Law No. 87-01 Creating the Dominican Social Security System

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SECRETARIAT OF STATE FOR LABOR
NATIONAL SOCIAL SECURITY COUNCIL
Law No. 87-01 that creates
The Dominican System of Social Security
Promulgated on May 9, 2001
Santo Domingo,
Dominican Republic
2001
Official Edition

Law 87-01 creating the Dominican Social Security System ii INDEX Presentation........................................................................................... vii
BOOK I CHARACTERISTICS OF THE DOMINICAN SOCIAL SECURITY SYSTEM............................................. 3
CHAPTER I GENERAL PRINCIPLES ........................................................................................................ 3
Art. 1.- Purpose of the law...................................................................................................................... 3
Art. 2.- Regulatory norms of the Dominican Social Security System..................................... 3
Art. 3.- Guiding principles of social security .............................................................................4
Art. 4.- Rights and duties of affiliates...................................................................................... 4
CHAPTER II BENEFICIARIES, BENEFITS AND AFFILIATION ............................................................. 5
Art. 5.- Beneficiaries of the system....................................................................................................... 5
Art. 6.- Basic education on social security ............................................................................. 6
Art. 7.- Financing regimes of the SDSS .............................................................................. 6
Art. 8.- Graduality of the Subsidized and Subsidized Contributory Regimes................................ 7
Art. 9.- Benefits of the Contributory Regime ................................................................................ 7
Art. 10.- Benefits of the Subsidized and Subsidized Contributory Regimes............................. 8
Art. 11.- Unique affiliation and information system ........................................................................... 8
Art. 12.- Registration of affiliates................................................................................................... 8
CHAPTER III FINANCING, CONTRIBUTION AND SUBSIDIES............................................................... 9
Art. 13.- Financing of the Contributory Regime........................................................................... 9
Art. 14.- Employer and worker contribution.......................................................................... 9
Art. 15.- Tax exemption............................................................................................................. 9
Art. 16.- Deadline for employers to pay contributions............................................... 9
Art. 17.- Contribution base............................................................................................................. 10
Art. 18.- National minimum wage .................................................................................................... 10
Art. 19.- Financing of the Subsidized and Subsidized Contributory regimes......................... 10
Art. 20.- State financing sources..................................................................................... 10
CHAPTER IV DIRECTION, REGULATION AND ADMINISTRATION ......................................................... 11
Art. 21.- Organization of the System.................................................................................................. 11
Art. 22.- Functions of the National Social Security Council...................................................... 12
Art. 23.- Integration of the National Social Security Council .................................................... 13
Art. 24.- Sessions of the National Social Security Council ....................................................... 14
Art. 25.- Comptroller General .............................................................................................................. 14
Art. 26.- General Manager of the CNSS ............................................................................................... 14
Art. 27.- Conditions to be General Manager or Deputy General Manager...................................................... 15
Art. 28.- Treasury and Social Security Information System ............................................ 15
Art. 29.- Information and Affiliate Defense Directorate (DIDA) ............................................ 16
CHAPTER V COLLECTION, PROVISION AND SUPERVISION........................................................................... 16
Art. 30.- Collection, Distribution and Payment System ........................................................................ 16
Art. 31.- Plural nature of the administration and provision of services...................................... 17
Art. 32.- Superintendencies of Pensions and of Health and Occupational Risks.................................. 18
CHAPTER VI TRANSITION PERIOD............................................................................................... 18
Art. 33.- Purpose of the transition period.................................................................................... 18
Art. 34.- Technical assistance during the transition ............................................................................ 18

Law 87-01 creating the Dominican Social Security System iii
BOOK II OLD AGE, DISABILITY AND SURVIVORSHIP INSURANCE ............................................ 19
CHAPTER I PURPOSE OF THE INSURANCE...................................................................................................... 19
Art. 35.- Purpose ........................................................................................................................ 19
CHAPTER II PENSIONS OF THE CONTRIBUTORY REGIME.................................................................... 19
Art. 36.- Affiliation to the Contributory Pension System ................................................................... 19
Art. 37.- Affiliation of Dominican citizens residing abroad....................................... 19
Art. 38.- Affiliates who remain in the current system ................................................................ 20
Art. 39.- Affiliates who enter the new Pension System.................................................... 20
Art. 40.- Affiliates to other existing pension plans.............................................................. 20
Art. 41.- Existing pension funds....................................................................................... 21
Art. 42.- Actuarial debt of the IDSS .................................................................................................. 21
Art. 43.- Recognition of acquired rights..................................................................... 22
Art. 44.- Benefits of the Contributory Regime................................................................................. 23
Art. 45.- Old age pension .............................................................................................................. 23
Art. 46.- Disability pension, total or partial.......................................................................... 23
Art. 47.- Amount of total and partial disability pension........................................................ 24
Art. 48.- Technical Commission on disability.............................................................................. 24
Art. 49.- Composition of the National and Regional Medical Commission ............................................... 24
Art. 50.- Old age unemployment pension......................................................................... 25
Art. 51.- Survivors pension................................................................................................. 25
Art. 52.- Loss of survivors pension ...................................................................................... 26
Art. 53.- Minimum pension amount of the Contributory Regime.................................................... 26
Art. 54.- Pension modalities.................................................................................................... 26
Art. 55.- Authorization and supervision of insurance companies ............................................... 26
Art. 56.- Cost and financing of the Contributory Regime............................................................. 27
Art. 57.- Maximum and minimum limit of the contributable salary................................................................... 27
Art. 58.- Incompatibility of pension and unemployment due to retirement or withdrawal ....................... 27
Art. 59.- Affiliate's personal account.............................................................................................. 28
Art. 60.- Social Solidarity Fund.............................................................................................. 28
Art. 61.- Employer's solidarity contribution.......................................................................................... 28
Art. 62.- The employer as a withholding agent........................................................................... 28
CHAPTER III PENSIONS OF THE SUBSIDIZED REGIME ..................................................................... 29
Art. 63.- Beneficiaries of the solidarity pension ................................................................................. 29
Art. 64.- Benefits of the Subsidized Regime.................................................................................. 29
Art. 65.- Amount of the solidarity pension........................................................................................ 29
Art. 66.- Survivors pension................................................................................................. 30
Art. 67.- Financing source .................................................................................................. 30
Art. 68.- Request, assignment and concession of solidarity pensions ......................................... 30
Art. 69.- Socio-economic evaluation ............................................................................................. 30
Art. 70.- Distribution of pensions............................................................................................ 30
CHAPTER IV PENSIONS OF THE SUBSIDIZED CONTRIBUTORY REGIME ......................................... 31
Art. 71.- Benefits...................................................................................................................... 31
Art. 72.- Old age pension .............................................................................................................. 31
Art. 73.- Disability and survivorship pension ....................................................................... 31
Art. 74.- Minimum pension amount of the Subsidized Contributory Regime................................. 31
Art. 75.- Survivors pension................................................................................................. 31
Art. 76.- Financing of the Subsidized Contributory Regime...................................................... 32
Art. 77.- Incompatibility and sanctions............................................................................................. 32
CHAPTER V SOCIAL SERVICES FOR THE ELDERLY............................................................ 32
Art. 78.- Special programs for older adults.............................................................. 32
Art. 79.- Social services for pensioners and retirees .............................................................. 32
CHAPTER VI PENSION FUND ADMINISTRATORS ........................................................ 33

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Art. 80.- Pension Fund Administrators (AFP) ............................................................. 33
Art. 81.- Creation of a public AFP............................................................................................ 33
Art. 82.- Minimum capital of the AFP ................................................................................................ 33
Art. 83.- Independent assets and accounting......................................................................... 34
Art. 84.- Basic records and information.................................................................................... 34
Art. 85.- Liability for damages caused to pension funds ................................... 34
Art. 86.- AFP commissions ..................................................................................................... 34
Art. 87.- On the directors of the AFP ............................................................................................. 35
Art. 88.- Obligations of the directors of the AFP........................................................................ 35
Art. 89.- Prohibited activities for the AFP...................................................................................... 36
Art. 90.- Prohibited operations without express authorization............................................................. 36
Art. 91.- Hiring of pension promoters ....................................................................... 36
Art. 92.- AFP advertising........................................................................................................ 37
Art. 93.- Merger and liquidation of AFP .............................................................................................. 37
Art. 94.- Bankruptcy of an AFP.......................................................................................................... 37
CHAPTER VII INVESTMENT OF PENSION FUNDS ............................................................... 37
Art. 95.- Pension funds ........................................................................................................ 37
Art. 96.- Investments of Pension Fund Administrators (AFP)............................... 38
Art. 97.- Investment in financial instruments............................................................................... 38
Art. 98.- Prohibited and restricted investment areas..................................................................... 38
Art. 99.- Risk classification and investment limit.................................................................... 39
Art. 100.- Administration of several investment portfolios............................................................... 39
Art. 101.- Custody of AFP investments.......................................................................... 39
Art. 102.- Reserve and use of profitability fluctuation.............................................................. 40
Art. 103.- Affiliate's right to minimum profitability ................................................................. 40
Art. 104.- Minimum profitability guarantee account ......................................................................... 40
Art. 105.- Minimum profitability asset guarantee .................................................................. 40
CHAPTER VIII PENSION SUPERINTENDENCY............................................................................ 41
Art. 106.- Guarantee of the Dominican State..................................................................................... 41
Art. 107.- Creation of the Pension Superintendence ............................................................. 41
Art. 108.- Functions of the Pension Superintendence ........................................................... 41
Art. 109.- Of the Pension Superintendent................................................................................. 42
Art. 110.- Functions of the Pension Superintendent................................................................ 42
Art. 111.- Interinstitutional Pension Committee ........................................................................... 43
CHAPTER IX INFRACTIONS AND SANCTIONS .......................................................................................... 44
Art. 112.- General principles and norms ........................................................................................ 44
Art. 113.- Non-compliance with obligations................................................................................. 44
Art. 114.- Competence to impose sanctions............................................................................ 44
Art. 115.- Magnitude of the sanctions .............................................................................................. 45
Art. 116.- Destination of fines, surcharges and interests ................................................................... 45
Art. 117.- Right to appeal........................................................................................................ 45
BOOK III FAMILY HEALTH INSURANCE ........................................................................................ 46
CHAPTER I PURPOSE, RIGHTS AND PROTECTION........................................................................... 46
Art. 118.- Purpose of the Family Health Insurance (FHI) ................................................................ 46
Art. 119.- Risks covered by the Family Health Insurance (FHI)................................................... 46
Art. 120.- Family selection of services................................................................................... 46
Art. 121.- Impediment of monopolistic practices and imbalances ................................................ 46
Art. 122.- Prohibition of concentration of ownership and control.............................................. 47
CHAPTER II BENEFICIARIES AND BENEFITS ..................................................................................... 47
Art. 123.- Beneficiaries of the Contributory Regime........................................................................... 47
Art. 124.- Temporary conservation of the right to health services............................................... 47
Art. 125.- Beneficiaries of the Subsidized Regime............................................................................ 48

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Art. 126.- Beneficiaries of the Subsidized Contributory Regime........................................................ 48
Art. 127.- Benefits of the Contributory Regime .......................................................................... 48
Art. 128.- Benefits of the Subsidized and Subsidized Contributory Regimes......................... 49
Art. 129.- Basic Health Plan....................................................................................................... 49
Art. 130.- Ambulatory pharmaceutical benefits....................................................................... 49
Art. 131.- Sickness subsidy ................................................................................................ 50
Art. 132.- Maternity subsidy.................................................................................................. 50
Art. 133.- Complementary health plans................................................................................... 50
CHAPTER III CHILD CARE CENTERS..................................................................................................... 50
Art. 134.- Protection of the minor through child care centers ....................................................... 50
Art. 135.- Services of the child care centers................................................................................ 50
Art. 136.- Financing of Child Care Centers ..................................................................... 51
Art. 137.- Functions of CONDEI ................................................................................................... 51
Art. 138.- National Council of Child Care Centers (CONDEI)...................................................... 51
Art. 139.- Supervision of Child Care Centers ......................................................................... 52
CHAPTER IV COST AND FINANCING .............................................................................................. 52
Art. 140.- Cost and financing of the Contributory Regime........................................................... 52
Art. 141.- Elimination of double contribution................................................................................... 53
Art. 142.- Financing of the Subsidized Regime ........................................................................ 53
Art. 143.- Limit of the contributable salary ........................................................................................ 53
Art. 144.- The Employer as a withholding agent ........................................................................ 53
Art. 145.- Employer's liability for damages and losses.................................................. 54
Art. 146.- Financing of the Subsidized Contributory Regime.................................................... 54
Art. 147.- Territorial allocation of resources............................................................................... 54
CHAPTER V RISK ADMINISTRATORS AND NATIONAL HEALTH INSURANCE
.................................................................................................................................. 54
Art. 148.- Health Risk Administrators (HRA) ................................................................. 54
Art. 149.- Constitution of the HRAs and the NHI................................................................................. 54
Art. 150.- Minimum requirements to qualify as HRA or NHI .................................................... 55
Art. 151.- Licensing of Health Risk Administrators (HRA)........................................................... 56
Art. 152.- Articulation of care levels............................................................................ 56
Art. 153.- Prior authorization to perform certain acts .................................................... 56
Art. 154.- Financial, technical and administrative autonomy ............................................................... 57
Art. 155.- Hiring of health insurance promoters .......................................................... 57
Art. 156.- Local Health Risk Administrators............................................................... 57
Art. 157.- Composition of local HRAs or NHI ......................................................................... 58
Art. 158.- Intervention in case of irregularity ............................................................................. 58
Art. 159.- National Health Insurance (NHI).................................................................................... 58
CHAPTER VI 59
HEALTH SERVICE PROVIDERS........