, NOR WILL I REGISTER A TOTAL OF SIXTY EFFECTIVE CONTRIBUTIONS IN ANY OF THE TWO PENSION SYSTEMS, THE ACCUMULATED BALANCE, INCLUDING THE CERTIFICATE OF TRANSFER, WILL BE RETURNED TO HIM OR HIS BENEFICIARIES IN A SINGLE AMOUNT OR IN SIX ANNUITIES, DEPENDING ON THE CHOICE OF THE AFFILIATE OR ITS BENEFICIARIES.
IF THE AFFILIATE OR ITS BENEFICIARIES CHOOSE TO HAVE THE BALANCE RETURNED TO THEM IN ANNUITIES, THE PROVISIONS OF THE THIRD AND FIFTH POINTS OF ART. 126 SHALL APPLY TO THEM.
NOTWITHSTANDING THE FOREGOING, AFFILIATES WHO ARE INVALIDATED UNDER THE ABOVE CONDITIONS MAY OPT FOR THE PARTIAL RETURN OF THE BALANCE AND CONTINUE TO BE LISTED TO FUND AN OLD AGE PENSION IN ACCORDANCE WITH THE REQUIREMENTS OF THE LAW. IF THEY CONTINUE TO BE LISTED, THE COMMISSIONS REFERRED TO IN ARTICLE 49 (D) OF THIS LAW SHALL APPLY TO THEM. (8)
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Art. 126.-THE AFFILIATE WHO MEETS THE LEGAL AGE TO BE PENSIONED FOR OLD AGE AND DOES NOT MEET THE TIME REQUIREMENTS OF CONTRIBUTIONS SET FORTH IN ARTS. 104 AND 202 OF THIS LAW, SHALL BE ENTITLED TO THE RETURN OF THE BALANCE OF HIS ACCOUNT AND MAY CHOOSE BETWEEN RECEIVE IT IN A SINGLE PAYMENT OR IN SIX ANNUITIES, ACCORDING TO THE QUOTED TIME.
IF THE AFFILIATE REFERRED TO IN THE PRECEDING PARAGRAPH IS WITHIN THE GROUP ESTABLISHED IN ARTICLE 184-A OF THIS LAW AND HAS MADE CONTRIBUTIONS TO THE PENSION SAVINGS SYSTEM TO EFFECT THE REFUND, IT SHALL BE REQUESTED PREVIOUSLY THE RESPECTIVE TRANSFER CERTIFICATE. IN CASE YOU DO NOT REGISTER CONTRIBUTIONS IN THE PENSION SAVINGS SYSTEM, YOUR MEMBERSHIP CONTRACT WILL BE LEFT WITHOUT EFFECT AND YOUR RESPECTIVE RIGHT IN THE PUBLIC PENSION SYSTEM WILL BE DEALT WITH IN ACCORDANCE WITH THIS LAW.
TO GRANT THE RETURN IN ANNUITIES REFERRED TO IN THE FIRST PARAGRAPH OF THIS ARTICLE, THE BALANCE OF THE INDIVIDUAL ACCOUNT SHALL BE ESTIMATED WITH THE CERTIFICATE OF TRANSFER AND OTHER COMPONENTS OF THE INDIVIDUAL ACCOUNT, AS THE CASE MAY BE, AND SHALL BE DIVIDED BETWEEN SEIS. IN THE SIXTH PAYMENT, THE LAST ESTIMATED ANNUITY SHALL BE ADJUSTED TO RECOGNISE THE RETURN RECORDED TO THE DATE. FOR THIS PURPOSE, A RECORD OF THE ANNUAL RETURNS GRANTED AGAINST THE VALUE OF THE REGISTERED CONTRIBUTIONS AND THEIR PROFITABILITY, IF APPLICABLE, SHALL BE KEPT UNTIL THEIR EXHAUSTION. HOWEVER, IF THE TIME YOU HAVE LISTED IS LESS THAN 6 YEARS, THE REFUND WILL BE MADE IN A SINGLE PAYMENT.
THE VOLUNTARY CONTRIBUTIONS AND THE PROFITABILITY GENERATED BY THEM, MAY BE WITHDRAWN BY THE AFFILIATE AFTER MEETING THE RESPECTIVE REQUIREMENTS AND WILL NOT BE COMPUTED FOR THE PURPOSE OF THE RETURN INDICATED IN THE PREVIOUS PARAGRAPH.
WITH THE RETURN IN ANNUITIES, THE AFFILIATE MAY BE LISTED AS A PENSION TO THE ISSS HEALTH PROGRAM, AS SET OUT IN ARTICLE 214 OF THIS LAW. THE MANAGING INSTITUTION SHALL MAKE THE PAYMENT OF THIS CONTRIBUTION ON A MONTHLY BASIS, AND THE ISSS MUST ESTABLISH THE MECHANISMS TO ENSURE THAT THESE AFFILIATES RECEIVE THE RESPECTIVE COVERAGE DURING THE APPLICABLE PERIOD.
IN ANY CASE, IF THE AFFILIATE COMPLIES WITH THE LEGAL AGE WITHOUT RECORDING THE MINIMUM TIME OF CONTRIBUTIONS, IT MAY CONTINUE TO BE LISTED FOR THE PURPOSE OF MEETING THE REQUIREMENTS OF THE QUOTATION TIME TO ACCESS THE CORRESPONDING BENEFIT OF COMPLIANCE WITH THE LAW.
IF, DURING THE PERIOD IN WHICH THE BALANCE REFERRED TO IN THIS ARTICLE IS RETURNED, THE AFFILIATE DIES, THE BALANCE OF YOUR INDIVIDUAL ACCOUNT SHALL BECOME PART OF THE SUCCESSOR ' S SUCCESSOR.
IN THE CASE OF FOREIGNERS, REGARDLESS OF THEIR AGE, THE BALANCE OF THEIR INDIVIDUAL ACCOUNT WILL BE RETURNED TO THEM OR, AT THEIR REQUEST, WILL BE TRANSFERRED TO THE COUNTRY ' S CAPITALIZATION OF THEIR RESIDENCE, IN WHICH THEY WILL GENERATE THEIR PENSION. (2) (3) (7) (8)
Qualifying insurance company obligations
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Art. 127.-Insurance companies which offer invalidity and survivor insurance contracts as referred to in Article 124 of this Law, as well as for life income and deferred life income treated in Articles 134 and 135 of this Law, respectively, must operate exclusively in the turn of persons ' insurance and shall be subject to the risk classification process in advance, and must comply with the minimum rating determined by the Risk Commission for that purpose.
OLD AGE PENSIONS, COMMON DISABILITY AND SURVIVAL
Modes pension
Art. 128.-When the member complies with all the requirements laid down in this law for a pension, he may have the balance of his individual pension savings account, in order to constitute a monthly income to replace, in part, the income you will no longer receive. The respective Managing Institution will be responsible for verifying compliance with the requirements, recognizing the benefit and issuing the corresponding certification.
Each affiliated or beneficiary entitled to a pension shall be at liberty of choose, except for the exceptions outlined in this Law, among the following pension modalities:
a) Programmed Income;
b) Income Vitality; and,
c) Income Scheduled with Deferred Vitality Income.
Christmas Pension
Art. 129.-In any of the forms of pension payment, the payment of a Christmas pension equal to half of the current pension, granted to all pensioners of the Pension Savings System and payable in the first five business days of December.
Future affiliate information to be penalized
Art. 130.-Members who are close to the pension, or their survivors, who wish to receive offers for their pension, must expressly express it to the respective Administrative Institution. In such a case, the Administrative Institutions must send the anonymous information concerning the members, the Insurance Companies, the persons interested in offering for life income, and the Administrative Institutions interested in offer the scheduled rental service, in order to send their bids, in accordance with the Benefits Regulation. This personal pension tender process will be regulated and audited by the Pension Superintendence.
Scheduled Income
Art. 131.-The pension mode per scheduled income is that the affiliate, at the moment
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of fulfilling the conditions for access to a pension, maintains in an Administrative Institution the balance of your individual pension savings account so that you give you monthly a pension from your account.
The monthly pension per scheduled income will be equal to the result of dividing the account balance every year. individual capital necessary to pay a pension unit to the affiliate and its beneficiaries, where the beneficiary is deceased, according to the corresponding reference pensions, divided into twelve and a half monthly instalments.
The decision to opt for a scheduled income is revocable, so that the pensioner may transfer his balance to another Administrative Institution or move to any of the other modalities set out in Article 128 of this Law, at any time.
However, the scheduled income modality is compulsory for pensions which, estimated in accordance with the second subparagraph, are lower than the minimum guaranteed pension of agreement with this Law.
Dealing with the death of an affiliate whose only survivors are non-disabled children, they must opt for the scheduled income mode.
If the affiliate declared invalid by second opinion with the right to supplementary capital, I shall not opt for any form of pension within the ninety days of the execution of the opinion, it will be understood that it opts for an income programmed with the Administrative Institution, which will be revocable in any time.
Inheritance
Art. 132.-The balance of the individual pension savings account of a pensioner with scheduled income will be part of the affiliate's successor, in the following cases:
a) If the pensioner is deceased without leaving beneficiaries entitled to a survivor's pension; or,
b) When the last person is deceased or will be entitled to the survivor's pension.
The estate's prescription will operate in the form described in the second indent. Article 110 of this Act.
Minimum Free Availability Balance
Art. 133.-The minimum amount of the capital necessary to finance a pension of 70% of the basic salary, which in turn is not less than 160% of the minimum pension in force at the time of the pension, shall be denominated.
If the balance of the account individual will exceed the minimum balance, the remaining balance may be retired
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by the affiliate, in whole or in part, as a surplus of free availability at the time of Frock. Vitality Income
Art. 134.-The form of pension for life income shall be a contract of insurance of persons, by which the affiliate signs a contract with a Society of Insurance of Persons of his choice, obliging him to pay the affiliate a monthly income, more the Christmas pension and, at his death, survivors entitled to a pension according to the Law, from the moment of the subscription of the contract until the expiration of such rights.
The contract must be carried out with a Society of Persons Insurance, established and authorized under the Salvadoran Law, and will be irrevocable. This should be subject to the Benefits Regulation which for this purpose is dictated and subject to the provisions on promotion applied to the Administrative Institutions.
The pension for life income may be contracted in colones or in dollars of the United States of America. The colones will be readjusted annually for the variation of the Consumer Price Index and the contracted in dollars of the United States of North America, according to the Regulation that dictates the Superintendence of Pensions.
This mode of payment of the pension may be contracted provided that the balance of the individual account of the affiliate is sufficient to grant him at least the minimum pension of old age guaranteed by the State. If that is the case, the Administrative Institution shall transfer the total of the balance to the Insurance Company of Persons chosen by the affiliate or the minimum balance required in accordance with the previous Article, in case of access to the free surplus availability.
If the affiliate wishes to increase the pension that it is receiving with the free-availability surplus, it must enter into a second contract with the same Insurance Company.
If the Insurance Company Persons who choose the affiliate to hire the life income is the same as the institution Administrator made the contract of Invalidity and Survival, the Insurance Company will be obliged to enter into the contract and to pay a monthly income not less than the reference pensions established in this Law.
with Deferred Vitality Income
Art. 135.-The mode of payment of Income Pension Program with Income Vitality Deferred is a combination of a programmed income on a temporary basis with a life income. With a portion of the balance of the individual account, it is contracted with a Society of Insurance of Persons, the payment of a constant monthly income, for life and readjustable annually for the affiliate and its beneficiaries, plus the respective pension of Christmas, which will operate from an agreed future date. From the other part of the balance of the account, you are entitled to a scheduled income that the Administrative Institution pays monthly to the pensioner, since it meets the pension requirements until the day before the one in which the payment is initiated
monthly pension that grants the lifetime income may not be less than fifty percent of the first monthly payment of the temporary income, nor more than one hundred percent of that payment.
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The contract must be performed with an established and authorized Persons Insurance Company. According to the Salvadoran Law.
The programmed income in temporary form, will be a flow of monthly payments that will result from matching the part of the balance of the account destined to finance it, with the current value of equal annual payments during the period of the temporary income, updated in accordance with the technical bases which contains the Benefits Regulation. This calculation must be adjusted annually.
The affiliate who will opt for this Deferred Income-Scheduled Income mode will be able to access the surplus of free availability if the constant monthly income contracted with the Company Insurance, discounted the part of the balance intended to pay the temporary scheduled rent, will grant pensions equal to those granted with the minimum balance indicated in article 133 of this Law.
Payment of the enforceable invalidity pension the first opinion
Art. 136.-WHEN THE QUALIFYING COMMISSION MAKES THE FIRST OPINION ON AN APPLICATION WHICH GENERATES THE RIGHT TO AN INVALIDITY PENSION, THE MANAGING INSTITUTION SHALL PAY THE RESPECTIVE PENSION AS THE CASE MAY BE:
(a) IF IT IS OF AN AFFILIATE WHO COMPLIES WITH THE CONDITIONS LAID DOWN IN LITERALS (a) AND (b) OF ARTICLE 116 (2) OF THIS LAW, THE MANAGING INSTITUTION SHALL MANAGE THE PAYMENT IN ACCORDANCE WITH THE PROVISIONS OF THIS LAW AND ITS REGULATIONS. INVALIDITY INSURANCE AND CONTRACTED SURVIVAL AND YOUR PENSION MUST NOT BE LESS THAN ONE HUNDRED PER CENT OF THE REFERENCE PENSION PROVIDED FOR IN ARTICLE 120 OF THIS ACT. THE PERCENTAGE REFERRED TO IN ARTICLE 105 (3) OF THIS LAW SHALL BE INCLUDED IN THE CASES TO WHICH IT APPLIES. IF THE PENSION CORRESPONDING TO THE AFFILIATE IS LESS THAN THE MINIMUM PENSION LAID DOWN IN THIS LAW, THE LATTER MAY CHOOSE TO DO SO BECAUSE THE INSTITUTION ADMINISTERS THAT PENSION, WITH THE BALANCE OF THE PENSION SAVINGS ACCOUNT; AND,
(b) IF THE AFFILIATE IS NOT UNDER THE CONDITIONS SET OUT IN THE PRECEDING PARAGRAPH, THE INSTITUTION SHALL PAY THE SCHEDULED INCOME PENSION. IN THE CASE OF TOTAL INVALIDITY, THE PAYMENT SHALL BE ONE HUNDRED PER CENT OF THE PENSION ESTIMATED IN THIS FORM, AND IN THE CASE OF PARTIAL INVALIDITY, SEVENTY PER CENT. IN BOTH CASES, IT MAY NOT MAKE USE OF THE SURPLUS OF FREE AVAILABILITY UNTIL THE SECOND OPINION IS DELIVERED.
THIS PENSION SHALL BE PAYABLE FROM THE DATE SET OUT IN THE RESPECTIVE REGULATIONS AND SHALL BE MADE PAYABLE FROM THE MOMENT THE FIRST OPINION IS IMPLEMENTED AND UNTIL THE SECOND OPINION IS CARRIED OUT OR UNTIL THE END OF THE PERIOD. SIX MONTHS LAID DOWN IN ARTICLE 105 (7) OF THIS ACT. (2)
Payment of the invalidity pension running the second opinion
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Art. 137.-Executing the second opinion, the affiliate, whether declared invalid in whole or in part, may opt for any of the pension payment modalities set forth in this Chapter.
Fund Held
Art. 138.-If the affiliate has been declared invalid in part by way of the second opinion, for the financing of the pension, thirty percent of the accumulated balance in the savings account for pensions included in the Certificate of Transfer, which will be used to constitute the fund held in an Administrative Institution.
THE RETAINED FUND WILL SERVE TO RECALCULATE THE AMOUNT OF THE PENSION OR TO FINANCE A NEW PENSION, IF THE INVALIDITY IS DECLARED TOTAL OR IF THE MEMBER DIES BEFORE PENSIONABLE FOR OLD AGE OR COMPLYING WITH ANY OF THE CONDITIONS FOR RETIRE FOR OLD AGE. ONLY UNTIL THE USE OF THE RETAINED FUND IS MADE, THE POSSIBILITY THAT THE MEMBER MAY MAKE USE OF THE FREE-AVAILABILITY SURPLUS SHALL BE DETERMINED IN ACCORDANCE WITH ARTICLE 133 OF THIS ACT. (2)
Survival Pension Payment
Art. 139.-Where the survivor's pension is due to the death of a non-pensioner member, the beneficiaries may benefit from any of the pension arrangements, with the exception of the latter and the last of the 131 of this Law. However, the beneficiaries must be in agreement in order to be eligible for life income or scheduled income with deferred life income. If the option is not exercised, the Administrative Institution will pay the pensions for the scheduled income mode.
If the beneficiaries choose the life-income modality, the pensions they receive will have to maintain them. proportions as provided for in Article 121 of this Law.
If the option exercised is the mode of rent scheduled with deferred lifetime income, the part corresponding to life income shall be applied according to the provisions of the Previous paragraph. As regards the scheduled income in temporary form, it will be distributed in the same percentages as indicated in article 121 of this Law. If the same results in a sum greater than or less than one hundred per cent, a new calculation shall be made, taking as a reference the result of the sum. The initial payment of the scheduled rent, in this case, will be of the same amount as the deferred lifetime income that has been contracted.
If the decision is due to the scheduled income, the beneficiaries will be entitled to receive a pension. calculated according to the provisions of Article 131 of this Law.
In either case, the surplus of free availability will be part of the balance on which the calculation of survival pensions will be made.
Art. 140.-Where the survivor's pension is due to the death of an affiliated pensioner for old age or invalidity declared in the second opinion, the beneficiaries shall pay the pension as the case follows:
(a) If the affiliate has status of scheduled rent,
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beneficiaries must report the death to the Administrative Institution and opt for any of the payment modalities in accordance with the previous article;
b) If the affiliate has been penalized for the lifetime income modality, the beneficiaries shall report the death to the Insurance Company of the Persons who are in charge for the payment of survivor's pensions; and,
c) If the If the affiliate has been receiving scheduled income on a temporary basis, the same shall be the case:
1) If the affiliate has been receiving scheduled income on a temporary basis, the beneficiaries must notify the death to the Administrative Institution, so that the balance of the pension savings account can be placed at their disposal. With this balance, they may choose to distribute the programmed income of the deceased among all or to anticipate the deferred life income, for which there must be prior agreement between them. As long as there is no agreement, the Administrative Institution will distribute the scheduled income of the deceased.
If the deferred life income is not agreed to be anticipated, the Insurance Company of Persons will begin to pay the pension of the deceased. survive when the time limit of the scheduled income is due, and if that date has been left in the pension savings account, it will be a legacy.
2) If the affiliate has been receiving pension for rent For the purposes of the application, the person concerned shall be entitled to the right of Persons concerned for the payment of survivor's pensions.
Where the survivor's pension is caused by the death of a partial invalidity pensioner declared by a second opinion, the fund withheld shall be (a) to finance survivors ' pensions in the form that the deceased has chosen, as the case may be.
Art. 141.-Where the survivor's pension is due to the death of an insured person who is under full or partial invalidity in accordance with the first opinion, the beneficiaries may benefit from any of the pension arrangements in accordance with the provisions of the established in Article 139 of this Law.
Art. 142.-If more beneficiaries of survivor's pension are presented than those registered by the deceased, the procedure laid down in Article 118 (3) of this Law shall apply. In any event, the Administrative Institution must verify the quality of the beneficiaries and if it corresponds, they must include them as such.
If the unregistered beneficiaries are presented with the payment of pensions, these must be recalculated to include them as such, if appropriate, in accordance with this Law. The new pensions will be determined on the basis of the balance in the pension savings account or the unreleased reserves held by the Insurance Company of Persons.
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Target of Pensioners ' Contributions
Art. 143.-If the insured person continues to be listed, the contributions shall be paid to his pension savings account and may, once a year, in the same month in which the pension was paid, increase his pension by means of scheduled income with The Administrative Institution.
The contributions made by a partial invalidity pension affiliate of the second opinion may be used to increase the respective pension annually.
CHAPTER XII STATE GUARANTEES
System Warranty
Art. 144.-The System, as part of the Social Security, will be guaranteed by the State.
The State will be responsible for the financing and payment of minimum old-age pensions, common invalidity and survival in accordance with the provisions of the of this Chapter and the rules that dictate the Superintendence of Pensions. These will be considered as the development of the final paragraph of Article 228 of the Constitution of the Republic.
Minimum System Pension
Art. 145.-Minimum old-age, total invalidity and partial invalidity pensions shall be established annually by the Ministry of Finance in the General Budget Law of the State, taking into account the relative variation of the average quoted salary of the System and resources available from the Central Government.
The minimum survival pension shall be determined as a percentage of the minimum old-age pension in accordance with the reference pensions provided for in Article 121 of this Regulation. Law.
Minimum invalidity pensions will be converted into minimum old-age pensions, to the The date on which the invalid pensioner meets the statutory age of old age pension.
MINIMUM PENSIONS ARE NOT APPLICABLE, EXCEPT FOR FOOD QUOTAS. IN EXCESS OF THE MINIMUM PENSION, UP TO 20% MAY BE TAKEN ON BOARD. (7) **** DECLARED UNCONSTITUTIONAL
General Conditions for Operating Minimum Pension
Art. 146.-The minimum pension shall operate when the balance of the pension savings account is exhausted, in the event that the affiliate has received a scheduled income pension or is in the scheduled income phase on a temporary basis.
the affiliate must not receive income, including the pension, the amount of which is equal to or greater than the minimum wage in force.
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The application to obtain the benefit of the state guarantee shall be filed by the interested party The respective Administrative Institution.
The pensioners of another pension system that are affiliated to the one created by this Law, will not be entitled to this state guarantee.
For the purposes of meeting the requirements to access the Minimum pensions referred to in Articles 147, 148 and 149 of this Law shall be deemed to be the Previously listed period in the Public Pension System.
The Minimum Pensions Regulations will dictate the provisions to make minimum pensions effective in accordance with this Law.
Requirements for access to the minimum old age pension
Art. 147.-The minimum old-age pension is a benefit granted by the State to affiliates who meet the following requirements:
1. Be sixty years of age or older, men and fifty-five or more, women; and,
2. Have completed a minimum of twenty-five years of contributions recorded at the time of the pension, or later, in the case of a pensioner who continues to be listed. For the calculation of the quoted time, the following shall also be considered:
a) The periods by which the worker was incapacitated and received the respective allowance, shall be accumulated and computed for up to a maximum of three years;
b) The time for which the affiliate has received invalidity pensions declared in the first opinion shall be added, where the latter has ceased according to the second opinion; and,
(c) If this is a pensioner who continues to be listed, for each 24 months after the pension requirement in question has been met, one year shall be taken into account for the purposes of the minimum pension time requirement.
Affiliates who have been penalized in accordance with the requirements of the literal of Article 104 of this Law, before the ages mentioned in the literal c) of the same, they will not be entitled to a minimum old age pension.
Requirements for accessing the minimum invalidity pension
Art. 148.-State guarantee of minimum invalidity pension, will be effective when affiliates
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not pensioners register a minimum of quotes, in any of the following cases:
(a) Three years of contributions recorded during the five years preceding the date on which it was declared invalid by a first opinion;
b) Being quoted at the time when the invalidity was declared in the event of a common accident, and always which has been listed for at least six months during the last 12 months and which the accident has occurred after membership; or,
c) Register a minimum of ten years of effective contributions to the date of invalidating, or later if it is an invalidity pension that continues to be listed. This calculation shall be carried out in accordance with subparagraphs (a) and (b) of the previous Article 2 (2).
The State guarantee, in the case of an invalid affiliate according to the first opinion which does not meet the conditions of the literals (a) (b) of Article 116 of this Law, the balance of the pension savings account shall be made effective once the pension is exhausted; or, in the case of compliance with these conditions, the amount of the pension shall be lower than the minimum pension.
If you are a member of the European Parliament, you will be entitled to the following: where the retained fund has been used, after the conditions laid down in the first and second subparagraphs of Article 146 of this Law have been filed.
Requirements for access to the minimum survival pension
Art. 149.-In order for the beneficiaries of the survivor's pension to be entitled to the state guarantee of the minimum pension, the deceased member must have met any of the following requirements, as the case may be:
a. Three years of contributions during the five years prior to the date of death; or,
b. To be listed at the time when he died, in the event of death by common accident, and provided that he has been listed for at least six months during the last twelve months and that the accident occurred after his or her affiliation; or,
c. Record a minimum of ten years of effective contributions to the date of death, as referred to in subparagraphs (a) and (b) of Article 147 (2) of this Act.
TITLE II
REGIME OF VIOLATIONS AND SANTIONS
CHAPTER I GENERAL RULES
Concept
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Art. 150.-THE DEFAULTS BY ACTION OR OMISSION OF THE OBLIGATIONS ESTABLISHED IN THE ORGANIC LAW OF THE SUPERINTENDENCE OF PENSIONS, THIS LAW AND ITS REGULATIONS, WILL BE CONSIDERED INFRACTIONS.
EACH INFRINGEMENT SHALL BE SUBJECT TO THE PENALTY SPECIFIED IN THIS LAW. THE PENALTIES MAY BE: ADMONITIONS, FINES, SUSPENSION OF OPERATIONS OR REVOCATION OF THE AUTHORIZATION TO OPERATE.
THE CRITERIA FOR IMPOSING AND ADAPTING THE SANCTIONS WILL BE BASED ON PROVEN CIRCUMSTANCES, SUCH AS: THE NATURE OF THE OFFENCE COMMITTED, THE HISTORY OF THE OFFENDER AND THE EFFECTS THAT MAY BE CAUSED TO THE MEMBERS; PUBLIC IN GENERAL OR THE PENSION SYSTEM ITSELF. (2)
Independence between violations
Art. 151. Failure to comply with an obligation shall constitute an independent infringement of another obligation, even if they originate in the same event. Accordingly, they will be sanctioned independently, without prejudice to be made in a single act.
Liability for Dependent Acts
Art. 152.-Employers shall be liable for violations of this Law, committed by their dependents in the exercise of their duties.
Expiration of the sanctioning action
Art. 153.-The power for the application of penalties for violations shall expire within three years, counted from the date on which the infringement was committed.
Prescription of the sanction
Art. 154.-The action to enforce the applied sanction, shall be prescribed within five years from the date on which the act, resolution or judgment that has imposed it is signed.
Aggravating circumstances of the sanctions
Art. 155.-The penalties provided for in this Law shall be aggravated in the following cases and forms:
1. Recidivism: The action of incurring again in an infringement of the same nature, which has already been sanctioned by resolution or firm judgment, will be understood as such. In this case, the sanction will be increased by one hundred percent of it or the recall of the authorization to operate an Administrative Institution, according to what is established in this Law; and,
2. Reiteration: The action of infringing the same obligation shall be understood as such, without the infringer having been sanctioned by a final decision. In this case, the applicable penalty will be increased by up to fifty percent of it.
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Competition
Art. 156.-It will be the responsibility of the Superintendence of Pensions to impose the sanctions established in this Law.
CHAPTER II VIOLATIONS AND SANCTIONS
Failure to comply with the obligation to affiliate
Art. 157.-CONSTITUTES AN INFRINGEMENT OF THE OBLIGATION TO AFFILIATE:
1. TO REJECT BY AN INSTITUTION ADMINISTERING THE APPLICATION FOR MEMBERSHIP OF ANY NATURAL PERSON WHO COMPLIES WITH THE REQUIREMENTS LAID DOWN IN THIS LAW FOR THIS PURPOSE. THIS INFRINGEMENT SHALL BE PUNISHABLE BY A FINE OF FIFTY THOUSAND COLONS FOR EACH APPLICATION REJECTED.
2. USE BY THE EMPLOYER ANY MEANS, WHETHER THROUGH COERCION, DECEPTION OR FRAUD, FOR AN EMPLOYEE TO TAKE HOLD AGAINST THEIR WILL TO AN ADMINISTRATIVE INSTITUTION. THE PENALTY WILL BE A FINE OF FIVE THOUSAND COLONES.
3. FAILURE BY THE EMPLOYER TO COMPLY WITH THE OBLIGATION TO AFFILIATE ITS EMPLOYEES IN ACCORDANCE WITH THE THIRD PARAGRAPH OF ARTICLE 7 OF THIS ACT. IN THIS CASE, THE OFFENDER WILL BE PUNISHED WITH A FINE OF FIVE THOUSAND COLONES FOR EACH WORKER I WILL LEAVE TO AFFILIATE. (2)
The breach in the transfers
Art. 158.-Failure to comply with obligations for the transfer of an affiliate to an Administrative Institution:
1. Reject the request for the transfer of an affiliate, which will be sanctioned with a fine of twenty-five thousand colones;
2. Do not carry out the transfer requested by an affiliate within the deadline set in this Law, so a fine of twelve thousand colones will be applied; and,
3. Do not send affiliate information that is transferred to another Administrative Institution in accordance with the Law and its regulations, will be sanctioned with a fine of fifty thousand colones.
Failure to declare
Art. 159.-It is an infringement for the employer to breach the obligation to present the declaration of the contributions to the System, which will be sanctioned according to the following
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provisions:
a) If the declaration is filed after the legal deadline is expired for to do so, up to a maximum of 20 days, shall be punishable by a fine equivalent to five per cent of the contributions; and,
b) If the declaration is subsequently submitted to the deadline set out in the previous literal, it shall be punishable by a fine equivalent to ten percent of quotes;
Art. 160.-The filing of the incomplete or erroneous statement constitutes an infringement, provided that it causes a serious injury to the individual account of the affiliate, which will be sanctioned with a fine of five thousand colones.
The employer informed about the error committed, after fifteen days, will not remedy the situation, will be sanctioned with a fine of ten thousand colones.
Failure to pay
Art. 161.-It constitutes an infringement for the employer to breach the obligation to pay the contributions, in the following cases:
1. The absolute omission of the payment of the contribution, within the prescribed legal period, shall be punishable by a fine of twenty per cent of the unpaid contribution plus a moratorio surcharge of two per cent for each month or fraction, without prejudice to pay the same and the rent they are left to receive in the respective accounts of the affiliated members concerned, as well as the quotation referred to in Article 16 (b) of this law; and
2. To pay a sum less than the contribution within the legal period laid down, you will be punished with a fine of ten per cent of those contributions left to pay more a moratorio surcharge of five per cent of those contributions per each month or fraction, without prejudice to the payment of the same and the rent-to-be left to the respective account of the affected affiliates.
General Ban
Art. 162.-The infringement of Article 53 of this Law shall be punishable by a fine of twenty-five percent of the assets of the infringing company, without prejudice to the civil and criminal actions to which it has taken place.
Art. 163.-Infraction the Administrative Institution, which carries out promotional activities that offer other benefits that suggest improper recruitment of affiliates such as the use of fraudulent means or deception and propaganda advertising Benefits not authorised by the Superintendence of Pensions. Such an infringement will be punishable by a fine of two hundred and fifty thousand colones.
Also, if the participation of a Visionary Services Agent is checked, in the acts described above, it will be punished with a fine of fifty thousand colons and temporary suspension
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or the recall of the authorization pursuant to the respective regulations.
Deficit The Special Warranty Export
Art. 164.-It constitutes an infringement of the deficit of the Special Guarantee of Guarantee, which will be sanctioned with a fine equivalent to ten percent of the deficit for each day that the irregularity persists.
Obligation to protect documentation of the affiliate
Art. 165.-The loss of information in the work history of an affiliate is an infringement, and the offending Administrative Institution shall be punished with a fine equivalent to one quarter of one percent of its assets.
Incompliance with reporting to Superintendence
Art. 166.-It constitutes an infringement of the failure of an Administrative Institution to inform the Superintendence, which will be sanctioned with a fine of two hundred and fifty thousand colones, in the following cases:
1. Refuse to provide the information required by the Pension Superintendence in the time it is pointing out;
2. Omit the information, constances, warnings, and any other data requested by the Pension Superintendence; and
3. To provide the Superintendence of Pensions with false or incomplete reports.
The payment of the fines, does not exempt the offender from the obligation to provide the information required by the Superintendence of Pensions.
Art. 167.-Any natural or legal person who carries out an activity related to the System, is under the obligation to provide the Superintendence of Pensions with the information requested and in the period that it indicates. The violation of this rule will be sanctioned with a fine of fifty thousand colones.
Art. 168.-Any natural or legal person who hides or falsifies information for the purpose of obtaining, hindering or unduly facilitating access to the benefits established by this Law, for himself or for third parties, shall incur a fine of one hundred thousand colones.
Incompliance with accounting records provisions
Art. 169.-The failure of the technical provisions to be established to carry out the accounting records and the preparation of the financial statements is an infringement. The infringement will be punishable by a fine of two hundred thousand colones.
Art. 170.-The delay in the accounting records and in the presentation to the Superintendence of Pensions of the financial statements of a Administrative Institution and the respective one
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Fund to administer for more than five working days, according to established legal deadlines. The backlog will produce a fine of fifty thousand colones.
Failure to publish information
Art. 171.-The failure to publish the Financial Statements of the Administrative Institutions and the Funds they administer, as well as other information to be published in accordance with this Law and its Regulations, constitutes an infringement. The above will be sanctioned with a fine of one hundred thousand colones, without prejudice to the fact that they will have to publish them within the period fixed by the Superintendence of Pensions.
Incompliance with the obligation to find out the percentages of discount permanence
Art. 172.-The breach of the obligation to pay the percentages of discount for permanence, in the amount and time agreed with the Administrative Institution, constitutes an infringement. This violation will be punishable by a fine of one thousand colones for each affiliate entitled to discount, without prejudice that the respective discount must be entered.
Failure to deliver information to the affiliate
Art. 173.-The Administrative Institution that does not submit the information corresponding to the affiliate, in accordance with this Law and its regulations, will incur a fine of five thousand colones.
Infringement by incorporation of directors and indeft administrators
Art. 174.-The Administrative Institution that chooses directors or contracts administrators considered indefable by this Law, will incur a fine of twenty-five thousand colones, without prejudice to the fact that they will have to be replaced.
collection obligations
Art. 175.-The Administrative Institutions shall incur infringements where they do not comply with the obligation to initiate the procedure for the collection of contributions within the time limit laid down for that purpose. Failure to comply with this deadline will be sanctioned with twenty-five percent of the moratorio amount, plus a two percent default surcharge for each month or fraction.
Failure to maintain the asset of the Background
Art. 176.-It constitutes an infringement of the failure to maintain in custody the values in which the Fund is invested, in accordance with the provisions that the Superintendence of Pensions will issue for that effect. The Administrative Institutions that commit this infringement will be sanctioned with a fine equivalent to twenty-five percent of the sum left to be guarded.
Art. 177.-The Administrative Institution which does not communicate within the time limit laid down by this Law, the loss of a value representing investment from the Pension Fund, shall incur a fine equivalent to ten per cent of the value of the title applicable to the Administrative Institution that lost it. If, in addition, the proceedings are not initiated for replacement under the Trade Code within five working days, a fine of one hundred per cent of the value of the title shall be applied.
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In any case, the Administrative Institution which draws a value from the Pension Fund, will be required to restate it.
Incompliance on Fund investment
Art. 178.-The Administrative Institution that invests the Pension Fund exceeding the investment limits determined or fails to comply with the requirements laid down in this Law for the Investment of the Pension Fund, will incur a fine of the 25% of the amount invested in contravention of the legal limits, without prejudice to the settlement of such investments in accordance with the respective provisions and the civil and criminal actions which are applicable.
Except for this fine, the cases in which excess of the limits of the investment, due to market fluctuations or a decrease in the size of the Fund administered due to the reduction of members and others, as determined by the provisions of the Superintendence of Pensions for this purpose.
Incompliance with the obligation to save information reserve
Art. 179.-All officials and employees who are related to the System, who do not reserve as long as the information has no public character or are directly or indirectly valued by the information reserved and obtain some benefit for themselves or for third parties, will be punished with a fine equivalent to one hundred percent of the profit obtained, or if it is not possible to quantify the profit obtained, will be sanctioned with a fine of two hundred and fifty thousand colones, without prejudice of the civil or criminal action to take place.
In cases where the conduct is sanctioned An economic injury to the Pension Fund, the Administrative Institution and the Superintendence of Pensions will be able to sue the infringer to respond for such harm.
Generic Infraction
Art. 180. Failure to comply with any of the obligations imposed in this Law, which has no specific penalty, will be sanctioned with a fine of ten thousand colones.
Art. 181.-The penalties provided for in this Law do not exempt civil, criminal or administrative liability to be imposed.
Art. 182.-The violations and penalties referred to in this Title of the Law shall also apply, as appropriate, to the Public Pension System defined in Article 183 of this Law.
TITLE III
REGIME PENSION SAVINGS SYSTEM TRANSIENT
CHAPTER I OF MEMBERS OF THE PUBLIC PENSION SYSTEM
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Public Pension System
Art. 183.-For the purposes of this Law, it will be called Public Pension System to the invalidity, old age and death regimes administered by the Salvadoran Social Security Institute, and by the National Pension Institute of Public Employees, including the beneficiaries of the Law of Incorporation to the Institute of Pensions of the Public Employees of the Pensions and Civil Pensions in charge of the State, dated twenty-nine hundred and ninety-nine of March, published in the Official Journal Number 86, Volume 307 of the six of April thousand nine hundred and ninety (Decree 474); of the Decree Number 667 of the Temporary System of Old-Age Pensions, dated December 19, thousand nine hundred and ninety, published in Official Journal Number two hundred and eighty-six, Volume 309, of the twentieth of December of a thousand nine hundred and ninety; and their
People who will be affiliated with one of the programs of invalidity, old age, and death administered by the Salvadoran Social Security Institute or the National Pension Institute of Employees Public, they will be subject to the provisions that in this Law are decreed and those contained in the Laws of said Institutes, in which it does not object or is incompatible with this Law, from the date on which the System of Savings for Pensions pursuant to Article 233 of this Law enters into operations.
From that date, the The National Institute for Pensions of Public Employees will manage the administrative and teaching systems in a unified way, in accordance with what is available in this Law, as well as the Decrees 474 and 667. From that moment on, the National Institute for Public Employees ' Pensions will cover the risks of disability and death arising from common risks.
The Public Pension System will be audited by the Superintendence of Pensions.
Transfer of Affiliates to the Pension Savings System
Art. 184.-Those insured in the Salvadoran Social Security Institute, or at the National Institute of Pensions of Public Employees, who have thirty-six years of age, and are less than fifty-five years of age, men, and 50 years of age, women, within six months from the date on which the Pension Savings System begins to operate in accordance with Article 233 of this Law, may choose to remain affiliated with the Pension Savings System. Institutes, as appropriate, or by joining the Pension Savings System.
SECOND INDENT REPEALED (8)
Insured persons who wish to remain in the Public Pension System, must express it in writing to the Salvadoran Social Security Institute or to the National Institute for Public Employees ' Pensions within the deadline. stipulated, as appropriate. If, within the period referred to in the first subparagraph, they do not do so, they shall be considered as members of the Pension Savings System. The transfer procedures shall be established by means of provisions issued by the Superintendence of Pensions for that purpose.
If the worker does not exercise the right of choice of the Administrative Institution where appropriate, the employer will be obliged, within the following month, to join the Institution
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Administrator to which the greatest number of its employees is attached. If not, the employer will be obliged to pay, with its own resources, the total amount accumulated corresponding to the unrealized contributions, plus the profitability established by the Superintendence of Pensions for these cases, without " The workers who, within the time limit, have been paid improperly to the Salvadoran Social Security Institute or to the National Institute for Pensions of Public Employees in that period.
They will choose to maintain their affiliation with the Salvadoran Social Security Institute or in the National Pension Institute of Public Employees, may be transferred to the Pension Savings System until 31 December of one thousand nine hundred and ninety-eight, provided that at the date of the transfer, they comply with the ages to which they refer The first paragraph of this article.
NOTWITHSTANDING THE PROVISIONS OF THE SECOND PARAGRAPH OF THIS ARTICLE, WHEN AN INSURED REACHES THE AGES REFERRED TO IN ARTICLE 200 (A) OR IS INVALID OR PASSED AWAY, WITHOUT HAVING EXERCISED HIS OR HER RIGHT TO OPT FOR NONE OF THE TWO PENSION SYSTEMS, THE RESPECTIVE PROVISION MUST BE DEALT WITH IN THE SYSTEM OF PUBLIC PENSIONS. IN THE CASES REFERRED TO IN ARTICLE 125, THEY MUST ALSO DEAL WITH THE RESPECTIVE PROVISION IN THE PUBLIC PENSION SCHEME, WHERE THEY HAVE NOT MADE CONTRIBUTIONS TO THE PENSION SAVINGS SCHEME. (8)
The insured to the Salvadoran Social Security Institute or the National Pension Institute of Public Employees, will obtain pensions for old age, common invalidity and survival in accordance with the requirements and conditions provided in this Title of the Law and those established in the laws of the Salvadoran Social Security Institute or the National Pension Institute of Public Employees as appropriate, in which it does not contradict this Law.
Superintendence of Pensions will divulge through a campaign of communication, the relevant information so that the listed population can make their membership decision, according to what this article points out.
Art. 184-A.-ALL PERSONS WHO, IN ACCORDANCE WITH THE PROVISIONS OF THE PREVIOUS ARTICLE, CHOOSE TO TRANSFER TO THE PENSION SAVINGS SYSTEM, SHALL RECEIVE A CERTIFICATE OF TRANSFER FOR HAVING BEEN INSURED IN THE PUBLIC PENSION SYSTEM, IN ACCORDANCE WITH THE PROVISIONS OF CHAPTER IX OF THIS TITLE, WHERE THE AGES REFERRED TO IN PARAGRAPH (c) OF ART. 104 ARE INVALIDATED OR PASSED BEFORE THEY ARE FULFILLED, OR WHEN THEY COMPLY WITH THE REQUIREMENT LAID DOWN IN THAT ARTICLE LITERAL (a) OF THE SAME ARTICLE. IN THE EVENT OF COMPLIANCE WITH THE PROVISIONS OF ARTICLE 104 (C) OF THIS LAW, THE FEES FOR CONTRIBUTIONS RECORDED IN THE PUBLIC PENSION SYSTEM SHALL BE RECOGNISED BY WAY OF PAYMENT OF PENSIONS IN ACCORDANCE WITH ARTICLE 201 OF THIS LAW, OF CHARGE OF THE PENSION INSTITUTE WHERE THE LAST CONTRIBUTION WAS MADE PRIOR TO ITS TRANSFER TO THE SYSTEM OF SAVINGS FOR PENSIONS.
THE PROCESS FOR PAYMENT OF OLD-AGE PENSIONS FOR THE FULFILMENT OF THE REQUIREMENT SET OUT IN THE LITERAL (c) OF ART. 104 OF THIS LAW, TO THE MEMBERS REFERRED TO IN THE PRECEDING PARAGRAPH, SHALL CONSIST OF TWO STAGES: 1) THE MANAGING INSTITUTION GRANT THE PENSION ACCORDING TO ART. 201 OF THIS LAW, AGAINST THE BALANCE OF THE INDIVIDUAL ACCOUNT,
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DEDUCED VOLUNTARY CONTRIBUTIONS AND THEIR PROFITABILITY, WITHOUT ANY ANNUAL RECALCULATION PROCESS (2) WHEN THE BALANCE OF THE INDIVIDUAL ACCOUNT IS INSUFFICIENT TO PAY FOR THE RESPECTIVE PENSION, THE RESPECTIVE PENSION INSTITUTE SHALL TRANSFER THE RESOURCES TO THE MANAGING INSTITUTION, AS LAID DOWN IN THE REGULATION ACCORDINGLY, TO CONTINUE MANAGING THE PAYMENT OF THE AFFILIATE ' S PENSION. THE FUNDS TO BE USED FOR THE PAYMENT OF THE SECOND STAGE 'S PENSIONS SHALL BE CREDITED TO THE PENSION FUND' S LIABILITIES IN ACCORDANCE WITH THE RESPECTIVE RULES. FOR ALL PURPOSES, PENSIONS GRANTED IN BOTH STAGES SHALL BE DEEMED EQUIVALENT TO THAT LAID DOWN IN ART. 131 OF THIS LAW, EXCEPT FOR THE ANNUAL RECALCULATION AND IN NO CASE MAY BE LOWER THAN THE MINIMUM PENSION.
WHEN THE PERSONS REFERRED TO IN THE FOREGOING PARAGRAPH ARE KILLED, THE BENEFICIARIES SHALL BE GRANTED SURVIVOR ' S PENSION IN ACCORDANCE WITH THE PERCENTAGES OF REFERENCE ESTABLISHED IN THIS LAW AND THE PROCESS INDICATED IN THE PREVIOUS. FOR THE PAYMENT OF THE BENEFITS OF THE MEMBERS ESTABLISHED IN THIS ARTICLE, THE MANAGING INSTITUTION BECOMES ENTITLED TO THE PAYMENT OF THE BENEFITS REFERRED TO IN STAGE TWO OF THE PROCESS.
THE VOLUNTARY CONTRIBUTIONS AND THE PROFITABILITY GENERATED BY THEM MAY BE WITHDRAWN BY THE AFFILIATE AFTER THEY MEET THE RESPECTIVE REQUIREMENTS, AND SHALL NOT BE COUNTED FOR THE PURPOSE OF CALCULATING THE PENSION. THE MEMBERS REFERRED TO IN THIS ARTICLE SHALL NOT BE SUBJECT TO THE PROVISIONS OF ARTICLE 133 OF THIS LAW.
THE PROVISIONS CONTAINED IN THIS ARTICLE WILL ALSO BE APPLICABLE TO AFFILIATES WHO HAVE RECEIVED THE PROVISIONS OF THE LEGISLATIVE DECREES NUMBER 249, DATED JANUARY 11, 2001, PUBLISHED IN THE OFFICIAL JOURNAL NO. 23, TOOK Nº 350, OF THE 31 OF THE SAME MONTH AND YEAR AND NUMBER 369, DATED MARCH 29, 2001, PUBLISHED IN THE OFFICIAL JOURNAL NO. 65, TOOK NO. 350 OF THE 30 OF THAT SAME MONTH AND YEAR. (8)
Art. 185.-THE MEMBERS OF THE PUBLIC PENSION SYSTEM WHO, AT THE BEGINNING OF THE PERIOD REFERRED TO IN ARTICLE 184 (1) OF THIS LAW, HAVE NOT YET COMPLETED THIRTY-SIX YEARS OF AGE, MUST JOIN THE PENSION SAVINGS SYSTEM, BY CHOOSING A MANAGING INSTITUTION TO MAKE YOUR CONTRIBUTIONS.
IF YOU DO NOT DO SO, THE PROVISION OF ARTICLE 184 (3) OF THIS LAW SHALL APPLY.
PERSONS WHO ARE TRANSFERRED TO THE PENSION SAVING SCHEME UNDER THIS ARTICLE WILL RECEIVE A TRANSFER CERTIFICATE FOR HAVING BEEN INSURED IN THE PUBLIC PENSION SYSTEM, IN ACCORDANCE WITH WHAT IS SET OUT IN CHAPTER IX OF THIS TITLE. (8)
Art. 186.-Those affiliated with the Salvadoran Social Security Institute or the National Institute for Pensions of Public Employees, who, on the date when the Pension Savings System enters into operations, are fifty-five years old. or more, if they are men, or fifty years or more, if they are women, they will remain insured in the Public Pension System in the same Institute, according to their activity in the private or public sector respectively, and they will obtain the benefits in the
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conditions outlined in the sixth paragraph of Article 184 of this Law.
Art. 187.-Persons who, before the date of entry into operations of the Pension Savings System, have met the requirements to obtain an old-age, invalidity or survivor's pension within the Public Pension System, will obtain their rights according to the laws of the Salvadoran Social Security Institute or the National Public Employees ' Pension Institute, as appropriate.
Art. 188.-The Public Pension System will not be able to make new affiliations, from the moment the System of Savings for Pensions begins to operate in accordance with Article 231 of this Law.
Administrative financial separation of the Salvadoran Social Security Institute
Art. 189. As of the validity of this Law, the Salvadoran Social Security Institute will have a period of one year to carry out the administrative financial separation of the Invalidity, Old Age and Death program and the program of illness, Maternity and Professional Risks.
CHAPTER II OF THE CONTRIBUTIONS OF MEMBERS OF THE PUBLIC PENSION SYSTEM AND
TRANSIENCE OF THE PENSION SAVINGS SYSTEM
Listing Rate
Art. 190.-The contribution rate for those who are affiliated with the Salvadoran Social Security Institute or the National Institute for Public Employees ' Pensions will be fourteen percent, seven percent of the base income as a contribution from the
declaration and payment of the contributions to the Public Pension System will be made in accordance with the provisions of Article 19 of this Law, as applicable.
Transitional system of contributions for members of the Salvadoran Social Security Institute.
Art. 191.-Workers in the private sector who, during the period referred to in the first article of Article 184 of this Law, will choose to remain affiliated with the Salvadoran Social Security Institute, as well as those referred to in Article 186 of the This Act shall be subject to a transitional regime until the rate of contribution set out in the previous Article is reached, as follows:
Total Worker Employer Year
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1997 1998 1999 2000 2001 2002
4.50% 5.00% 5.50% 6.00% 6.50% 7.00%
3.50% 4.50% 5.50% 6.00% 6.50% 7.00%
8.00% 9.50%
11.00% 12.00% 13.00% 14.00%
Transitional scheme of contributions for members of the National Pension Institute of Public Employees.
Art. 192.-Workers in the public sector who choose to remain affiliated with the National Pension Institute of Public Employees, in accordance with the provisions of Article 184 (1), and those referred to in Article 186 of the This Act shall be subject to a transitional system of contributions from the date of the start of the Pension Savings System, in accordance with Article 233 of this Law.
If insured under the scheme administrative, the initial contribution rate will be nine percent of its base income and will be increased by a Percentage point per year up to 14%. If insured under the teaching scheme, the initial contribution rate will be twelve per cent and will be increased by one percentage point per year to fourteen per cent.
Such fees will be distributed between the employer and the worker in equal parts.
Missing State Charge
Art. 193.-The State will guarantee the payment of the pensions of the Public Pension System administered by the Salvadoran Social Security Institute and the National Institute of Public Employees, and will assume the costs of the financial deficit. actuarial of such a System when the technical reserves have been exhausted in each of these Institutes.
Transitional arrangements for pension savings system contributions
Art. 194.-From the date on which the System of Savings for Pensions pursuant to Article 233 of this Law enters into operations, persons entering the labour market for the first time and those who transfer to the Savings System for Pensions shall be listed in accordance with Article 16 of this Law. To achieve the rate referred to in literal (a) of that article, the following transitional regimes are established:
a) Private Sector Employees and Administrative Public:
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Year Total Worker Employer
1997 1998 1999 2000 2001 2002
4.50% 5.00% 5.50% 6.00% 6.50% 6.75%
0.00% 1.00% 2.00% 2.50% 3.00% 3.25%
4.5% 6.0% 7.5% 8.5% 9.5%
10.0%
b) Public Sector Teaching Employees:
Total Worker Employer Year
1997 1998
6.00% 6.75%
2.50% 3.25%
8.50% 10.00%
CHAPTER III OF REQUIREMENTS AND BENEFITS BY DISABILITY IN THE PENSION SYSTEM
PUBLIC
THE REGULATORY BASIC SALARY
ART. 195.-The basic salary for determining the benefits of the Public Pension System will be established in the same way as stated in article 122 of this Law.
Requirements
Art. 196.-The insured to the Public Pension System shall be entitled to an invalidity pension, in whole or in part, when they meet the following requirements:
a) Haber has been declared invalid by the Validity Qualification Commission referred to in the Article 111 of this Law, in accordance with the definitions in Article 105 thereof;
b) BEING LISTED OR LISTED FOR A PERIOD OF NOT LESS THAN THIRTY-SIX MONTHS, OF WHICH EIGHTEEN MONTHS TO BE LISTED MUST BE RECORDED WITHIN THE THIRTY-SIX MONTH CALENDAR TO THE DATE ON WHICH THE INVALIDITY IS DECLARED. (2) (7)
c) Being under 60 years of age if they are male or 55 years old if they are women, from which the right to an old age pension will proceed.
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Benefits
Art. 197.-The monthly total invalidity pension is to be determined as a percentage of the basic statutory salary according to the service time quoted, with 30% of the basic salary for the first three years quoted and increased
pension for partial invalidity shall be calculated by adding up to 30% of the basic statutory salary for the first three years, 1% of the basic salary for each year of additional contributions.
Benefits Transitory
Art. 198.-The members of the ISSS or INPEP who remain insured in accordance with the provisions of Article 186 of this Law, as well as those referred to in paragraph 2. of Article 200 of this Regulation, the monthly invalidity and old age pensions shall be determined as a percentage of the basic salary for the service time quoted, with 30% of the basic salary for the first Three years quoted and increased by 1.75% per year of additional contributions.
The basic regulatory salary for these purposes shall be calculated in accordance with Article 122 of this Law or according to the salary calculations. basic regulator and percentage scales of pension of the ISSS or INPEP laws, as appropriate, the best for the insured.
Art. 199.-Any invalidity pension shall be granted on a provisional basis for a period of three years, which shall be determined by the Qualifying Commission of Invalidity if it is to be granted on a permanent basis or the right to a pension.
When the affiliate meets the legal age, the invalidity pension will be converted into an old age pension, and must be recalculated in the cases where partial invalidity is treated.
CHAPTER IV OF THE BENEFITS FOR OLD AGE IN THE PUBLIC PENSIONS
Requirements
Art. 200.-The insured to the Public Pension System shall be entitled to an old-age pension when they meet any of the following requirements:
a) Haber is 60 years of age men and 55 women; and have a time of contributions registered twenty-five years or more; and
b) REPEALED (5) ** DECLARED UNCONSTITUTIONAL
SECOND REPEALED (5) ** DECLARED UNCONSTITUTIONAL
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AUTHENTIC INTERPRETATION
DECREE No. 523
THE LEGISLATIVE ASSEMBLY FROM THE REPUBLIC OF EL SALVADOR,
CONSIDERING:
I. That by Legislative Decree No. 927, dated December 20, 1996, published in Official Journal No. 243, Volume No. 333 of the 23rd of the same month and year, the Law of the System of Savings for Pensions was issued.
II. That by Legislative Decree No. 347, dated June 15, 2004, published in Official Journal No. 128, Volume No. 364 of July 9 of the same year, the literal b) of Article 104 and literal b) and the second paragraph of Article 200 of the Law were repealed. mentioned in the previous recital.
III. That the repealed literals and points allow access to an old age pension, to persons who register a period of 30 years of contributions or who at the date of entry into operations of the Pension Savings System will register thirty years of quotes or more, in both cases, regardless of age.
IV. That the Decree mentioned in the second recital of this Decree will enter into force on 1 January 2005. However, the same is being interpreted by the different institutions charged with making it effective with different criteria, which is creating uncertainty in the members of the Pension System that meet the requirements of 30 years of services, and who intend to retire.
V. That the spirit of this Assembly was that people who meet the requirements before 1 January 2005, in accordance with the law in force, will not be required to exercise such a right before December 31, 2004.
VI. That, in view of the above, it is necessary to interpret authentically what is established in Article 1 of Legislative Decree No. 347 before, in order to establish that persons who meet the requirements to be penalized by Regardless of age at December 31, 2004, they can exercise such a right.
BY TANT:
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in use of its constitutional powers and on the initiative of the deputies: Alejandro Dagoberto Marroquín, Juan Miguel Bolaños and José Mauricio Quinteros.
DECCRETA:
THE FOLLOWING AUTHENTIC INTERPRETATION OF ARTICLE 1 OF THE LEGISLATIVE DECREE No. 347, DATED JUNE 15, 2004, PUBLISHED IN THE OFFICIAL JOURNAL No. 128, TOO No. 364 OF 9 JULY OF THE SAME YEAR, ASI.
Art. 1. It shall be understood that the members who, as at 31 December 2004, meet the requirements for pensionable age regardless of age, in accordance with the provisions of Article 104 (b) and (b) and (b) and (b) Article 200 of the Pension Savings System Act may exercise such right, even after December 31, 2004.
This authentic interpretation is incorporated into the text of the Pension Savings System Act.
Art. 2. This Decree shall enter into force eight days after its publication in the Official Journal.
GIVEN IN THE LEGISLATIVE PALACE. San Salvador, at twenty-five days of November of the year two thousand four.
D. O. No. 240 Took No. 365 Date: December 23, 2004
For the purposes of accounting for the public and municipal workers ' contribution records, the time of service shall also be considered before 1975, if In the case of those of the teaching system, I shall be dealing with contributions from the Administrative Regime, or before 1978.
Art. 201.-The monthly old-age pension shall be determined as a percentage of the basic statutory salary according to the quoted service time and shall be calculated in the same way as the total invalidity pension is established in the first subparagraph of the Article 197 of this Act.
Transitories
Art. 202.-The insured persons who remain in the Public Pension System shall be subject to a transitional regime for the fulfilment of the minimum service time requirements laid down for the benefit of the old-age pension, which shall be determined according to the age of the Pension Savings System, as follows:
a) For men:
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Age Fulfilled Years of Quotation to Penalize
60 and plus 59 58 57 56 55 54 53 52 51 50 and Less
15 16 17 18 19 20 21 22 23 24 25
b) For women:
Age Accomplished Years of Listing to Penalize
55 and plus 54 53 52 51 50 49 48 47 46 45 and less
15 16 17 18 19 20 21 22 23 24 25
These Transitional provisions shall also apply to persons who are transferred to the Savings System for Pensions.
CHAPTER V OF SURVIVAL BENEFITS IN THE PUBLIC PENSION SYSTEM
Requirements
Art. 203.-An insured person shall be entitled to a survivor's pension in the following cases:
a) If he dies being a pensioner for invalidity or old age;
b) If an insured person is listed or who has not registered a price
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for up to twelve months before your death. In either case you must register a minimum of five years ' contributions; and
c) If you are a insured person who has not registered a contribution for a period of more than 12 months before his death, provided he or she is ten years old quotes to the System.
Recipients
Art. 204. THE FOLLOWING PERSONS SHALL BE ENTITLED TO A SURVIVOR ' S PENSION: (2)
(a) THE CHILDREN OF THE AFFILIATE UP TO THE AGE OF 18 YEARS; OR UP TO THE AGE OF 24 YEARS IF THEY CARRY OUT BASIC, MEDIUM, TECHNICAL OR HIGHER EDUCATION STUDIES; OR OF ANY AGE IF THEY ARE DISABLED; (2) (7)
b) THE WIDOW OR WIDOWER; THE SURVIVOR OR THE NON-MARITAL UNION SURVIVOR DECLARED JUDICIALLY IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 123 OF THE FAMILY CODE. SUCH A DECLARATION SHALL NOT BE REQUIRED IF THERE ARE CHILDREN IN COMMON WITH THE SURVIVOR, BORN OR CONCEIVED, EXCEPT WHERE TWO OR MORE PERSONS ARE REQUIRED TO RECEIVE A PENSION FOR CLAIMING TO BE THE DECEASED OR THE DECEASED MEMBER. (2) (7)
(c) THE PARENTS OF THE DECEASED, IF THERE ARE NO OTHER BENEFICIARIES, IF THEY ARE OVER 60 YEARS OF AGE THE FATHER AND GREATER THAN 55, THE MOTHER, AT THE TIME OF THE DEATH OF THE AFFILIATE. NOTWITHSTANDING THE FOREGOING, IF THE PARENTS HAVE THE STATUS OF INVALID AT THAT TIME, THESE AGES WILL NOT BE REQUIRED. (2)
Benefits
Art. 205.-The pensions of widowers, widows or cohabitants shall be paid monthly, in an amount equal to 50% of the pension that the deceased received or who would have been entitled to receive by old age to the date of his death.
marriage, non-marital union or death of the beneficiary.
Art. 206.-The orphan's pensions of each child shall be 25% of the pension received by the person responsible for the pension, or of which he or she has been entitled to receive an old-age pension. If the orphan is a parent, the pension shall be raised to 40%.
Art. 207.-The sum of the pensions of widowhood and orphans caused by the same person, shall not exceed 100% of the pension which the deceased received or who would have been entitled to receive for old age. If it is larger, it will be reduced proportionally to reach that limit.
Art. 208.-If the right to an ascending pension is carried out, the father and the mother shall each receive the equivalent of 30% of the pension which he or she has received or would have been entitled to on the date of his death. If only one of them exists, it shall correspond to 40%.
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CHAPTER VI GENERAL PROVISIONS OF THE PUBLIC PENSION SYSTEM
Pension Minimum Public Pension System
Art. 209.-The amount of monthly old-age and invalidity pensions may not be lower than the minimum pension established annually by the Ministry of Finance in the Budget Law, when the requirements set out in the next to this article. Likewise, the sum of the survivor's pension that causes the same cause may not be less than that minimum pension.
To operate the state guarantee, the affiliate or beneficiary must not receive income, including the pension, whose amount is equal to or greater than the minimum wage in force. In addition, those who are pensioned for old age must have recorded a minimum of twenty-five years of contributions.
The minimum pensions of the Public Pension System shall be subject to the provisions of Article 145 (1) of the Treaty.
Revaluation
Art. 210.-All pensions granted by the Public Pension System shall be revalued annually in the percentage that the Ministry of Finance determines, starting from the fiscal year of a thousand nine hundred and ninety-eight.
shall be established taking into account the conditions set out in the first paragraph of Article 145 of this Law.
Pensions granted up to a thousand nine hundred and ninety-six in the invalidity, old age and death schemes of the Public Pensions referred to in Art. 183 of this Law, the first of its value shall be revalued at 6% of its value One thousand nine hundred and ninety-seven.
Assignments
Art. 211.-When an insured person records at least 12 months of contributions in the ISSS or INPEP and does not meet the requirements for access to an invalidity pension or to generate a right to a survivor's pension, he shall be entitled to receive an allowance. This will consist of a single payment equivalent to ten per cent of the statutory basic salary for each listed month.
People who have met the age to obtain the old age pension do not meet the requirement for required contributions, and declare their inability to continue to be listed, they shall be entitled to receive the allowance referred to in the preceding paragraph.
NOTWITHSTANDING THE PROVISIONS OF THE FIRST SUBPARAGRAPH, THE AFFILIATE OR BENEFICIARIES MAY CHOOSE THE PAYMENT IN SIX ANNUITIES. IF IT IS CHOSEN IN THIS WAY, EACH PAYMENT SHALL BE AT LEAST EQUIVALENT TO THE PROPORTION OF TWELVE MONTHS QUOTED, OTHERWISE IT SHALL BE MADE IN A SINGLE PAYMENT. WITH EACH ANNUITY, THE AFFILIATE MAY BE LISTED AS A PENSION TO THE ISSS HEALTH PROGRAM AS SET FORTH IN ARTICLE 5 (5).
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126 OF THE PRESENT LAW. (8)
Tax Treatment
Art. 212.-The contributions to the Public Pension System and the funds it administers will have the same tax treatment as in Article 22 of this Law.
CHAPTER VII PENSION SYSTEM BENEFITS PUBLIC
Assignments by Child
Art. 213.-The child allowances granted by the ISSS to the pensioners for old age and invalidity, before the first of January of a thousand nine hundred and ninety-seven, will continue to be awarded until the age of the limit age.
date, the child allowances shall be void. However, they will receive the additional annual benefit referred to in Article 215 of this Act.
Pensioners ' contributions to the health program
Art. 214.-The contributions to the health program of the Salvadoran Social Security Institute, for the coverage of the pensioners and their family group, both the Pension Savings System and the Public Pension System, will be uniform and charge of the pensioner, or of his widow or widower, survivor, survivor, produced the death of this. From the first of January of a thousand nine hundred and ninety-seven, the rate of contribution will be 7.80% of your monthly pension.
For these purposes, the pensions granted by the ISSS and INPEP before that date, except for orphans and In the ascending line, they will be increased once, as follows:
a) In 5.57% those of the administrative regime of INPEP;
b) In 5.80% those of the INPEP teaching regime; and
c) In 1.80% of the ISSS.
WHEN A PENSIONER FOR OLD AGE OR INVALIDITY, IS WORKING OR REJOINS A PAID JOB, THE WAGES THAT HE OR SHE WILL RECEIVE FROM THAT ACTIVITY, SHALL NOT BE SUBJECT TO THE HEALTH, MATERNITY AND RISK CONDITIONS ISSS PROFESSIONALS. (6)
Annual Additional Benefit
Art. 215.-The pensioners of the Public Pension System will have an additional annual benefit in the month of December of each year with a limit equal to the one that the Central Government establishes as Supplementary Annual Salary in respect of the public sector employees. This benefit
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additional year will be granted according to the following table:
a) Pensioners with minimum pension, they will receive one hundred per cent of their pension;
b) pensioners with pensions exceeding the minimum pension up to the equivalent of two minimum pensions, will receive the equivalent of the minimum pension plus seventy-five per cent. of the difference between your pension and the minimum pension; and
c) Pensioners with Pensions greater than the equivalent of two minimum pensions, they will receive the equivalent of one point seventy-five times the minimum pension, plus fifty per cent of the difference in their pension, and one point seventy-five times the minimum pension.
Funeral expenses
Art. 216.-The pensioners of the INPEP to the validity of this Law and those who are penalized for the next 24 months, will cause before their death the right to funeral expenses, according to the provisions of article 73-C of the Law of INPEP. Those who are pensioned after that period, and the assets that die from the date on which the Pension Savings System enters into operations, will receive aid for the sickness, maternity and occupational risks which administers the ISSS.
From the INPEP credit portfolio
Art. 217.-The portfolio of personal and mortgage credits of INPEP that have been granted to its policyholders before the entry into force of this Law, will be sold or given in administration to institutions of the financial system legally established in the
The loans referred to in the INPEP Act will cease to be granted from the date the present is in effect.
Reduced old age pension
Art. 218.-From the date on which the System starts operations pursuant to Article 233 of this Law, the ISSS and INPEP shall cease to grant reduced old-age pensions and pensions referred to in Article 57 of the INPEP Act, respectively.
Pensioners Contributions
Art. 219.-THE INSURED OF THE PUBLIC PENSION SYSTEM, WHO OBTAIN THEIR OLD AGE PENSION, FROM THE DATE OF ENTRY OF OPERATIONS, THE PENSION SAVINGS SYSTEM, MAY BE REINSTATED TO THE ACTIVE SERVICE WITHOUT LOSING THE ENJOYMENT OF THAT PENSION, BUT THEY SHALL NOT BE ENTITLED TO THE ADJUSTMENT OF THAT PENSION FROM THEIR REINSTATEMENT; IN THE CASE OF OFFICIALS OF POPULAR CHOICE AND THOSE ELECTED BY THE LEGISLATIVE ASSEMBLY, THEY MAY OBTAIN THEIR OLD AGE PENSION, WITHOUT HAVING TO GIVE UP THE PENSION FOR THE PENSION. WHICH WERE ELECTED. (9)
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In such a case, they may make contributions to the pension savings system in the percentages to referred to in Article 16 and (b) of Article 49 of this Law, and may provide each year the balance of the pension savings account. In the event of his death, the balance will be part of the succession.
The insured persons who have been penalized before the date of entry into operations of the Pension Savings System, in the INPEP, and who have suspended the payment of his pension, for having reentered before the public service, will recover his right to the pension payment by ceasing in these, for which they will continue to be governed in everything according to the articles 41, 44, 56, 58 and 83 of the Law of the INPEP.
CHAPTER VIII SPECIAL PROVISIONS
Of The Technical Reserves in the Public Pension System
Art. 220.-The technical reserves of the Public Pension System, as long as they exist, shall be invested under the same conditions and limits as indicated in Chapter VIII of Title I of this Law, except in securities issued by the General Directorate of Treasury and state enterprises other than credit institutions.
The technical reserves shall be used for the payment of pensions and administrative expenses of the ISSS and INPEP, where the revenue they receive from contributions and contributions is insufficient. for this. In addition, the redemption of the transfer certificate referred to in the following Chapter IX shall be carried out with the latter.
These technical reserves shall be subject to the State responsible for the financing of pensions and administrative expenditure. of the Public Pension System, as well as the redemption of the Transfer Certificates referred to in this Law.
of the Health Regime
Art. 221.-Workers in the private, public and municipal sectors shall pay contributions to the general scheme of sickness, maternity and occupational risks which the ISSS administers in a uniform manner and shall enjoy the health and financial benefits referred to in The Law of the ISSS and its Regulations. To this end, they shall be listed as from the date on which 10.5% of the remuneration is affected by the Pension Savings System. This fee will be distributed in 7.5% of the remuneration affected by the employer's charge and 3.0% of the worker.
However, teachers in the public sector may be covered by a special disease programme. maternity and professional risks, and the rate set in the previous paragraph should be quoted.
AUTHENTIC INTERPRETATION
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DECREE No. 62.-
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,
CONSIDERING:
I.-That by Legislative Decree No. 927 dated December 20, 1996, published in Official Journal No. 243, Volume No. 333 dated 23 of the same month and year, the Savings System Act was issued for Pensions;
II.-That Art. 221 of that law, provides that workers in the sector private, public and municipal, will be listed in the general sickness, maternity and professional risks that the Salvadoran Social Security Institute administers and will enjoy the health benefits it provides;
III. Currently, the Salvadoran Social Security Institute is demanding that different municipalities in the country be charged with fines on the pretext that they have not made the payments of their contributors;
IV. of Social Security is charging them the respective contributions, as of the date on which the The pension savings system went into effect and not from the date when the different municipalities have signed up to the Salvadoran Social Security Institute; what has caused adverse interpretations of the content of the referred to;
V.-That in the light of the above, it is necessary to authentically interpret Art. 221 of the Law of the Pension Savings System, in order to determine from what date the Municipalities must begin to list in the Salvadoran Social Security Institute, understanding that when they are refers to contributions that are made by municipalities and workers;
BY TANTO,
in use of its constitutional powers and at the initiative of Deputies Julio Antonio Gamero Quintanilla, Carmen Elena Calderón de Escalon, Nelson Funes, José Mauricio Quinteros, Juan Miguel Bolanos, Osmin López Escalante, Schafik Jorge Handal, Francisco Jovel, Humberto Centeno h., Vilma Celina García de Monterrosa, Alejandro Dagoberto Marroquín, Ciro Cruz Zepeda Peña, Julio Eduardo Moreno Niños, Rene Aguiluz Carranza, Jorge Alberto Villacorta Munoz and Gerardo Antonio Suvillaga,
DECRETA:
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The following authentic interpretation of Art. 221 of the Savings System Act Pension, issued by Legislative Decree No. 927 dated December 20, 1996, published in Official Journal No. 243, Volume No. 333, dated December 23, the same year, as follows:
Art. 1.-It shall be understood that the contribution referred to in Art. 221 shall be made from the date on which the municipalities join the Salvadoran Social Security Institute.
The municipalities as at the date of entry into This decree shall not be entered, shall be construed as being affiliated with the Ministry of Law.
This authentic interpretation is incorporated into the text of the Pension Savings System Act.
Art. 2. This Decree shall 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 thirteen days of July of the year two thousand.
D. O. N ° 152, Volume N ° 348, Date: 17 August 2000.
From contributions to the Social Fund for Housing
Art. 222.-The balance of the individual account of each worker who listed the Social Fund for Housing before the date of entry into operations of the Pension Savings System pursuant to Article 233 of this Law, will continue to be administered by the Social Fund for Housing and will be transferred to the individual savings account of the members of the Pension Savings System, in view of the occurrence of the event that generates the right to a pension. Otherwise, the provisions of the Law on the Creation of the Social Fund for Housing will apply to access that balance.
From the date when the Pension Savings System enters into operations, contributions will cease to be made. to the Social Fund for Housing.
INVESTMENT TO FINANCE HOUSING (8)
Art. 223.-SECURITIES ISSUED BY THE SOCIAL FUND FOR HOUSING WITH THE RESOURCES OF THE PENSION FUND MAY BE ACQUIRED, IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 91 (I) OF THIS ACT. FOR THIS PURPOSE, THE SOCIAL FUND FOR HOUSING MUST DEFINE THE CHARACTERISTICS OF THE SECURITIES TO BE ISSUED. (8)
THE MANAGING INSTITUTIONS, WITH THE RESOURCES OF THE PENSION FUNDS THAT THEY ADMINISTER, MUST ACQUIRE SECURITIES ISSUED BY THE SOCIAL FUND FOR HOUSING WITH THE OBJECT THAT THE RESOURCES CAPTURED WITH THE PLACEMENT OF THE SAME BE USED IN THE GRANTING OF LOANS TO WORKERS IN THE FORMAL SECTOR, WITH SPECIAL EMPHASIS ON FEMALE HEADS OF HOUSEHOLD, FOR THE ACQUISITION OF NEW HOUSING
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OF SOCIAL INTEREST, WITH A VALUE OF UP TO TWENTY-EIGHT MINIMUM WAGES IN THE TRADE SECTOR SERVICES. FOR SUCH PURPOSES, THE MANAGING INSTITUTIONS SHALL INVEST THE EQUIVALENT OF THREE POINTS EIGHTY-FIVE PER CENT OF THE CUMULATIVE COLLECTION OF PRE-VIEWING CONTRIBUTIONS FOR THE THREE MONTHS PRECEDING THE MONTH IN WHICH THE PLACEMENT IS CARRIED OUT. OF THE SECURITIES ISSUED. (10)
THE SECURITIES REFERRED TO IN THE PRECEDING PARAGRAPH SHALL BE ISSUED BY THE SOCIAL FUND FOR HOUSING WITHIN A PERIOD OF UP TO TWENTY-FIVE YEARS AT A FIXED INTEREST RATE, NOT LESS THAN THREE PER CENT A YEAR, WHICH SHALL BE THE SUBJECT OF PERIODIC REVIEWS BY THE AFOREMENTIONED INSTITUTION, MAINTAINING AT ALL TIMES A SPREAD OF AT LEAST THREE PERCENTAGE POINTS IN RESPECT OF THE ACTIVE INTEREST RATE IN FORCE AT THE DATE OF THE REVIEW, ESTABLISHED FOR CREDIT FOR THE ACQUISITION OF HOUSING OF SOCIAL INTEREST OF A VALUE OF ONE HUNDRED AND TWENTY-EIGHT MINIMUM WAGES OF THE TRADE AND SERVICES SECTOR. THE REST OF THE CHARACTERISTICS OF THE SECURITIES REFERRED TO IN THE PRECEDING PARAGRAPH SHALL BE DEFINED BY THE SOCIAL FUND FOR HOUSING. (10)
THE SECURITIES ISSUED BY THE SOCIAL FUND FOR HOUSING IN ACCORDANCE WITH THE PROVISIONS OF THE SECOND AND THIRD SUBPARAGRAPHS OF THIS ARTICLE SHALL RECEIVE THE SAME TREATMENT AS THE SECURITIES ISSUED BY THE GENERAL MANAGEMENT OF TREASURY AND THE RESERVE CENTRAL BANK HAS IN THE SECURITIES MARKET LAW AND IN THIS LAW, BEING SUBJECT ONLY TO AN INVESTMENT LIMIT EQUIVALENT TO THAT SET OUT IN THE SECOND PARAGRAPH OF THIS ARTICLE. THE INVESTMENT OBLIGATION REFERRED TO IN THE SECOND PARAGRAPH OF THIS ARTICLE SHALL PERSIST, IN SO FAR AS THE SOCIAL FUND FOR HOUSING DETERMINES THE NEED TO CARRY OUT THE SECURITIES ISSUES REFERRED TO IN THIS PROVISION. (10)
MANDATORY INVESTMENT IN PRE-VISIONARY INVESTMENT CERTIFICATES (8)
Art. 223.A-PENSION FUNDS MUST BE REQUIRED TO PURCHASE THE PRE-VIEWING INVESTMENT CERTIFICATES WHICH CORRESPOND TO THE ANNUAL PROGRAMME OF EMISSIONS OF THE ESCROW FOR PRE-VIEWING OBLIGATIONS, WITHOUT THE TOTAL BALANCE ACQUIRED EXCEEDING THE LIMIT OF INVESTMENT REFERRED TO IN ARTICLE 91 (M) OF THIS LAW. THEY MUST ALSO ACQUIRE THE PRE-VIEWING INVESTMENT CERTIFICATES FOR WHICH THE TRANSFER CERTIFICATES AND SUPPLEMENTARY TRANSFER CERTIFICATES ARE TO BE REPLACED, FOR WHICH THEY WILL NOT OPERATE SUCH A LIMIT. (8) (10) *** DECLARED UNCONSTITUTIONAL
Amortization Fund
Art. 224.-From the year 1998, the Ministry of Finance will constitute a Amortization Fund for the payment of the obligations set out in the third paragraph of Article 220 of this Law, and the State guarantee of the Pension Savings System. It will be formed annually, with a percentage of the General Budget of the State that will be in the middle of one percent from 1998 to the year 2000; to one percent, from 2001 to 2010, and from 2011, to one and a half percent of that. Budget. State contributions to the Depreciation Fund should be incorporated into the budget of each financial year for approval.
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The Ministry of Finance will annually transfer those resources as investment in Fund shares. Pensions, to the administrative institutions that are operating and obtaining at least the average profitability with the Pension Funds, in proportion to their market share, and will be able to dispose of them exclusively to pay the obligations arising from this Act, provided that it is up to date with its obligation to
prejudice to the foregoing, as long as the respective reserves of the ISSS or INPEP have not been exhausted, as the case may be, the Ministry of Finance will not be able to dispose of the resources of the amortisation fund to deal with the obligations under this Law, except in the case of the payment of minimum pensions for the Pension Savings System.
For this service, the Administrative Institutions shall not bear any commission.
procedure for the transfer of funds will be entered in the respective regulation.
Superintendence of Pensions will annually estimate the resources necessary for the State to comply with the obligations of the Public Pension System, and with the Pension Savings System, and will forward them to the Ministry of Finance in the Respective Budget.
Minimum Pensions
Art. 225.-From the date on which the Pension Savings System pursuant to Article 233 of this Law enters into operations, the minimum age pension and total invalidity of the Pension Savings System shall be at the minimum pension in that pension. This is in force for the Public Pension System, and the minimum partial invalidity pension, will be equal to seventy per cent of the same
From 1 January 1 000 nine hundred and ninety-seven the minimum old age pension and Common invalidity of the Public Pension System will amount to seven hundred colones monthly.
Custody Transition
Art. 226.-As long as there are no holding companies and deposit of securities established in accordance with the Law of the Market of Securities, this function may be exercised by a bank or financial institution legally established in the country and authorized by the Settings Superintendence for that effect.
Classification Transient Function
Art. 227.-As long as there are no risk classification societies established in accordance with the Securities Market Act or in the event that there is only one, the Risk Commission referred to in Article 89 of this Law, it shall qualify the financial instruments subject to being acquired with the Pension Funds and the insurance companies of persons providing services to the Pension Savings System and their obligations, in accordance with the minimum qualification limits and the the procedure that the Risk Commission establishes, on the proposal of the Superintendence of Pensions.
When they operate at least two established risk classification societies of compliance
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to the Securities Market Act, will be subject to being acquired with the Pension Funds those instruments that meet the minimum rating established by the Risk Commission for that purpose.
Commission Transition
Art. 228.-The contribution referred to in Article 16 (b) of this Law shall be a maximum of 3.5% of the basic income for the years 1997 and 1998, and a maximum of 3.25% for the years 1999 and 2000.
CHAPTER IX OF THE HANDOVER CERTIFICATE
The Transfer Certificate
Art. 229.-Workers who, according to Articles 184 and 185 of this Law, will be transferred to the Pension Savings System established by this Law, will receive from the respective institutions of the Public Pension System a recognition by the service time that they have listed on them at the date of their transfer.
This recognition will be expressed in a document called Certificate of Transfer to be issued by the ISSS or the INPEP, depending on the Institution with whom made the last quote.
The Transfer Certificate will be delivered by the ISSS or the INPEP to the Administrative Institution with which the affiliate has made the last contribution. If the affiliate is changed from the Administrative Institution, the former must pass the Certificate together with the funds.
The Administrative Institution must process for its members or the beneficiaries of these, the collection of the Certificate Transfer.
The Transfer Certificate must be paid within sixty days from the date on which the person concerned requests his/her redemption. For each day of delay, the Transfer Certificate will earn an additional interest equal to the average return for the last twelve months of the Pension Funds plus one percentage point.
Features
Art. 230.-Transfer Certificates will be issued with the following characteristics:
a) Nominations,
b) Expressed in national currency,
c) Devengan an adjustable interest rate annually from the date it is move to the Pension Savings System. This interest rate will be equivalent to the variation of the Consumer Price Index recorded in the previous year;
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d) Guaranteed by the State;
e) PAYMENTS, CAPITAL AND INTEREST, IN FIFTEEN INSTALMENTS DUE ANNUALLY AND EQUAL, FROM THE DATE ON WHICH THE AFFILIATE MEETS THE REQUIREMENTS FOR ACCESS TO BENEFITS UNDER THE LAW AND ITS REGULATIONS. THE INTEREST RATE PAYABLE SHALL BE EQUIVALENT TO THE PASSIVE BASIC INTEREST RATE PUBLISHED BY THE RESERVE CENTRAL BANK; (2)
f) Transferable by endorsement only to the Pension Fund, to the Administrative Institution with whom hire the Scheduled Income or the Insurance Company of Persons with which a Vitality Income is contracted.
Likewise, in accordance with the Trade Code, the Transfer Certificates will be issued with the name of the title, amount, place compliance with the rights it incorporates and signature of the issuer.
TRANSFER CERTIFICATES MAY REPRESENT BY MEANS OF ANNOTATIONS IN ACCOUNT OR BY A MACRO TITLE REPRESENTATIVE OF THE ENTIRE ISSUE OF THOSE CERTIFICATES. (2)
Right to Certificate
Art. 231.-All persons who opt for the Pension Savings System have been entitled to the Transfer Certificate having recorded a minimum of twelve contributions in the Public Pension System to the date of their transfer.
Form Calculation
Art. 232.-The nominal value of the Transfer Certificate at the time of issue shall be calculated as follows:
a) The average of the last twelve wages quoted up to 31 December 1996 shall be estimated at 70% and five per cent of the average of the last 12;
b) The above result shall be multiplied by the ratio that is obtained from dividing the period of contributions recorded at the time of its move to the System, expressed in years between 35;
c) The product shall be multiplied by 12 and by the actuarial factor of 10.25 if male, and by 10.77 if female; and
d) The above result will be multiplied by the following factors depending on the contribution period recorded to the date of the System affiliation:
Factor Quotes Period
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Up To 15 Years From 16 To 19 Years From 20 To 23 Years 24 To 27 Years 28 To 31 Years Of 32 Years forward
1.00 1.04 1.08 1.12 1.16 1.20
For the calculation of the Transfer Certificate, the affiliate will be able to check the listed service time with the documentation that points to the respective regulations.
For the purposes of calculation (b) of this Article, to which the INPEP has been listed for a minimum period of one year and registered in service time in the public sector as administrative workers, before 1975, or as teachers before 1978, they will be recognized for that service time, provided that the service is checked according to the respective regulations.
Once calculated the Transfer Certificate, the affiliate may request revision in the one-year period, counted from the date of issuance of the same.
TITLE IV FINAL PROVISIONS
Date of Savings System Operations for Pensions
Art. 233.-The Superintendency of Pensions will receive applications for the constitution of Administrative Institutions of Pension Funds, completed six months after the entry into force of this Law, in accordance with it and its regulations.
The Superintendence of Pensions will announce by two publications in national circulation newspapers the date of the start of the operations of the Pension Savings System, which will not be able to be informed before they are found at least two Administrative Institutions in accordance with Article 33 of the Law.
Art. 233-A.-ALL MEMBERS WHO AT THE DATE OF VALIDITY OF THIS DECREE HAVE RECEIVED SOME KIND OF BENEFIT IN ACCORDANCE WITH THE LAW OF THE SYSTEM OF SAVINGS FOR PENSIONS, BOTH IN THE PROCESS OF GRANTING AND ALREADY GRANTED, WILL CONTINUE ENJOYING THE SAME WITHOUT ANY MODIFICATION. THIS PROVISION SHALL ALSO APPLY TO THOSE WHO HAVE NOT YET BEEN PENALIZED, BUT HAVE ALREADY COMPLIED WITH ANY OF THE REQUIREMENTS LAID DOWN IN THAT LAW FOR THE PURPOSES OF THIS DECREE.
NOTWITHSTANDING THE PROVISIONS OF THE LEGISLATIVE DECREE No. 1217, DATED APRIL 11, 2003, PUBLISHED IN THE OFFICIAL JOURNAL No. 84, TOMO NO. 359, OF 12 MAY OF THE SAME YEAR, WHICH HEREBY REPEALED, WILL CONTINUE TO BE ISSUED TRANSFER CERTIFICATES COMPLEMENTARY TO ALL MEMBERS WHO HAVE COMPLIED WITH THE RESPECTIVE REQUIREMENTS TO THE DATE OF VALIDITY OF THIS DECREE.
YES TO THE DATE OF VALIDITY OF THIS DECREE, THE AFFILIATES REFERRED TO IN
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ART. 184-A OF THE LAW OF THE SYSTEM OF SAVINGS FOR PENSIONS, IF THE AGE REQUIREMENT REFERRED TO IN ARTICLE 104 (C) OF THE SAID LAW HAS BEEN MET, WITHOUT COMPLYING WITH THE TIME OF MINIMUM CONTRIBUTIONS IN ORDER TO GENERATE ENTITLEMENT TO AN OLD AGE PENSION, THEY MAY OPT FOR THE RETURN OF THE BALANCE IS MADE IN A SINGLE PAYMENT, OR USING THE MECHANISM ESTABLISHED IN ARTICLE 126 OF THE SAID LAW. (8)
NEGOTIABILITY OF THE PREVIEW TITLES
Art. 233-B.- FOR THE PURPOSES OF THE LAW OF THE SYSTEM OF SAVINGS FOR PENSIONS, THEY SHALL BE UNDERSTOOD AS PRE-VIEWING CERTIFICATES: TRANSFER CERTIFICATES, PRE-VIEWING INVESTMENT CERTIFICATES AND SUPPLEMENTARY TRANSFER CERTIFICATES.
FORWARD-LOOKING SECURITIES MAY BE THE SUBJECT OF A PUBLIC OFFERING UNDER THE SAME CONDITIONS AS THE SECURITIES MARKET LAW FOR SECURITIES ISSUED BY THE STATE AND THE CENTRAL RESERVE BANK OF EL SALVADOR.
IN ORDER TO MAKE THE PRE-VIEWING SECURITIES NEGOTIABLE ON A SALVADORAN STOCK EXCHANGE, ONLY THE RESPECTIVE ISSUANCE AGREEMENT APPROVED BY THE ISSUER SHOULD BE SUBMITTED, TOGETHER WITH A MODEL OF THE VALUE OF THE ISSUE TO BE TRADED ON THAT EXCHANGE. STOCK EXCHANGE. IF THESE CERTIFICATES HAVE BEEN ISSUED IN ACCORDANCE WITH THE LAW OF THE SYSTEM OF SAVINGS FOR PENSIONS OR SPECIAL DECREES, IT IS SUFFICIENT TO PRESENT THE MODEL CITED AND THE CORRESPONDING DECREE.
FORWARD TITLES ARE PART OF THE PENSION FUND ASSET.
THE NEGOTIATION OF THE PENSION FUNDS BY THE PENSION FUNDS MAY BE CARRIED OUT IN THE SAME WAY AS THE SECURITIES ISSUED BY THE GENERAL TREASURY MANAGEMENT ARE NEGOTIATED. (8)
Regulations
Art. 234.-The Superintendence of Pensions will propose to the President of the Republic for its approval, the necessary regulations for the operation of the System of Savings for Pensions and Public Pension System.
Additionally, the Superintendence of Pensions will issue instructions and resolutions for the implementation of this Law, which will be mandatory for the institutions audited.
Preferred application
Art. 235. This Law shall prevail over any other law than the contrarien. For its repeal or modification, it should be mentioned expressly.
Law Enforcement
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94
Art. 236.-This Decree will enter into force eight days after its publication.
GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at the twentieth day of the month of December of a thousand nine hundred and ninety-six.
MERCEDES GLORIA SALGUERO GROSS PRESIDENT
ANA GUADALUPE MARTÍNEZ MENÉNDEZ ALFONSO ARISTIDES ALVARENGA VICE-PRESIDENT
JOSÉ RAFAEL MACHUCA ZELAYA JULIO ANTONIO GAMERO QUINTANILLA VICE-PRESIDENT
JOSÉ EDUARDO SANCHO CASTANEDA GUSTAVO ROGELIO SALINAS OLMEDO SECRETARY
CARMEN ELENA CALDERON DE ESCALA WALTER RENE ARAUJO MORALES SECRETARY
RENÉ MARIO FIGUEROA FIGUEROA SECRETARY
CASA PRESIDENTIAL: San Salvador, at the twenty-three days of the month of December of a thousand nine hundred and ninety-six.
PUBLISH, ARMANDO CALDERÓN SOL, President of the Republic.
Manuel Enrique Hinds Cabrera, Minister of Finance.
Eduardo Tomasino Hurtado, Minister of Labor and Social Welfare.
D. O. No. 243 Took Nº 333 Date: December 23, 1996.
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LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
95
REFORMS:
(1) D.L. N ° 192, 9 NOVEMBER 2000; D.O. NO. 21, T. 350, 29 JANUARY 2001.
(2) D.L. NO 664, DECEMBER 13, 2001; D.O.O. NO. 241, T. 353, DECEMBER 20, 2001.
(3) D.L. N ° 333, 28 MAY 2004; D.O. NO 124, T. 364, 5 JULY 2004.
(4) D.L. N ° 336, 4 JUNE 2004; D.O. N ° 126, T. 364, 7 JULY 2004.
(5) D.L. N ° 347, 15 JUNE 2004; (DECLARED UNCONSTITUTIONAL) D.O. NO 128, T. 364, JULY 2004. AUTHENTIC INTERPRETATION : D.L. Nº 523, NOVEMBER 25, 2004; D.O. NO. 240, T. 365, DECEMBER 23, 2004.
(6) D.L. N ° 599, 2 FEBRUARY 2005; D.O. NO 40, T. 366, 25 FEBRUARY 2005.
(7) D.L. N ° 891, DECEMBER 9, 2005; D.O. NO. 238, T. 369, DECEMBER 21, 2005.
(8) D.L. No. 100, SEPTEMBER 13, 2006; D.O. No. 171, T. 372, SEPTEMBER 14, 2006.
(9) D.L. No. 277, APRIL 13, 2007; D.O. No. 82, T. 375, MAY 8, 2007.
(10) D.L. No. 1036, MARCH 29, 2012; D.O. No. 63, T. 394, MARCH 30, 2012.
EXTENSION:
D.L. N ° 437, OCTOBER 8, 1998; D.O. N ° 192, T. 341, OCTOBER 15, 1998. (ART. 184)
AUTHENTIC INTERPRETATION:
D.L. NO 62, 13 JULY 2000; D.O. NO. 152, T. 348, AUGUST 17, 2000.
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LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________
96
UNCONSTITUTIONALITIES:
* THE CONSTITUTIONAL ROOM OF THE SUPREME COURT OF JUSTICE, DECLARED UNCONSTITUTIONAL THE SECOND ARTICLE OF ARTICLE 113 OF THE LAW OF THE SYSTEM OF SAVINGS FOR PENSIONS, BY RESOLUTION No. 44-2003, PUBLISHED IN THE OFFICIAL JOURNAL No. 82, TOO 367 OF 3 MAY 2005. (26/05/05 ROM/mldeb)
** THE CONSTITUTIONAL COURT OF THE SUPREME COURT OF JUSTICE BY MEANS OF RESOLUTION IN THE ACCUMULATED CONSTITUTIONAL PROCESS No. 31-2004/34-2004/38-2004/6-2005 AND 9-2005, PUBLISHED IN THE OFFICIAL JOURNAL No. 111, TOMO 379, OF 16 JUNE 2008, DECLARES D.L. 347/2004 UNCONSTITUTIONAL, IN GENERAL AND MANDATORY (ART. 104, LIT. B AND ART. 200, LIT. B E PARAGRAPH 2. OF THE LAW), BY CONTRAVENIR LOS ARTS. 1, INC. 1. Y 2, Inc. 1º. CN. CONCERNING LEGAL CERTAINTY, ONLY WITH REGARD TO ITS RETROACTIVE EFFECT, IN SO FAR AS IT AFFECTS THE MEMBERS OF THE SYSTEM WHO, AT THE TIME OF THE REFORM, HAD COMPLETED 30 YEARS OF CONTRIBUTIONS AND WHO, AMONG OTHER THINGS, SE THEY WERE IN AN OBJECTIVELY PROTECTED LEGAL SITUATION. (02/JULIO/08 Rm/ada)
*** THE CONSTITUTIONAL ROOM OF THE SUPREME COURT OF JUSTICE, BY MEANS OF SENTENCE No. 42-2012, 61-2013 AND 62-2013 PUBLISHED IN THE D. O. No. 3, T. 406, OF 7 JANUARY 2015, DECLARES THE ARTS. 91 (m) AND 223-A UNCONSTITUTIONAL, IN RELATION TO THE USE OF THE INTEREST RATE LONDON INTERBANK OFFERED RATE OF ONE HUNDRED AND EIGHTY DAYS (LIBOR 180 DAYS) TO RETURN THE PROVISIONAL INVESTMENT CERTIFICATES ISSUED BY THE INTERIM BOND TRUST, WHICH THEY MUST ACQUIRE THE PENSION FUND MANAGERS MUST HAVE THE PENSION FUNDS WHICH THEY ADMINISTER AND MANAGE, IN VIOLATION OF THE LEGAL CERTAINTY IN SOCIAL SECURITY, IN THEIR MANIFESTATION OF THE RIGHT TO A PENSION FOR OLD AGE, ESTABLISHED IN THE ARTS. 2 INC. 1 ° AND 50 OF THE CN., RESPECTIVELY, SINCE MAINTAINING THE SAID RATE NEGATIVELY ON THE LEVEL OF PROFITABILITY THAT WILL OBTAIN THE SAVINGS OF THE CONTRIBUTORS TO THE PENSION SAVINGS SYSTEM AND ON THEIR REPLACEMENT RATES, MATERIALLY AFFECTING THE PENSIONS OF THE SAID POPULATION SECTOR, CAUSING A DECREASE IN THE MINIMUM AND ESSENTIAL INCOME TO MEET THE BASIC NEEDS AND THUS ENABLE A DECENT SUBSISTENCE TO OCCUR IN THE EVENT OF RETIREMENT; AS WELL AS BY BREACH OF SOCIAL SECURITY IN RELATION TO THE PRINCIPLE OF PROPORTIONALITY, ARTS. 50 AND 246 CN., RESPECTIVELY, AS SUCH RATE, DUE TO ITS LOW PROFITABILITY, NO IT ALLOWS TO MEET THE DEMAND FOR OPTIMAL USE OF THE SOCIAL SECURITY RESOURCES, NEGATIVELY AFFECTING THE LEVEL OF PROFITABILITY THAT WILL OBTAIN THE SAVINGS OF THE CONTRIBUTORS TO THE SYSTEM OF SAVINGS FOR PENSIONS AND ON THEIR RATES OF REPLACEMENT, WITH MATERIALLY FERTILISING THE PENSIONS OF THIS POPULATION SECTOR. (JQ/20/02/15)
**** THE CONSTITUTIONAL COURT OF THE SUPREME COURT OF JUSTICE, BY WAY OF SENTENCE No. 34-2011, AND 55-2011 PUBLISHED IN D. O. 22, T. 406, OF FEBRUARY 3, 2015, DECLARES ART. 145 INC. UNCONSTITUTIONAL. FINAL, SPECIFICALLY AS REGARDS THE MINIMUM PERCENTAGE THAT IS NOT YET TO BE APPLIED TO THE PERSON ' S PENSION, FOR VIOLATING THE PRINCIPLE OF EQUALITY PROVIDED FOR IN ARTICLE 3 OF THE CONSTITUTION.
SPECIAL PROVISIONS RELATED TO THIS LAW
-TRANSIENT DISPOSITION TO BE SECURED BY THE ISSS AND INPEP CAN
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LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
97
AFILILIED TO AFP.
D.L. N240-249, JANUARY 11, 2001; D.O. NO. 23, T. 350, JANUARY 31, 2001. EXTENSION: D.L. Nterno 369, 29 MARCH 2001; D.O. NO. 65 T. 350, 30 MARCH 2001. (It was effective May 28, 2001)
- SPECIAL PENSION EQUALIZATION PROVISIONS FOR AFFILIATES
ESTABLISHED IN THE ART. 184 OF THE AFP ACT. D.L. Nérnica 1217, 11 APRIL 2003; D.O. NO 84, T. 359, 12 MAY 2003. COMPLETELY REPEALED BY: D.L. NEULA 100, SEPTEMBER 13, 2006; D.O. NO. 171 T. 372, SEPTEMBER 14, 2006.
DECREE VETOED:
D.L. N ° 313, 29 APRIL 2004; D.O. N °, T., DE DE.
LM/ngcl 08/06/07
ROM 08/05/12
JQ 20/02/15
JQ 06/03/15
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