An ongoing debate on who gets a cushy government pension disguises the reality that pension plans in the DR for the general public suck. In the Dominican Republic, financial institutions control and have impeded improvements to the pension law to increase the pensions people receive at retirement. The general public in the social security system will receive at retirement around 25% of the last earned wages and retirees lose their health plans.
This low level of compensation at retirement does not apply to officers at several government entities, including the Central Bank or National Congress or the state university UASD. All those entities have pensions that are similar to the earnings of the person when on the job and in most cases, those who retire get to keep their generous health plans.
The other way to get a cushy pension is to get a special one, allowed by provisions of Pensions Law 379-81. The law was enacted before Congress had reformed the Social Security System, establishing the pension plans for the general public.
The presidential candidate for the Dominican Liberation Party (PLD) Abel Martinez this week presented a long list of pensions granted by the Dominican government of pensions that are more similar to those of the privileged government entities.
The pensions are usually announced as recognition of the merits of the person to Dominican society. Now, the presidential candidate of the Dominican Liberation Party (PLD) says the Abinader administration is using the cushy pensions to benefit those in its favor. Martinez says more than half of the pensions generously awarded by the Abinader administration are for political reasons and evidence “serious distortions” in violation of Pensions Law 379-81
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Pensions Law 379-81
8 May 2024