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Santo Domingo.- The Chamber of Deputies on Wednesday passed a bill  in two roll calls that slashes the Pension Fund Administrators’ (AFP) annual profits from 30% to 15%.

The bill had been passed in the previous legislature, but was about to expire. It will now go to the Senate.

The legislation amends Dominican Social Security System Law 87-01, and stipulates that all pension benefits granted under the Contributory Scheme will be updated annually, according to the Central Bank’s Consumer Price index (CPI).

It also stipulates that the National Social Security Council will be afforded the relevant regulations.

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COMMENTS
2 comment(s)
Written by: bernies, 10 Mar 2016 11:18 AM
From: Dominican Republic, Juan Dolio
It was about time, too freaking long. These banks were getting 30% just for using the work force money because they are not managing anything as far as I know.
Written by: chillinout, 10 Mar 2016 11:46 AM
From: Dominican Republic
Is this for profits? Anything to do with a pension 30% is outrageous. Another brain dead contract or just another corrupt kickback contract. Hedge funds normally get 2% of assets and 20% of profits..

Normal investment/pension managers of state investment and other plans get a fixed % fee of the asset value and it is usually a fraction of 1% for large amounts.

Also remember not only does the pension fund manager get fees but when they buy and sell assets those parties also collect fees from the stakeholders funds. If dealing with hedge funds and venture cap funds profit fees can be 15% to 30% as well.

And the higher the reward the more likely the risk level will be increased. After all, the manager is not risking his own money.


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