DR1 Daily News - Dominican Republic

Diario Libre reports that the passing of Law 13-20 with changes to Pension Plan Law carried out at the end of the Medina administration has resulted in 4% more earnings for the Pension Fund Administrators (AFPs) than in 2020 and 2019.

The amendment to the law reduced the commission but broadened the base on which this would be applied, resulting in the bonanza for the companies.

The Superintendency of Pensions, in its quarterly bulletin, reports that AFPs earned RD$19.05 billion in commissions in the first half of the year.

Opponents to the requested amendments had alerted this would happen, but the ruling party had the majority in Congress to pass the changes.

The Pension Plan Law has been criticized as being drafted to benefit financial companies not so the actual would be beneficiaries of the pensions.

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