Technical Norms for Accessing the Benefit of Balance Refund for Serious Illness or Terminal Serious Illness in the Pension System

CNBCR-11/2022 NSP-46
TECHNICAL NORMS FOR ACCESSING THE BENEFIT OF BALANCE REFUND FOR SERIOUS ILLNESS OR TERMINAL SERIOUS ILLNESS IN THE PENSION SYSTEM Approval: 12/30/2022 Validity: 12/30/2022

Juan Pablo II Alameda, between 15 and 17 North Ave, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

THE COMMITTEE OF NORMS OF THE CENTRAL RESERVE BANK OF EL SALVADOR,

CONSIDERING:

I. That by Legislative Decree No. 614, of December 20, 2022, published in Official Diary No. 241, Volume No. 437 of the 21st of the same month and year, the Comprehensive Law of the Pension System was approved.
II. That the first paragraph of Article 128 of the Comprehensive Law of the Pension System establishes that the affiliate, regardless of age and compliance with requirements to access a disability pension in a second report or old age, who is diagnosed by the Invalidity Assessment Commission with a serious illness that significantly puts their life at risk, may opt to request the refund of the balance of their Individual Savings Account for Pensions.
III. That the second paragraph of Article 128 of the Comprehensive Law of the Pension System establishes that in the case where the affiliate suffers from a terminal serious illness and this has been diagnosed by a private doctor or public institution doctor, the Invalidity Assessment Commission must validate the medical report within 15 business days.
IV. That Article 129 of the Comprehensive Law of the Pension System establishes that affiliates who access the balance refund benefit as established in said Law, will have the right to receive the refund of their contributions to the Solidarity Guarantee Account. Such refund will be calculated as the sum of the values of each contribution, recognizing an interest rate equivalent to the variation of the Consumer Price Index from the date of each contribution until its refund.
V. That Article 131 of the Comprehensive Law of the Pension System establishes that the Central Reserve Bank of El Salvador, through its Committee of Norms, will issue the necessary Technical Norms that allow the development of what is established in Chapter VII of the referred Law.
VI. That Article 159 of the Comprehensive Law of the Pension System establishes that the Central Reserve Bank of El Salvador will issue the necessary Technical Norms that allow the development of what is established in the referred Law.

THEREFORE,

by virtue of the regulatory powers conferred by Article 99 of the Law of Supervision and Regulation of the Financial System,

CNBCR-11/2022 NSP-46
TECHNICAL NORMS FOR ACCESSING THE BENEFIT OF BALANCE REFUND FOR SERIOUS ILLNESS OR TERMINAL SERIOUS ILLNESS IN THE PENSION SYSTEM Approval: 12/30/2022 Validity: 12/30/2022

Juan Pablo II Alameda, between 15 and 17 North Ave, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

AGREES to issue the following:

TECHNICAL NORMS FOR ACCESSING THE BENEFIT OF BALANCE REFUND FOR SERIOUS ILLNESS OR TERMINAL SERIOUS ILLNESS IN THE PENSION SYSTEM

CHAPTER I
OBJECT, SUBJECTS AND TERMS

Object
Art. 1.- The object of these Norms is to establish the procedure that Pension Fund Administrators must carry out, regarding the benefit of balance refund for serious illness or terminal serious illness, stipulated in Article 128 of the Comprehensive Law of the Pension System.

Subjects
Art. 2.- The subjects obliged to comply with the provisions established in these Norms are the Pension Fund Administrators.

Terms
Art. 3.- For the purposes of these Norms, the terms indicated below have the following meaning:
a) Affiliate: Any person who maintains a relationship with a Pension Fund Administrator, through the signing of an affiliation contract; b) AFP: Pension Fund Administrator; c) Central Bank: Central Reserve Bank of El Salvador; d) CGS: Solidarity Guarantee Account; e) CIAP: Individual Savings Account for Pensions; it is the sum of the worker's mandatory contributions and the proportion corresponding to the employer's contribution and the earnings credited. Additionally, the Transfer Certificate and the accumulated balance in the Social Housing Fund will form part of the Individual Savings Account for Pensions, when applicable; f) Invalidity Assessment Commission: Entity created by Article 104 of the Comprehensive Law of the Pension System that enjoys autonomy regarding the knowledge and qualification of applications submitted to its consideration, whose main function is to determine the origin of the illness or common or professional accident and qualify the degree of disability. Likewise, it rules on whether an affiliate suffers from serious illness or validates the medical report for terminal serious illness, to access the benefit of balance refund for serious illness or terminal serious illness as regulated in Article 128 of the Comprehensive Law of the Pension System; g) CT: Transfer Certificate or its equivalent value;

CNBCR-11/2022 NSP-46
TECHNICAL NORMS FOR ACCESSING THE BENEFIT OF BALANCE REFUND FOR SERIOUS ILLNESS OR TERMINAL SERIOUS ILLNESS IN THE PENSION SYSTEM Approval: 12/30/2022 Validity: 12/30/2022

Juan Pablo II Alameda, between 15 and 17 North Ave, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

h) Days: When used for a period, it shall be understood that it refers to calendar days; i) Executed Report: Report issued by the Invalidity Assessment Commission, regarding which fifteen business days have passed after notification to the parties, without a complaint being received against it, or if a complaint has been presented, it has been resolved by the Invalidity Assessment Commission; j) DUI: Unique Identity Document; k) Retirement Age: Age reached that enables an affiliate to opt for a benefit for old age, according to what is established in Article 96 of the Comprehensive Law of the Pension System; l) FSV: Social Housing Fund; m) INPEP: National Institute of Pensions for Public Employees; n) INPEP Number: Number granted by the National Institute of Pensions for Public Employees to its affiliates, prior to the entry into force of the Law Creating the Salvadoran Institute of Pensions. o) ISP: Salvadoran Institute of Pensions; p) ISSS: Salvadoran Social Security Institute; q) SP Law: Comprehensive Law of the Pension System; r) System: Pension System; s) SPP: Public Pension System; t) Superintendence: Superintendence of the Financial System; u) UAIHL: Comprehensive Unit for Labor History Attention; and v) Identity Document: It may be the Unique Identity Document, Minor's Card, Passport or Resident Card, as applicable.

CHAPTER II
REFUND OF BALANCE FOR SERIOUS ILLNESS OR TERMINAL SERIOUS ILLNESS

Request for balance refund for serious illness or terminal serious illness Art. 4.- The affiliate who is diagnosed by the Invalidity Assessment Commission with a serious illness that significantly puts their life at risk, may request the refund of the balance of their CIAP. Likewise, those affiliates who are diagnosed with a terminal serious illness by a private doctor or public institution doctor may access the benefit of refund of the CIAP balance. In the latter case, the AFP must manage with the Invalidity Assessment Commission the appointment for the preliminary interview with the treating doctor, which must be assigned by the Invalidity Assessment Commission within a period of three business days, with the AFP sending the digitized request and the report from the private doctor or public institution doctor via email and subsequently within a maximum period of three business days sending the original request and the original report from the private doctor or public institution doctor, to the administrative offices of the Invalidity Assessment Commission, adding the existing file and other medical records provided, if any, duly listed. The benefit of balance refund for serious illness or terminal serious illness will apply to affiliates who, regardless of age and compliance with requirements to access a disability pension in a second report or old age, have a balance in their CIAP. For those affiliates who request the benefit of balance refund for serious illness or terminal serious illness and are not pensioned for disability or in the process of granting said benefit, they must additionally request from the Invalidity Assessment Commission the evaluation so that it can qualify the corresponding degree of disability. In these cases, the Invalidity Assessment Commission will issue the first disability report and the report on the determination of serious illness or the validation of the medical report for terminal serious illness.

Art. 5.- The requests to initiate the procedure for the benefit of balance refund for serious illness or terminal serious illness must be available to affiliates in the offices of the AFPs or through the electronic means they make available to their affiliates.
Any affiliate wishing to access the benefit of balance refund for serious illness or terminal serious illness must initiate the procedure with the signing of the corresponding request.
In the event that the affiliate is unable to carry out this procedure personally, they may be represented by an attorney. In case of appearing through an attorney, they must present their identity document and a power of attorney with a special clause to process the balance refund before the AFP.

Art. 6.- For the purpose of requesting the benefit of balance refund for serious illness, the affiliate must present to the AFP in which they are affiliated the following requests:
a) Request for Determination of Serious Illness, which will be required for the issuance of the report by the Invalidity Assessment Commission and according to the procedure established for the Qualification of the Degree of Disability and Determination of Serious Illness to Rule on the Right to Disability Pension and Balance Refund for Serious Illness by the Invalidity Assessment Commission (NSP-45) issued by the Bank through its Committee of Norms; and b) Simultaneously with requesting the report on the determination of serious illness, the affiliate must present the request named Request for Balance Refund for Serious Illness or Terminal Serious Illness. The procedure for the request for balance refund for serious illness, as established in Article 128 of the SP Law, will proceed in the case where the Invalidity Assessment Commission rules on the affiliate with a serious illness that significantly puts their life at risk.

Art. 7.- In the case where the request is for the benefit of terminal serious illness, the affiliate must present to the AFP in which they are affiliated the following requests:
a) Request for Validation of Medical Report for Terminal Serious Illness, which will be required for the validation of the report to be carried out by the Invalidity Assessment Commission and according to the procedure established in the Technical Norms for the Qualification of the Degree of Disability and Determination of Serious Illness to Rule on the Right to Disability Pension and Balance Refund for Serious Illness (NSP-45) issued by the Central Bank through its Committee of Norms; and b) Simultaneously with requesting the validation of the report on the determination of terminal serious illness, the affiliate must present the request named Request for Balance Refund for Serious Illness or Terminal Serious Illness. The procedure for the request for balance refund for terminal serious illness, as established in Article 128 of the SP Law, will proceed in the case where the Invalidity Assessment Commission validates the medical report carried out by a private doctor or public institution doctor, in which it is established that the affiliate suffers from a terminal serious illness.

Content of the request for balance refund for serious illness or terminal serious illness Art. 8.- The request for balance refund for serious illness or terminal serious illness must contain at minimum the following information:
a) Logo and full name of the AFP; b) Name of the request or form; c) Number of the request or form, as applicable; d) Affiliate data:
i. Affiliate's name;
ii. Affiliate's sex;
iii. ISSS or INPEP affiliation number, or both, as applicable;
iv. Marital status;

CNBCR-11/2022 NSP-46
TECHNICAL NORMS FOR ACCESSING THE BENEFIT OF BALANCE REFUND FOR SERIOUS ILLNESS OR TERMINAL SERIOUS ILLNESS IN THE PENSION SYSTEM Approval: 12/30/2022 Validity: 12/30/2022

Juan Pablo II Alameda, between 15 and 17 North Ave, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

v. Nationality;
vi. Identification document used (DUI, passport, resident card) indicating the document number, place and date of issuance; and
vii. Full address.
e) Affiliate's situation:
i. Labor relationship (dependent or independent contributor, unemployed);
f) Place and date of submission of the request; g) Signature of the affiliate or the person authorized by the affiliate, to sign on their behalf the request for balance refund for serious illness or terminal serious illness; and h) Stamp and signature of the employee authorized by the AFP to receive the request. The AFP must have the original and a copy of the request and will deliver a copy to the affiliate. In case the request is presented by physical means, it must not contain erasures, strikethroughs or any other alteration.

Documents attached to the request
Art. 9.- The request must be accompanied by the following documents:
a) Copy of identity document (DUI for nationals and passport or resident card for foreigners); and affiliation document with ISSS or INPEP, or both, if they have them; b) Medical report prepared by a private doctor or public institution doctor for cases of request for balance refund for terminal serious illness; and c) Corresponding report or validation of report prepared by a private doctor or public institution doctor, issued by the Invalidity Assessment Commission, which must be presented once it is issued by the Invalidity Assessment Commission. The AFP, for the process of receiving requests, may make electronic means available to the affiliate, the request will be formalized with the signature of the affiliate.

Conditions applicable to the documents to be presented Art. 10.- The documents to be attached to the requests presented by affiliates must meet the following conditions:
a) Identity documents such as DUI, Passport or resident card must be valid on the date of the request; b) Both copies and originals of the requested documents must be presented, this in order to carry out the corresponding validation. In the case where the procedure is carried out by an attorney, notarially certified copies may be presented, which substitute the presentation of the original documents; and c) The copies of the documents presented must be legible and in good condition.

Regarding the review of the request
Art. 11.- The AFP will verify the content of the request and compliance with the requirements to opt for the benefit of balance refund for serious illness or terminal serious illness, established in Article 128 of the SP Law.
Received in accordance with what is established in Articles 8 and 9 of these Norms, the AFP will proceed to verify compliance with the requirements established in the SP Law to access the benefit of balance refund for serious illness and in case the affiliate does not meet any of the requirements, the AFP will reject the request, notifying and explaining to the affiliate the cause of the rejection within a maximum period of five business days following the date on which the rejection was resolved. In cases where balance refund requests are for terminal serious illness, the AFP must notify the rejection of the request within a maximum period of two business days following the date on which the rejection was resolved.

Labor History
Art. 12.- If the affiliate has contributions in the SPP, the AFP must provide them with adequate advice so that they can initiate the corresponding procedures for the review of the Contribution History with the SPP, assigning them an appointment at the ISP. This process will end with the signing of the Labor History Acceptance Act, a document that must be presented as an attachment to the request to initiate the procedure for the request for balance refund for serious illness or terminal serious illness. The affiliate must review the Labor History provided by the AFP, which proves and verifies the registration of contribution times. In case the affiliate does not agree with the information registered in their Labor History, they must request the review and the corresponding management to the AFP.

Procedure for transfers of funds to the CIAP
Art. 13.- If the affiliate meets the requirements to access the balance refund established in Article 128 of the SP Law and if they have contributed to the SPP, the AFP will manage the issuance and payment of the CT in accordance with Articles 147 and 148 of the SP Law, and the Technical Norms for the Transfer of Funds (NSP-44), approved by the Central Bank through its Committee of Norms. For the case of affiliates covered by Articles 149 of the SP Law, who have the right to receive CT and who opt for the balance refund for serious illness, the amounts equivalent to the CT will be received in accordance with what is established in Article 147 of the SP Law. In the case of the affiliates referred to in the previous paragraph who receive the CT in three annual installments, the components of the CIAP must be delivered when the first CT payment is made. In case of the affiliate's death, prior to the CT being fully disbursed, the pending annual payments will follow the rules of common law in matters of succession. The AFP must request the transfer of funds accumulated by the affiliate in the FSV, for cases where applicable, according to the respective regulations. Such funds will be credited to the affiliate's CIAP prior to calculating the balance refund.

Art. 14.- If the affiliate requests the refund of the balance due to suffering from terminal serious illness, as established in the second paragraph of Article 128 of the SP Law and if they have contributed to the SPP, the AFP will apply the process and deadlines established in the second paragraph of this article. The AFP will manage with the ISSS and the ISP, as applicable, the issuance and payment of the CTs. These institutions must transfer the corresponding information within a period of fifteen days and the balance must be refunded within a maximum period of thirty days. In case of the affiliate's death, prior to the CT being disbursed, the pending balance to be disbursed will follow the rules of common law in matters of succession. Within the maximum period of thirty days established in the previous paragraph, the AFP must request the transfer of funds accumulated by the affiliate in the FSV, for cases where applicable, according to the respective regulations, such funds will be credited to the affiliate's CIAP prior to carrying out the refund of the CIAP components.

Voluntary contribution to ISSS
Art. 15.- In the event that the affiliate is managing the benefit of balance refund for serious illness or terminal serious illness, the AFP must issue a certificate or similar document so that they can contribute voluntarily in the Regime of Benefits for Illness, Maternity and Professional Risks of the ISSS and enjoy the health benefits granted by said Institute.

CHAPTER III
PROCEDURE FOR CALCULATING THE BALANCE REFUND FOR SERIOUS ILLNESS OR TERMINAL SERIOUS ILLNESS AND RESOLUTION OF THE REQUEST

Components of the CIAP
Art. 16.- Once the request is received and the AFP has verified that the affiliate complies with what is established in Article 128 of the SP Law, specifically for the case of serious illness, the AFP must determine the amount of the CIAP with the components that will be used to determine the amount to be refunded, within a maximum period of five business days following the date of crediting the CT and FSV balance in the affiliate's CIAP. For the calculation of the CIAP amount, the CT and contributions made to the FSV must be incorporated when applicable, such components must be credited to the affiliate's CIAP. For the case of affiliates referred to in Article 147 of the SP Law, they will receive an amount equivalent to the CT, provided they comply with what is established in said article. For the case of affiliates who request the refund of the balance for terminal serious illness, the AFP must determine the amount of the CIAP to be refunded within a maximum period of...