In a forum held by the General Directorate of Retirements and Pensions in charge of the State (DGJP)the president of the Social Security Foundation for all, Arismendy Diazassured that 85% of Dominican workers will receive insufficient pensions due to job instability.
He described this situation as “critical” and explained that this will be due to the fact that the employee will not be able to contribute for the 360 months established by Law 87-01 that creates the Dominican Social Security System (SDSS).
Therefore, as a forecasting strategy, he suggested raise individual capitalization to 16% in a phased process of 8 years to double the current amount of the total pension.
“In many countries of Latin Americacontributions to the pension system exceed the 15% that we are proposing. So we cannot continue to be the tail in a country that has sustained economic progress,” he said.
Likewise, Díaz explained that this suggestion is also one of the challenges facing the reform of the Dominican individual capitalization system.
As well as challenges raise the Social Solidarity Fund (FSS) to 4.8% to ensure adequate pensions for workers with insufficient contributions; extend the contribution years; reduce the commission of the Pension Fund Insurers (AFP) up to 0.5% annually on the accumulated fund and affiliate self-employed workers.
In the forum “Social impact of pensions in the Dominican Republic, poverty reduction and progress,” Díaz pointed out that there are at least six factors that limit the amount of individual pensions, despite the fact that workers accumulate trillions of pesos and their contribution represents 18% of the Gross Domestic Product (GDP).
Among them, he pointed out the reduction of the contribution from 12% to 9.97%; the absence of competition from the Pension Fund Insurers (AFP); failure to deliver the recognition bonus; increased life expectancy; fluctuations in the labor market and the lack of the Subsidized Contributory Regime.
“The workers have become, despite the limitations, the main shareholders of the country’s economic development, because they already have 1.3 million accumulated assets in the individual capitalization system,” he said.
However, he assured that, despite this accumulation, “it will not be enough to guarantee decent pensions and sustainable for more than 5 million workers between assets and contributors.”
Pensions granted
He reported that the pensions granted have grown by 177.6% between 2020 and 2026.
He explained that in August 2020 there were a total of 156,536 members and currently there are 272,713; that is, an increase of 119 thousand in five years.
Pensioners with health insurance
He assured that from 2020 to 2025, pensioners with health plans increased from 88,128 to 109,856. That is, there was an increase of 24.7%.
While in 2025, 69.5% of pensioners requested health services. He National Health Insurance (Senasa) It provided more than 6 million services for a budget of more than 3,871 million.
The forum was held at Pedro Henríquez Ureña National Librarywas headed by the director of the DGJPJuan Rosa, and participated, in addition to Arismendy Díaz Santana, the director of Studies of the Superintendency of Pensions (SIPEN)Antonio Giraldi, and the vice minister of Treasury and Heritage of the Ministry of Finance and EconomyDerby of the Saints.
