The Chamber of Deputies approved a proposal yesterday, Tuesday 24 March 2015, to change law 87-01 that created the Dominican Social Security System, in order to reduce the profit made by the Pension Funds Administrators (AFP). The new ruling means that the profit for operators of the pension plan funds is reduced from 30 to 15%. This was approved with 122 yes votes in the first reading and 108 in the second.
The new law modified Article 44 that establishes that all pensions awarded under the Contributory Regime will be increased every January in line with the Consumer Prices Index as set by the Central Bank.
It also establishes that the cost of financing the Family Health Insurance Plan for the pensioners will be 3% of the total pension fund and that the maximum age in the mortality tables, used to calculate pension amounts, will not be more than 90 years old.
Deputy Ramon Cabrera, who brought the proposal to the Chamber, said that Dominicans did not realize how much profit the AFPs were making and that thanks to efforts by Deputies they had lowered the commission they took from 30% to 25% but this was still too high and the correct amount should be 15%. He pointed out that in five years they had taken RD$15.57 billion in profits, which the legislator described as an aberration.
Diputados aprueban reducir un 15% de las ganancias de las AFP