Pension Reform : Return of Balances to Non-Pensioned Salvadorans Residing Abroad
By means of Legislative Decree Nº739 dated September 24, 2020, the Legislative Assembly of the Republic of El Salvador decreed the following:
- Non-pensioned Salvadorans residing in a foreign country, regardless of their age, may request the return of their individual pension savings account balance; as long as they prove that they have a permanent regular immigration status abroad. The refund request will proceed only once and must be resolved within a maximum of 30 working days, as from its interposition and presentation of the complete documentation. If the presentation is made, the Salvadoran will return to the system, and must comply with the requirements to enjoy the respective benefit.
- Likewise, in case the affiliate suffers from a serious terminal illness and it has been ruled by a private physician or a public institution, the Disability Qualifying Commission must validate the medical opinion within 15 working days; for such purposes, the administrative institution must send the affiliate’s request to the referred Commission within 3 working days. With said validation, the respective administrative institution must proceed to return the balance of the affiliate’s individual pension savings account within 5 working days; in case of having transfer certificates and/or complementary transfer certificates, corresponding to the affiliates of the Salvadoran Social Security Institute and the National Institute of Public Employees’ Pensions, these institutions must transfer the corresponding information within 15 days and the balance must be returned within 30 days.
Through Session Nº CN-17/2020, celebrated on October 21, 2020, the Committee of the Central Reserve Bank of El Salvador established provisions applicable to DL Nº739:
Requirements for return to non-pensioners residing in foreign countries
- The foreign affiliate that requests the return of the balance of the CIAP, must present the corresponding request to the respective AFP, this request must contain at least the following information:
- Logo and full name of the AFP.
- Name of the application or form in question.
- Application number or form, as applicable.
- Data of the foreign affiliate:
- Name of the foreign affiliate.
- Sex of foreign affiliate.
- NUP.
- Family status.
- Nationality.
- Valid identification document (passport, residence card) indicating document number, place and date of issue).
- Residence address.
- E-mail.
- Status of the foreign affiliate: Labor relationship indicating if he is a dependent or independent contributor or if he is unemployed.
- Information of the banking institution where the foreign affiliate wishes to receive the benefit deposit.
- Place and date of presentation of the application.
- Signature of the applicant.
- Stamp and signature of the employee authorized by the AFP to receive the application.
Requirements for refunding the balance of the pension due to serious illness
- The application for a refund due to serious illness must contain at least the following information:
- Logo and full name of the AFP.
- Name of the application or form.
- Application number or form, as appropriate.
- Data of the foreign affiliate:
- Name of the foreign affiliate.
- Sex of foreign affiliate.
- NUP.
- ISSS or INPEP membership number, or both, as appropriate.
- Family status.
- Nationality.
- Identification document used (DUI, passport, residence card) indicating document number, place and date of issue).
- Full address.
- Affiliate’s status.
- Employment relationship (dependent or independent contributor, unemployed).
- Place and date of application.
- Signature of the member or person authorized by the member to sign on his/her behalf the request for reimbursement of the balance due to serious illness.
- Stamp and signature of the employee authorized by the AFP to receive the application.
Once the application has been received and it has been proven that the foreign affiliate meets the requirements for a balance refund, the AFP will determine the amount to be refunded by multiplying the total of accumulated dues as of the cut date by the dues value in effect as of the date of the CIAP refund. Likewise, the AFP shall issue a resolution for the refund of the balance by attaching the updated CIAP statement, so that the foreign affiliate shall be given the total amount saved with its CIAP.
