President Danilo Medina announced during his 27 February 2019 rendition of accounts speech that he has sent to Congress the Social Security Bill that contemplates a redistribution of the profits generated by the national social security system. Banks own the majority of the Administradoras de Fondos de Pensiones (AFP) companies and report a 30% yield. The President explained the bill submitted to Congress proposes a gradual reduction of their profits to reach 0.85% in 12 years. He said this would mean a redistribution of RD$40 billion in the next 12 years instead to pension plan holders.
Furthermore, he pointed out contemplated in the reforms are provisions so that thousands of companies and public entities that are in arrears with the IDSS can put their social security payment plans in order. This will benefit around 150,000 workers.
Moreso, the President announced the Executive Branch would be sending to Congress a bill to definitely close the Dominican Institute of Social Security (IDSS), as contemplated in the Dominican Social Security System Law 87-01. Employees of the IDSS will be transferred to other government entities.
Read more in Spanish:
CDN
Listin Diario
28 February 2019