10 frequently asked questions about pensions in the Dominican Republic, answered by SIPEN

The issue of pensions is one of the most talked about and debated topics among the Dominican population. There is a great deal of frustration and confusion surrounding this issue, and many express their concerns due to the lack of information the average citizen has about pensions.

Below, the Superintendency of Pensions (SIPEN) answers some of the main questions regarding the pension program in the Dominican Republic:

What is a Pension Fund Administrator (AFP)?

They are financial companies established in accordance with the country’s laws. Their sole purpose is to manage the personal accounts of members, invest pension funds appropriately, and grant and administer the benefits of the pension system.

How can I join an AFP? / Can a non-salaried (self-employed) employee contribute to social security?

Workers who start an employment relationship as salaried employees have the right to choose an AFP within thirty (30) days, whether public or private. Suppose the worker does not select an AFP by the end of this period. In that case, the worker will be deemed to have authorized the employer to automatically enroll them in the AFP, where most of the employer’s employees are enrolled.

The Social Security System provides for a Subsidized Contribution Scheme for self-employed workers. However, this scheme has not yet come into force.

How do I know which AFP I am affiliated with?

You can contact the Superintendency of Pensions either through the website, at www.sipen.gob.do, by selecting “Services” and then “Check your AFP,” or by phone at 809-688-0018.

Can I transfer to another AFP? What should I do?

Members will have the right to change AFP once a year, provided they have made a minimum of six (6) contributions in a year, with the requirement of giving 30 days prior notice to the AFP with whom they are affiliated.

To make a transfer, members must go to the AFP, where they are enrolled with their identity card, and complete the corresponding form, which they will deposit in person at the AFP to which they are transferring.

I am Dominican, and I am going to live outside the country. What happens to my contributions? Can I claim them with proof that I live abroad?

Your savings remain invested in your individual capitalization account and continue to generate returns for you, growing daily so that you will have the most money available to retire when you reach retirement age.

Remember, our employer and our contributions to the individual capitalization account are savings for the future to be used when it is time to retire. Therefore, they can be withdrawn in the ways provided by law, regardless of my nationality or whether I reside outside the country.

If I have two or more jobs, must I register for each one?

No, each worker registers once, which applies to all your jobs and income received from them. Each of your employers must register you on their payroll with the Social Security Treasury (TSS) and make the monthly payment deducted from your income, together with the contribution they must make on your behalf to your Capitalization Account.

What can I do if my employer stops paying Social Security for a specific time? Where can I report this situation?

You can contact the Member Information and Defense Office (DIDA) and file a claim so that it can forward your case to the Social Security Treasury (TSS), which will audit your employer to correct the situation.

What will happen to my funds if the AFP I am affiliated with goes bankrupt?

Your Individual Capitalization Account (CCI) will be transferred to another AFP. Within 30 days, the member will have the right to choose which AFP they wish to transfer to.

What types of pensions or benefits are available in the Contributory System?

Old age pension;

Old-age pension;

Total or partial disability pension;

Survivor’s pension;

Refund of balance due to late enrollment;

Refund of balance due to terminal illness.

Is the right to survivor’s pensions lost?

Previously, the member or legal beneficiary had to apply for the pension within the first seven years from the date of the member’s death, and if they did not do so within this time, they lost their right to a pension.

Currently, to apply for a survivor’s pension, legal beneficiaries have a limitation period for disability and survivor’s pensions of up to 20 years, which is gradually extended:

10 years (2023)

13 years (2025)

16 years (2027)

20 years (2029)