Regulation for the Return of the Balance of the Individual Pension Savings Account and/or the Assignment to Ex-Contribution Payers of the Social Security Institute of the Armed Forces

DE No. 32/2001 DECREE No. 32/2001

REGULATION FOR THE RETURN OF THE BALANCE OF THE INDIVIDUAL PENSION SAVINGS ACCOUNT AND/OR THE ASSIGNMENT TO EX-CONTRIBUTION PAYERS OF THE SOCIAL SECURITY INSTITUTE OF THE ARMED FORCES

Approval: 02/04/2001
Validity: 15/05/2001

DECREE No. 32.

THE PRESIDENT OF THE REPUBLIC OF EL SALVADOR,

CONSIDERING:

I. That by Legislative Decree No. 927, dated December 20, 1996, published in Official Diary No. 243, Volume No. 333, of the 23rd of that same month and year, the Law of the Pension Savings System was issued;

II. That by Legislative Decree No. 192, dated November 9, 2000, published in Official Diary No. 21, Volume No. 350 of January 29, 2001, Article 10 of the Law of the Pension Savings System was reformed, allowing ex-contribution payers of the Social Security Institute of the Armed Forces who are affiliated with the Pension Savings System or the Public Pension System to rejoin the aforementioned Institute, an option they must take within a period not exceeding one year, counted from the validity of Decree No. 192;

III. That it is necessary to regulate the guidelines to be followed by the Pension Fund Administrating Institutions and by the Social Security Institutes that make up the Public Pension System, for the return of the balance of the Individual Pension Savings Account or the Assignment, respectively, to the ex-contribution payers of the Social Security Institute of the Armed Forces, who opt to rejoin said Institute.

THEREFORE,

In exercise of its constitutional powers,

DECREES the following:

REGULATION FOR THE RETURN OF THE BALANCE OF THE INDIVIDUAL PENSION SAVINGS ACCOUNT AND/OR THE ASSIGNMENT TO EX-CONTRIBUTION PAYERS OF THE SOCIAL SECURITY INSTITUTE OF THE ARMED FORCES

CHAPTER I
GENERAL PROVISIONS

Art. 1.- The object of this Regulation is to facilitate the application of the regulation contained in the Law of the Pension Savings System, regarding the return of the balance of the Individual Pension Savings Account and/or the assignment for the ex-contribution payers of the Social Security Institute of the Armed Forces who affiliated with the Pension Savings System or who are affiliated with the Public Pension System, and who opt to rejoin the Social Security Institute of the Armed Forces, in accordance with what is provided in Decree No. 192.

Art. 2.- In the text of this Regulation, the following designations will be used:

SAP: Pension Savings System.
SPP: Public Pension System.
Superintendencia: Superintendence of Pensions.
AFP: Pension Fund Administrating Institution.
IPSFA: Social Security Institute of the Armed Forces.
Ley SAP: Law of the Pension Savings System.
CIAP: Individual Pension Savings Account.
ISSS: Salvadoran Institute of Social Security, Invalidity, Old Age and Death regime.
INPEP: National Institute of Pensions for Public Employees.
Cut-off date: Entry into force of the Resolution issued by the IPSFA.

CHAPTER II
REQUIREMENTS FOR THE RETURN OF THE BALANCE

Art. 3.- The ex-contribution payer of the IPSFA affiliated with an AFP, the ISSS or the INPEP who rejoins the IPSFA pension regime, in the period established for such effects in Art. 10 of the SAP Law, must present to the respective AFP or the corresponding Social Security Institute the following documentation:

a) Resolution of the IPSFA, stating that the applicant affiliate has been reinstated in accordance with the Law of said Institute, specifying the date of entry into force thereof;

b) Copy of Personal Identity Card;

c) Unique Pension Number.

In case of not possessing a Unique Pension Number, proceedings will be in accordance with the current regulations.

The balance of the CIAP will not be returned if the affiliate does not meet any of the requirements established in this Article.

CHAPTER III
ON THE RETURN OF THE BALANCE OF THE CIAP OR THE ASSIGNMENT

Art. 4.- The balance of the CIAP, composed of mandatory and voluntary contributions, with their respective profitability, made by the worker and their employer from their incorporation into the SAP until the cut-off date, must be returned to the affiliate by check, in a single disbursement, no later than thirty days after the requirements established in the previous Article have been met.

Art. 5.- It is the responsibility of the AFP to make the corresponding calculations for the return of the CIAP balance of the affiliate, prior to compliance with the requirements established in Art. 3 of this Regulation. The procedure for the return of the CIAP balance will be defined by the respective Instruction.

Art. 6.- The assignment to which affiliates of the SPP who rejoin the IPSFA are entitled, must be processed by the interested party, before the ISSS or the INPEP, as appropriate, in accordance with what is established in the SAP Law and prior to compliance with the requirements contemplated therein.

Likewise, affiliates of the SAP who had contributed to the SPP and who opted to rejoin the IPSFA, must process the assignment to which they are entitled, before the corresponding Social Security Institute, prior to compliance with the requirements established in the SAP Law.

For the purposes of what is established in this Article, both the ISSS and the INPEP must maintain the Affiliate's History.

CHAPTER IV
ON THE SENDING OF INFORMATION

Art. 7.- The IPSFA must send to the Superintendence no later than fifteen days after the reinstatement is accepted, the list of ex-contribution payers who have been reinstated, specifying the validity date of said reinstatement. The aforementioned information must also be sent by the IPSFA to the ISSS, INPEP or the respective AFP, as appropriate, within the same deadline referred to in this Article.

It is the responsibility of the AFP, the ISSS or the INPEP to notify the employer that from the cut-off date onwards, they must no longer send them the contributions of the affiliates who opted to rejoin the IPSFA, specifying that the reason is that upon rejoining said Institute, the affiliation to the Social Security Institution of the SPP or the SAP, as appropriate, is rescinded. The notification must not exceed ten business days after receiving the information referred to in the previous paragraph.

The IPSFA, for its part, must notify the employer of the list of workers who have rejoined this Institute, specifying the date of entry into force thereof. Such notification must not exceed twenty days counted from the entry into force of the reinstatement to the IPSFA.

Art. 8.- The AFP must inform the Superintendence for the corresponding effects, and the ISSS or the INPEP, depending on the case, regarding the list of affiliates who opted to disaffiliate from the SAP, so that said Social Security Institutes carry out the registration of the corresponding obligation, which will serve to meet the responsibilities derived from the SAP Law.

Such information must be sent on the same day the disbursement is made.

The ISSS or the INPEP must inform the Superintendence, no later than 30 days after receiving the information referred to in Art. 3 of this Regulation, regarding the list of affiliates who opted to disaffiliate from the SPP.

CHAPTER V
RESPONSIBILITY FOR PENSION COVERAGE

Art. 9.- From the reinstatement to the IPSFA, the affiliation to the SAP or the SPP is rescinded, freeing the AFP or the respective Social Security Institute from responsibilities and obligations of coverage for pensions for invalidity or survivorship of the affiliate, maintaining the right to the Assignment in accordance with compliance with what is provided in the SAP Law.

Once the affiliation to the SAP or the SPP is rescinded, it will be the responsibility of the IPSFA to grant the benefits to which one is entitled, in accordance with what is provided in the IPSFA Law.

Art. 10.- The contributions received by the AFP, the ISSS or the INPEP, after the cut-off date, must be returned no later than fifteen business days after receipt, to the respective employer, so that they are sent to the IPSFA, in accordance with what is provided for such effects in its Law.

CHAPTER VI
CLOSURE OF THE CIAP

Art. 11.- The AFP must carry out the closure of the CIAP of the affiliate no later than one day after the corresponding balance return has been made, all in accordance with the Regulation of Collection of Contributions to the SAP, insofar as applicable.

CHAPTER VII
FINAL PROVISIONS

Art. 12.- The Superintendence will resolve any aspect not contemplated in this Regulation, in accordance with the SAP Law.

Art. 13.- This Decree will enter into force eight days after its publication in the Official Diary.

GIVEN IN THE PRESIDENTIAL HOUSE: San Salvador, on the second day of the month of April of the year two thousand one.

FRANCISCO GUILLERMO FLORES PEREZ,
President of the Republic.

JOSE LUIS TRIGUEROS,
Minister of Finance.

JORGE ISIDORO NIETO MENENDEZ,
Minister of Labor and Social Security.

Published in Official Diary No.84
Volume 351, of May 7, 2001.
This compilation is an exact copy of what is established in the Official Diary.