Procedural Instructions for Handling the Transfer of the Remaining Pension Fund of AFP Profuturo

SSP
INSTRUCTIVO No. SAP 06/2006
PROCEDURAL INSTRUCTIONS FOR HANDLING THE TRANSFER OF THE REMAINING BALANCE OF THE AFP PROFUTURO PENSION FUND. Approval: 13/10/2006 Validity: 13/10/2006 The Pension Superintendence, in the exercise of the legal powers contemplated in letter b) of article 13, of the Organic Law of the Pension Superintendence, ISSUES the following Instruction:
INSTRUCTIVO No. SAP 06/2006
PROCEDURAL INSTRUCTIONS FOR HANDLING THE TRANSFER OF THE REMAINING BALANCE OF THE AFP PROFUTURO PENSION FUND TITLE I GENERALITIES
I. OBJECTIVE
Define the operational and accounting procedures to be followed by Pension Fund Managing Institutions, to handle the remaining balance of the Pension Fund transferred in the year 2003 from AFP Profuturo, in Liquidation.
II. LEGAL BASIS
The one established in letter u) of article 5 of the Organic Law of the Superintendence, through which the Pension Superintendence is authorized to issue the technical norms that facilitate the application and execution of the Law and its respective regulations.
III. DESIGNATIONS AND ABBREVIATIONS
In the text of this Instruction, the following designations and abbreviations will be used:
HL: Work History
AFP: AFP CONFIA, S.A. and/or AFP CRECER, S.A.
SAP: Pension Savings System.
Law: Law of the Pension Savings System.
Fund: Pension Fund.
CIAP: Individual Pension Savings Account.
AFP Profuturo: AFP Profuturo, S.A., in Liquidation. (1) Superintendence: Pension Superintendence. DNP: Declaration and non-payment. (1) Shortfalls: Declared and paid payrolls, but for an amount lower than the corresponding amount to the reported payroll. (1)

SSP
INSTRUCTIVO No. SAP 06/2006
PROCEDURAL INSTRUCTIONS FOR HANDLING THE TRANSFER OF THE REMAINING BALANCE OF THE AFP PROFUTURO PENSION FUND. Approval: 13/10/2006 Validity: 13/10/2006 TITLE II PROCEDURE FOR DELIVERY OF THE REMAINING VALUE
1. As a first step, AFP Profuturo will deliver the remaining value of the Fund it administered,
which amounts to $ 81,008.61, distributing it in equal parts to the AFPs; this value will pass to form part of the Equity, and must be invested in Fund shares. The remaining balance of the Fund corresponds to Pending Contributions to be Applied, not identified to date, due to lack of documentation. Most of them are bank deposits (without any receipt), received at the start of operations of the SAP.
2. The AFPs that receive the money will register it in the Fund's Equity, investing it in Fund shares,
through the use of the following accounts:
327. Remaining Balance of Contributions from Ex-members of AFP Profuturo
327.01 Unidentified Contributions from Ex-members of AFP Profuturo
3. The aforementioned account will be charged when it is proven through a copy of the paid payroll to AFP
Profuturo, S.A., or other probative document, that such contributions have not been credited in the CIAP of the affiliates.
4. The requesting affiliate will present themselves to the AFP or Previsional Institute where they are affiliated and
attach a copy of the payrolls of the paid contributions or another document with probative value, according to what is regulated in Art. 18-A of the Law, regarding admissible documents, except for the use of the Sworn Declaration, which will not be taken as valid for the verification of the contributions made to AFP Profuturo.
5. The settlement process will be carried out: 1) Through investigation of the payrolls that we
currently have to see if they are or are not credited; and, 2) Based on the procedure mentioned in the previous paragraph.
6. The procedure for crediting the identified contributions will be the one described in the
Instruction for the Crediting of Individual Pension Savings Accounts.
If the period to be applied corresponds to the administration of the CIAP in AFP Profuturo, the charge to account 327.01 will be made for the amount corresponding to the mandatory and voluntary contributions, if any, the AFP commission amount, including the insurance premium, will be carried to account 326.01, through which it will be allowed to credit, the complementary capitals that AFP Profuturo has pending to pay, to the AFP that is administering the accounts of the beneficiaries of such capitals. To identify transfers of resources to the CIAPs, coming from the transferred remaining balance, in due course, from the Pension Fund of AFP Profuturo, the Pension Superintendence has defined operation codes for the referred transactions in the CIAPs, in order

SSP
INSTRUCTIVO No. SAP 06/2006
PROCEDURAL INSTRUCTIONS FOR HANDLING THE TRANSFER OF THE REMAINING BALANCE OF THE AFP PROFUTURO PENSION FUND. Approval: 13/10/2006 Validity: 13/10/2006 that the affiliates affected by these can distinguish the origin of their credits; these codes are the following: (4) Concept (4) Code (4) Mandatory Contribution Employer of Ex-member of Profuturo 27 Mandatory Contribution Ex-member of Profuturo 100 Voluntary Contribution Ex-member of Profuturo 101 Commission destined to Complementary Capital 102
7. In the case that one of the AFPs exhausts its available resources and needs more, it will request it
in due course, through a simple note to the other AFP, with a copy to the Superintendence, so that it transfers them, in case the latter still has available resources. To credit complementary capitals pending to be paid by AFP Profuturo, said value will be debited from account 326.01, in proportion to the complementary capital required for the payment of the beneficiaries of ex-members of AFP Profuturo. (4)
8. The responsibility of the AFPs extends until the transferred resources are exhausted.
9. The movement of said Fund will be reflected in the Daily Reports of the Pension Funds of the
AFPs through specific accounts for this type of operation and additionally, the AFPs must have views, online, updated so that the Superintendence can verify the use of the administered funds; including in said views, the data affected by the movement itself, such as the NUP, month of accrual, amount, crediting date, etc.
10. There will be no claims by affiliates transferred to the IPSFA, since at the date of the transfer of the
remaining balance, those values would have already been settled; in case of claims from any affiliate to said Institute, it must be referred to the Superintendence to resolve their situation. TITLE III OPERATIVE MECHANISM OF THE DOCUMENTATION AFP Profuturo will deliver, to the AFPs, original and copy of all the documentation it has in its possession. The documentation to be delivered consists of physical payrolls: in one AFP they will be original payrolls (to the one that had the greater number of transfers from AFP Profuturo, in December 2003); while in the other, they will be photocopies only. The objective is that both have the same documentation, for the agile identification of the holders of records not identified until date, in case of possible transfers of affiliates between them. The AFPs may store the information transferred from AFP Profuturo, through microfilms or other mechanisms that allow the rapid location of the payrolls, prior authorization of the Superintendence.

SSP
INSTRUCTIVO No. SAP 06/2006
PROCEDURAL INSTRUCTIONS FOR HANDLING THE TRANSFER OF THE REMAINING BALANCE OF THE AFP PROFUTURO PENSION FUND. Approval: 13/10/2006 Validity: 13/10/2006 TITLE IV (1) PROCEDURES FOR HANDLING REAL ARREARS

1. With regard to the handling of the information that supports the balance of real arrears (DNP and
   Shortfalls), AFP Profuturo will transfer to the AFPs, for their administration and custody, an electronic file containing the following information and structure:
   Payroll Header
   Payroll Details
   Payroll Deposits
   Payroll Errors
   Mandatory Contribution
   Mandatory Contribution affiliate
   Voluntary Contribution affiliate
   Commissions
   Affiliate Registry (NUP, names, surnames)
   Employer Registry (NIT, trade name)
   Affiliate_employer Relationship
   Regarding the accounting record of the value of the arrears, the following sub-accounts have been established: (4)
   122.04 Pending Collection Contributions (DNP) of the AFP Profuturo Pension Fund
   227.04 Pending Collection Contributions (DNP) of the AFP Profuturo Pension Fund
2. When any employer presents themselves to one of the AFPs, with the intention of paying the
   arrears, a calculation must be made for their settlement according to what is provided in Chapter XI “Treatment of unpaid contributions”, of the Regulation of Collection of Contributions to the Pension Savings System, so that they can cancel what is owed.
3. AFP Profuturo will deliver a detailed file with the historical share values used
   during its management.
4. For the calculation of the lost profitability in the CIAP of the workers, the share value of the AFP where the calculation is made at the date the debt originated will be used. For the other parameters of the profitability calculation, what is established in Instruction SAP 01/99 “Instruction for the crediting of individual pension savings accounts, collection of commissions and handling of backlogs by Pension Fund Managing Institutions” will be applied. (3)

SSP
INSTRUCTIVO No. SAP 06/2006
PROCEDURAL INSTRUCTIONS FOR HANDLING THE TRANSFER OF THE REMAINING BALANCE OF THE AFP PROFUTURO PENSION FUND. Approval: 13/10/2006 Validity: 13/10/2006
5. In case of recovery of shortfalls, the distribution of the payment complement must be
applied proportionally to the total owed, according to the payment precedence recorded in
article 66 of the Regulation of Collection of Contributions to the Pension Savings System and to roman IV of Instruction SAP 01/99 “Crediting of Individual Pension Savings Accounts, collection of commissions and handling of backlogs, by Pension Fund Managing Institutions.
6. The AFPs are obliged to receive the payment receipts of the contributions owed by
the employers, the lost profitability and late interest on the contributions of the affiliates coming from AFP Profuturo.
7. The AFPs will credit the value of the contributions corresponding to their affiliates; of the
remaining contributions they will inform the other AFP, so that it verifies if the NUPs belong to it, and then carry out the respective transfer of resources.
8. The AFPs will credit the contributions corresponding to their affiliates; the remaining
contributions will be informed to the other AFP, so that it verifies if the NUPs belong to it; if so, it will carry out the transfer of the contributions and the commissions, to integrate the balance of Complementary Capital in question. (4)
9. When an employer cancels debts of ex-members of AFP Profuturo, the percentages of the
insurance premium and commission, will pass to integrate the balance of the Complementary Capital that said AFP still owes.

TITLE V (1) (4)
PROCEDURES FOR HANDLING UNDECLARED AND UNPAID CONTRIBUTIONS

1. The balance that makes up the account of undeclared and unpaid contributions in AFP Profuturo,
   will be transferred to the AFPs, along with an electronic file that will contain the detail of following information:
   Mandatory Contribution
   Mandatory Contribution affiliate
   Voluntary Contribution affiliate
   Commissions
   Affiliate Registry (NUP, names, surnames)
   Employer Registry (NIT, trade name)
   Affiliate_employer Relationship
2. The use of the following sub-accounts has been established, for the registration of the undeclared
   and unpaid contributions to said fund. (4)

SSP
INSTRUCTIVO No. SAP 06/2006
PROCEDURAL INSTRUCTIONS FOR HANDLING THE TRANSFER OF THE REMAINING BALANCE OF THE AFP PROFUTURO PENSION FUND. Approval: 13/10/2006 Validity: 13/10/2006
714.03 Presumed Arrears of the AFP Profuturo Pension Fund (4)
3. Each time an employer presents themselves to settle their pension debt, the AFP is under the
obligation to review this database, in order to verify and inform the employer if they have or not, developments for undeclared and unpaid contributions for their corresponding payment, or in its default for the respective presentation of probative documents of solvency for their discharge.
4. The non-compliance with the obligation to declare and pay will be sanctioned according to what is
provided in articles 159 and 161 of the Law of the Pension Savings System.
5. For the issuance of solvencies by the AFPs, they must, prior to their issuance,
consult as an insurmountable condition the database of the Declared and Unpaid Contributions, and of the Undeclared and Unpaid (presumed arrears), delivered in due course by AFP Profuturo, relative to their ex-members; in case the employer registered debts with said AFP, solvencies must not be issued to them until they have resolved their situation or prove that the presumption of arrears lacked material basis, resorting for this to the presentation of probative documents for the respective discharge. (2) TITLE VI GENERAL CONSIDERATIONS Any aspect not contemplated in this Instruction will be resolved by the Superintendence. This Instruction will enter into force from the date of approval. PENSION SUPERINTENDENCE, in the city of San Salvador, on the thirteenth day of the month of October of two thousand six. Víctor Antonio Ramírez Najarro Pension Superintendents FSR/LECH/EEI* MODIFICATIONS:
(1) Reform 01/2007 (01) of May 21, 2007.
(2) Reform 02/2007 (02) of July 30, 2007.
(3) Reform 03-07 (03) of October 04, 2007.
(4) Reform 01/2009 (04) of October 23, 2009.