Hernando Pérez Montás, the country’s most experienced insurance actuarial analyst, publishes his proposal for amendments to the national pension plan (AFPs). He says the Dominican Republic is the only remaining country in Latin America still applying the pension plan scheme that collapsed in Chile.
Pérez Montás highlights that the significant deficiencies of the plan have resulted in parallel plans outside of the system. He says the amendments would moderate the extensive issuing of beneficiaries of comfortable pensions that are being rolled out by the Presidency through a separate Presidency fund. Government officials, including officials of decentralized agencies, and Congress, are on pension plan schemes outside of the general scheme.
Pérez Montás says he was motivated to write to respond to remarks made by influential people. He is concerned that Vice President Raquel Peña has agreed with those that say that pensions in the Dominican Republic are low because wages are low. He points out that even if wages were increased 200-300%, the effects of this would not be felt for 10/20 years.
He asks what will happen with the production costs and inflation if wages are increased disproportionately.
Pérez Montás is especially critical of the AFP pension plan companies. He criticizes their earnings are more than even the high yields of the very profitable banking system.
Read the article by Pérez Montás:
Diario Libre
DR1 News
13 October 2022