Legal Framework of New Pension System

closed

This Multilateral Investment Fund (MIF) technical cooperation, aimed at improving a new pension system to benefit workers, has two parts: (a) establishment of a legal and regulatory framework for reform of the pension system; and (b) implementation of the reform. Part A components include: (a) draft laws and draft regulation for the new pension system, as well as the establishment of prudential investment rules for pensions funds; and (b) training for legislators aimed at increasing their awareness of problems in the current pension system and reform alternatives. The training, to be directed at members of the National Assembly, particularly members of the legislative commission that will examine the draft pension reform laws, include courses, seminars, workshops, contact with legislators in other countries, preparation of written or audiovisual material, and formulation of best practices related to other countries in the region. Part B components include: (a) support to the government for the formulation and execution of a strategy to implement reform; (b) establishment of a Pension Superintendency (SUPEN), including design and implementatin of legal, institutional, administrative, financial, and technical aspects; (c) information systems for SUPEN, including internal system and online connection to supervised entities; and (d) a training program for SUPEN personnel and other key players in the reform.