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Employer Contributions made to the worker’s capitalization account, periodically or occasionally, based on a prior agreement between both parties. The purpose of these savings is to increase pension amount or to anticipate retirement.
ARGENTINA and CHILE: it is not considered as taxable income.
DOMINICAN REPUBLIC: they are called “Aportes Voluntarios Ordinarios (Ordinary Voluntary Contributions)” and they are made periodically.
A person who, by being a member or by his/her relationship with a member, is entitled to receive a certain service or protection once the requirements established by the law have been fulfilled.
BOLIVIA: A Bolivian citizen, resident in the country, who had reached the age of legal majority by 31st December 1995, is a Beneficiary.
Sum of money received by the AFP to provide Individual Account administration services. Each administrator company will freely set the amount, which will be the same for all affiliates. There are diverse commission types that the AFP may charge, which will depend on each country’s regulations.
Fixed monthly amount paid by each affiliate. It is taken away from his or her individual capitalization account.
Comisión que se cobra mensualmente al cotizante y corresponde a un porcentaje de su renta imponible.
Monthly commission charged to the affiliate as a percentage of his or her taxable income.
Monthly commission charged to the affiliate as a percentage of funds in his or her individual capitalization account.
Monthly commission charged to affiliates as a percentage of the return produced by administered funds.
Monthly commission charged to pensioners as a percentage of their pension.
EL SALVADOR: may be used to remunerate programmed income administration.
Commission charged on the basis of the amounts involved in the operation.
Amount periodically deposited in the worker’s Individual Account, by virtue of a legal mandate, which is paid by the worker and/or the employer.
Additional voluntary contributions made by dependent and independent workers, with the purpose of increasing their pension or anticipating their retirement age. They are deposited into the individual capitalization account.
A member who actually contributes every month for the earnings accrued the previous month, excluding those receiving pensions from the system who continue to contribute.
Savings account exclusively owned by each affiliate, where his or her contributions are registered, as well as voluntary contributions, agreed deposits and every income or disbursement, in addition to the returns generated by them.
A pension mode purchased by a member from the Life Insurance Company of his/her choice when he/she retires, obliging the company to pay a monthly income from the time the contract is signed until the member dies, and to pay survivorship pensions to his/her beneficiaries.
Every worker who is included in the individual capitalization system of social security, having signed a contract with a pension fund administrator. He/she is entitled to the risk coverage provided by the system.
A public limited company with a single corporate purpose, charged with managing pension funds and granting and administering the services and benefits described in the law.
A fund made up of the mandatory and voluntary contributions paid by members and the yield of the investments, once commissions and benefit payments have been deducted. This fund has a net worth which is separate from that of the Administrator.
A pension mode which the member agrees with a Pension Fund Administrator, where the pension is charged against the balance that he/she holds in his/her individual capitalization account, as a result of withdrawing annually the amount expressed in units of constant value, which results from dividing the actual balance in his/her individual capitalization account each year by the capital needed to pay one pension unit to the member, and to his/her beneficiaries following his/her death.
An instrument expressed in money, issued by the social security institutions of the old system, representing the periods of contributions recorded in those institutions by contributors who join the system of individual capitalization. They represent payments designed to contribute towards the formation of the capital needed to finance pensions.
An autonomous state body with its own legal standing and net worth which, in representation of the State, exercises the function of ensuring compliance with the Law and its complementary regulations in the area of social security.
The amount of money (income) that the independent member declares monthly to the Administrator to which he/she belongs, and which serves as the basis for calculating contributions. It cannot be less than one minimum wage, nor more than the equivalent of sixty U. F.
Change of an Individual Account Balance from one Pension Fund Administrator to another, based on the affiliate’s decision and by virtue of an agreement subscribed between the affiliate and the new AFP. In general, it may be carried out by affiliates and pensioners with Scheduled Withdrawals. Most countries establish formalities and some restrictions on transfers.
