Impact of Commission Charges on Dominican Pension Funds
The new Social Security Law creates entities with the aim of managing pension funds. The administrators (AFP), therefore, must guarantee two specific functions. On the one hand, registration and custody of the accounts per worker and, on the other, the efficient investment of resources. For this, the Law established separate accounting. One, for the accounts, funds and investments of the affiliates and another, for the assets and operations of the administrators. With this, control and supervision of the regulatory agent is sought. For their part, the AFPs, in order to fulfill their responsibilities, must generate resources. In this sense, the Law establishes four specific sources: 1) monthly commission for administration, 2) complementary annual commission, 3) charges for optional services and 4) interest for delays.
Impact of Commission Charges on Dominican Pension Funds
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DOI: 10.22533/at.ed.2162202219103
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Palavras-chave: Pension Funds
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Keywords: Pension Funds
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Abstract:
The new Social Security Law creates entities with the aim of managing pension funds. The administrators (AFP), therefore, must guarantee two specific functions. On the one hand, registration and custody of the accounts per worker and, on the other, the efficient investment of resources. For this, the Law established separate accounting. One, for the accounts, funds and investments of the affiliates and another, for the assets and operations of the administrators. With this, control and supervision of the regulatory agent is sought. For their part, the AFPs, in order to fulfill their responsibilities, must generate resources. In this sense, the Law establishes four specific sources: 1) monthly commission for administration, 2) complementary annual commission, 3) charges for optional services and 4) interest for delays.
- Luis Reyes
