Sipen: Pension funds reach RD$275,654.1 million
Confirmation nominal profitability has been decreasing since 2012
Amílcar Nivar
SANTO DOMINGO. The head of the Pensions' Superintendence (Sipen), Joaquin Geronimo, announced yesterday that the assets in pension funds, up to 30 June this year, have risen to RD$275,654.1 million, and confirmed that the nominal profitability had been seen to decrease since 2012 when it reached a limit of 14.54%, but later stood at 11.76%.
"The same happened with the real profitability, it fell from 10 percent to 7.47 percent, which is a concerning issue, and has to do with the little movement there is in the capital markets to offer new investment opportunities for pension funds", said the government official.
Nonetheless, when presenting the quarterly bulletin number 44, which contains statistics up to 30 June 2014, Geronimo highlighted that the real historic annualized profitability of Pension Funds is at 4.44% which is the highest in their history, and in spite of very minor growth, according to what he understands, this behavior shows that the Pension Funds are moving towards the objective which they have always had from the beginning, to obtain a real profitability of 5%.
In addition, the data from the Superintendence reflects that the assets of the Individual Capitalization of the Pension Funds are managed by five Pension Fund Administrators (AFP), of which RD$76,879.8 million are in AFP Popular, representing 35.7%; RD$53,571.6 million are in AFP Scotia Growth, which is 24.9%; RD$47,843 million are in AFP Seed fund, which represents 22.2%; in AFP Reserve there are RD$35,001.4 million which is 16.2%; and in AFP Romana there are RD$2,219 million representing just 1%.
As far as the beneficiaries are concerned, Geronimo said that in the period January - June 2014, they issued 217 disability pensions, 183 widows/widowers pension and only two for programmed retirement due to old age, linked to late entry to the scheme.
He also said that "during the ten year period, they had managed a total of 53,844 requests to hand over funds to late entry members. They had awarded 19 pensions to those late entry members who qualified for a pension, they had handed back the pension to 50,012 applicants, almost 99.99% of those who asked for them.
In addition, the superintendent said that in this area they had turned down 3,765 requests and there were 48 requests waiting to be looked at.
Returning funds to late entrants
Geronimo said, that still on the table, was the issue which was looking to allow late entry members to take out their funds. "This is an issue which is on the table to be discussed at the National Council of Social Security, because under the actual established rules and which have been in place since 2005, it is not possible to hand back money to any late entry member, whose money accumulated in their individual capitalization account would be sufficient to obtain a pension which is equivalent to or higher than the minimum", he said.
"The same happened with the real profitability, it fell from 10 percent to 7.47 percent, which is a concerning issue, and has to do with the little movement there is in the capital markets to offer new investment opportunities for pension funds", said the government official.
Nonetheless, when presenting the quarterly bulletin number 44, which contains statistics up to 30 June 2014, Geronimo highlighted that the real historic annualized profitability of Pension Funds is at 4.44% which is the highest in their history, and in spite of very minor growth, according to what he understands, this behavior shows that the Pension Funds are moving towards the objective which they have always had from the beginning, to obtain a real profitability of 5%.
In addition, the data from the Superintendence reflects that the assets of the Individual Capitalization of the Pension Funds are managed by five Pension Fund Administrators (AFP), of which RD$76,879.8 million are in AFP Popular, representing 35.7%; RD$53,571.6 million are in AFP Scotia Growth, which is 24.9%; RD$47,843 million are in AFP Seed fund, which represents 22.2%; in AFP Reserve there are RD$35,001.4 million which is 16.2%; and in AFP Romana there are RD$2,219 million representing just 1%.
As far as the beneficiaries are concerned, Geronimo said that in the period January - June 2014, they issued 217 disability pensions, 183 widows/widowers pension and only two for programmed retirement due to old age, linked to late entry to the scheme.
He also said that "during the ten year period, they had managed a total of 53,844 requests to hand over funds to late entry members. They had awarded 19 pensions to those late entry members who qualified for a pension, they had handed back the pension to 50,012 applicants, almost 99.99% of those who asked for them.
In addition, the superintendent said that in this area they had turned down 3,765 requests and there were 48 requests waiting to be looked at.
Returning funds to late entrants
Geronimo said, that still on the table, was the issue which was looking to allow late entry members to take out their funds. "This is an issue which is on the table to be discussed at the National Council of Social Security, because under the actual established rules and which have been in place since 2005, it is not possible to hand back money to any late entry member, whose money accumulated in their individual capitalization account would be sufficient to obtain a pension which is equivalent to or higher than the minimum", he said.
Amílcar Nivar
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