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FIAP > Press Releases > FIAP president meets with authorities of the government of El Salvador to discuss the Pension Reform

FIAP president meets with authorities of the government of El Salvador to discuss the Pension Reform

2 April, 2012

source:FIAP based on www.asafondos.org and www.elsalvador.com

The President of the International Federation of Pension Fund Administrators (FIAP) travelled to El Salvador last Tuesday March 27, 2012, to meet with different authorities (the Minister of Finance, the President of the Central Bank, The Deputy Minister of Finance, the Superintendent of Pensions and the Finance Commission of the Legislative Assembly) to discuss the main issues of a controversial reform to the country’s pension system.

The FIAP president also held press conferences with the two most important newspapers in the country and appeared on the two TV programs with the highest ratings.

As is known, the proposed reform consists in increasing the mandatory investment of the Pension Fund Managers in certain government securities (Pension Investment Certificates, CIP) from 30% to 45% of the fund (US$ 6,000 million) at 1.3% nominal interest. If this reform is not approved, the government will not have the resources for paying the pensions of the former PAYGO system. The reform also considers reducing the management commission of the AFPs by 0.5 percentage points (this commission is set by law and includes the Disability and Survival Insurance).

At the foot of this page you can download the press release (only the Spanish version) of March 28 to a local newspaper (Diario El Salvador) in which the FIAP President makes his declaration s on the matter.

Last March 30, the Salvadorian Association of Pension Fund Managers (ASAFONDOS) also issued a press release (download at the foot of this page, only the Spanish version) setting out its position on the reform.

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