Pension companies are profiting from billions in unclaimed funds due to legal hurdles and lack of information, El Dia reports.
The pension plan companies are reportedly receiving a significant financial boon from a system plagued by legal obstacles and a lack of clear guidance for beneficiaries. This situation has led to over RD$117 billion in unclaimed pension funds, with Administradoras de Fondos de Pensiones (AFPs) – the pension fund administrators – allegedly profiting from this disarray.
Elías Báez, the director of the General Information and Defense of Social Security Affiliates Agency (DIDA), has described the country’s pension system as inherently unjust, negatively impacting both retirees and their families. He stated that approximately RD$117 billion is currently in limbo because family members lack the necessary mechanisms and information to claim what is legally theirs after a loved one passes away. This issue, according to Báez, stems from a lack of transparency and proper guidance on the required procedures.
Báez asserts that AFPs have capitalized on this widespread misinformation and their perceived lack of diligence in protecting the rights of pensioners. He offered a stark example:
“This system is so unjust that a professor who worked 35 years for the state passed away. The pension is supposed to go to his wife. But what happens? Law 379 states that for a death pension to pass to descendants, the pensioner must have authorized a 2% deduction from their pension. However, they don’t inform you of this, and so they can’t access it.”
This highlights a key problem: beneficiaries are often unaware of specific legal requirements, like the 2% deduction stipulated by Law 379, which must be pre-authorized by the pensioner for death benefits to be transferrable. This lack of clear communication at the time of pension disbursement ultimately leads to families losing out on these crucial benefits.
The combination of insufficient information and bureaucratic hurdles prevents families of deceased pensioners from accessing the funds they are owed. This situation is particularly grim when considering that many individuals might face critical financial hardship, or even death due to lack of resources, while billions of pesos remain frozen within the system.
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El Dia
El Dia
10 July 2025