Pension fund: workers get the bone, Administrators get the meat

Santo Domingo.- The Juan Bosch Foundation on Thurs. questioned that the Social Security System’s main beneficiaries are the Pension Fund Administrators (PFA) and affirmed that they had netted profits that surpassed RD$31.0 billion as of last year.

It said while that occurs, coverage remains at its lowest levels and forecasts indicate that current members will receive “pensions of misery” upon retirement.

The statement forms part of the study “Radiography of the Pension Fund Administrators (PFA): Social Security System or big business,?” released today in a press conference.

The study, conducted by the economist Airon Fernández and social scientist Matías Bosch Carcuro, affirms that the PFAs obtain their profits “by lending the Dominican people their own money.”

It notes that the PFA’s profitability in 2017, was six times higher than the profitability of the workers’ savings and in the case of Scotia Crecer, exceeds over 10 times the profitability of the contributors’ savings. “The profits of the PFA, just in 2017, reached $4.6 billion pesos, a record number since the Social Security System was founded.”

Quoted by El Nacional, the Foundation adds that the accumulated profits topped RD$31.1 billion from 2004 to 2017.