Technical Norms for the Refund of Balances to Non-Pensioned Salvadorans Residing Abroad with Regular Permanent Migratory Status — SSF — SV

THE COMMITTEE OF NORMS OF THE CENTRAL RESERVE BANK OF EL SALVADOR, CONSIDERING:
I. That by Legislative Decree No. 614 dated 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 issued.
II. That Article 127 of the Comprehensive Law of the Pension System establishes that non-pensioned Salvadorans residing in a foreign country, regardless of their age, may request the refund of their balance in the individual savings account for pensions; provided that they demonstrate that they have a regular permanent migratory status abroad.
III. That Article 129 of the Comprehensive Law of the Pension System establishes that affiliates who access the benefit of balance refund as established in this Law, shall have the right to receive the refund of their contributions to the Solidarity Guarantee Account.
IV. 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 Technical Norms necessary to allow the development of what is established in Chapter VII of the aforementioned Law.
V. That Article 159 of the Comprehensive Law of the Pension System establishes that the Central Reserve Bank of El Salvador will issue the Technical Norms necessary to allow the development of what is established in the aforementioned Law.
VI. That for the purpose of having greater legal and technical certainty regarding the process for the refund of balances to non-pensioned Salvadorans residing in a foreign country and who have a regular permanent migratory status abroad, it is pertinent that Technical Norms be issued to regulate the granting of the benefit established in the Comprehensive Law of the Pension System.

THEREFORE, by virtue of the regulatory powers conferred by Article 99 of the Law on Supervision and Regulation of the Financial System, AGREES to issue the following:

TECHNICAL NORMS FOR THE REFUND OF BALANCES TO NON-PENSIONED SALVADORANS RESIDING ABROAD AND WITH REGULAR PERMANENT MIGRATORY STATUS

CHAPTER I
OBJECTIVE, SUBJECTS, AND TERMS

Objective
Art. 1.- These Norms have as their objective to regulate the procedure for the refund of the balance of the Individual Savings Account for Pensions, to non-pensioned Salvadoran affiliates residing abroad and with regular permanent migratory status.

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

Terms
Art. 3.- For the purposes of these Norms, the terms indicated below have the following meaning:
a) Salvadoran affiliate residing abroad: Any Salvadoran person who maintains a relationship with a Pension Fund Administrator through the signing of an affiliation contract with the Pension System, who resides in a foreign country and who possesses a regular permanent migratory status; b) AFP: Pension Fund Administrator; c) Central Bank: Central Reserve Bank of El Salvador; d) 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, when applicable, shall form part of the Individual Savings Account for Pensions; e) CGS: Solidarity Guarantee Account; f) CT: Transfer Certificate; g) DUI: Unique Identity Document; h) Retirement Age: The completed age that enables an affiliate to opt for a old-age benefit, according to what is established in Article 96 of the Comprehensive Law of the Pension System; i) Regular Permanent Migratory Status: The unconditional residence assigned to a person by the migratory authority upon entry to the receiving country, which for the purposes of these Norms may be a permanent residence or Citizenship in the foreign country where they reside; j) FSV: Social Housing Fund;

Alameda Juan Pablo II, between 15th and 17th North Avenue, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv
CNBCR-11/2022
NSP-73
TECHNICAL NORMS FOR THE REFUND OF BALANCES TO
NON-PENSIONED SALVADORANS RESIDING ABROAD
AND WITH REGULAR PERMANENT MIGRATORY STATUS
Approval: 12/30/2022
Validity: 12/30/2022 k) SP Law: Comprehensive Law of the Pension System; l) System: Pension System; m) SPP: Public Pension System; n) Superintendence: Superintendence of the Financial System; and o) UAIHL: Comprehensive Unit for Attention to Work History.

CHAPTER II
PROCEDURE FOR REFUND OF THE BALANCE OF THE INDIVIDUAL SAVINGS ACCOUNT FOR PENSIONS TO SALVADORAN AFFILIATES RESIDING ABROAD

Refund of balance to Salvadoran affiliates residing abroad Art. 4.- Non-pensioned Salvadoran affiliates residing abroad, regardless of their age, may request the refund of their CIAP balance.
The request for refund of balance to Salvadorans residing abroad may be made only once. If, after the refund is made, the affiliate reincorporates into the System, they must wait to reach the retirement age to enjoy the corresponding old-age benefit. Salvadoran affiliates residing abroad who meet the age and contribution time requirements established in the SP Law to opt for any type of old-age benefit, but who have not applied for any of them, may opt for the refund of the CIAP balance as established in these Norms.

Regarding the verification of residency and migratory status Art. 5.- The Salvadoran affiliate residing abroad, to initiate the procedure for the refund of their CIAP balance, must certify the documentation that proves their regular permanent migratory status and their residence in a foreign country, which must have been issued by the corresponding authorities according to the legislation of the country of residence. Such certification may be carried out as follows:
a) At the Diplomatic and/or Consular Representation of El Salvador in the country where they reside, for which these will have a form that the affiliate must complete. In these cases, the Diplomatic and/or Consular Representations of El Salvador will send to the AFPs, via electronic means or any other means they enable for such purposes, copies of the form and the certified documentation; b) Through a Notary legally authorized for such effects in their country of residence, and subsequently the process of legalization and translation of documents issued abroad must be followed, for their effects in El Salvador if necessary, or they may be certified by a Salvadoran Notary abroad exercising this function in accordance with Article 3 of the Notary Law; c) In cases where the Salvadoran affiliate residing abroad is temporarily in El Salvador and wishes to process the balance refund benefit, the AFP may proceed with said procedure provided that the affiliate completes the respective application of the process, and presents the corresponding certified documents. The certification may have been carried out by the affiliate at a Diplomatic and/or Consular Representation of El Salvador or through a Notary enabled for such effects in the country where they reside prior to their trip to El Salvador, or carried out during their temporary visit by a Notary authorized to exercise this function in El Salvador.

Art. 6.- The AFP must establish procedures aimed at evaluating and determining if the documents presented by the affiliate prove their residency and regular and permanent migratory status abroad, as well as verifying if the affiliate has recent contributions in the CIAP at the date of presentation of the refund request, in order to determine the reason and validity of said contributions, with the purpose of validating that the affiliates actually reside abroad.

Regarding the refund request
Art. 7.- The Salvadoran affiliate residing abroad who requests the refund of their CIAP balance must complete the respective application issued for such effects by the AFPs, which must be available to affiliates in their offices or via electronic means they enable. This application must contain at minimum the following information:
a) Logo and full name of the AFP; b) Name of the application or form in question; c) Number of the application or form, as applicable; d) Affiliate data:
i. Name;
ii. Sex;
iii. Marital status;
iv. Nationality;
v. Valid identification document (DUI, passport, or any other that proves Salvadoran nationality) indicating the document number, place and date of issuance;
vi. Residence address; and
vii. Email.
e) Data of the banking institution where the affiliate wishes to receive the payment of the benefit; (1) f) Place and date of presentation of the application; and g) Signature of the applicant or representative in physical applications. In cases where the procedure is carried out through electronic channels, the authentication of the affiliate will be necessary, according to the manner established by the AFP.

Annexes to the application
Art. 8.- The application must be accompanied by the certification of the documents that prove the migratory status and residency of the affiliate abroad, as well as a copy of the valid document proving their Salvadoran nationality. In cases where the procedure is carried out through a representative, they must present a valid identity document and the power of attorney with a special clause to process the application.

Regarding the review of the application
Art. 9.- Once the refund application is received in firm according to what is established in Articles 7 and 8 of these Norms, the AFP will proceed to verify compliance with the requirements established in the SP Law to access the balance refund benefit. If the AFP identifies any omission of information or documentation, or error in the issuance of the refund application, it must notify the affiliate within a maximum period of two business days following its identification. The affiliate, to continue with the procedure, must remedy the observation within a maximum period of fifteen business days following its notification. Once the complete documentation is presented in due form, the AFP will proceed with the procedures for the refund of the balance, within the period established in Article 15 of these Norms. If the Salvadoran affiliate residing abroad does not remedy the observation within the period indicated in the previous clause, having been made aware of it, or fails to meet any of the requirements to access the balance refund, the AFP will proceed to reject the application, notifying the affiliate of the cause of the rejection within a maximum period of five business days following the date on which it was rejected. In case the application is presented by physical means, it must not contain erasures, strikethroughs, or any other alteration thereof. The AFP must keep the original and a copy of the application, and will deliver a copy to the affiliate. In cases where the application is presented by electronic means, the AFP must provide an electronic receipt of the process carried out.

Art. 10.- In case of complying with the requirements established in the SP Law and in these Norms, the AFP must issue a resolution for the refund of balance for each of the disbursements to be made and attach the updated individual account statement, which must contain the manifestation of acceptance by the affiliate through the physical or electronic means the AFP enables for these effects.

CHAPTER III
PROCEDURE FOR CALCULATION AND PAYMENT OF THE REFUND OF BALANCE TO SALVADORAN AFFILIATES RESIDING ABROAD

Determination of the refund of balance
Art. 11.- Once the application is received and it is verified that the Salvadoran affiliate residing abroad meets the requirements to access a balance refund, the AFP will determine the amount to be refunded by multiplying the total accumulated quotas as of the date on which the refund calculation is being made, by the current quota value as of the date of the CIAP refund.

Art. 12.- Salvadoran affiliates residing abroad who, at the time of requesting the balance refund, had made contributions in the SPP, and had the right to a CT, will request its issuance and payment. These procedures will be carried out through the AFP, who will provide adequate advice to the affiliate to schedule an appointment at the UAIHL for the construction of the Work History, for which it will place at their disposal in their offices or via the corresponding electronic means, the application form for programming the referred appointment. The Work History must be managed by the affiliate at the UAIHL either in person or via the electronic means it enables for this effect, for its corresponding issuance, review, and acceptance. The UAIHL must finalize procedures related to the generation of the Work History report within a maximum period of 15 business days after receiving the respective application.

Art. 13.- Once the affiliate accepts the referred Work History, the AFP must manage the issuance and payment of the CT in accordance with Articles 147 and 148 of the SP Law, in addition to requesting the transfer of funds accumulated by the Salvadoran affiliate residing abroad in the FSV, when applicable.

Calculation of contributions made to the Solidarity Guarantee Account Art. 14.- Salvadoran affiliates residing abroad who access a balance refund will have the right to receive the refund of their contributions to the CGS, when applicable. For the calculation of the refund of contributions to the CGS, the AFP must follow the process established in the [Norms -43, -44], approved by the Central Bank through its Committee of Norms.

Payment of the refund of balance
Art. 15.- The refund of balance may be cancelled by account credit or check made out to the Salvadoran affiliate residing abroad, no later than thirty business days after the presentation of the refund application and complete documentation, as established in the second clause of Article 127 of the SP Law. Refund that may be made as follows:
a) Through a single disbursement, corresponding to the CIAP and contributions to the CGS, in cases that apply, when the Salvadoran affiliate residing abroad had contributed only in the System; or b) Through two or more disbursements, in cases where the Salvadoran affiliate residing abroad had contributed in the SPP and is entitled, by virtue of such contributions, to other components, such as the CT and contributions made in the FSV, when applicable. In these cases, the following will be proceeded:
i. A first disbursement in which the components detailed in clause a) of this article will be included, which may be made while the affiliate processes the issuance of their Work History in the SPP; and
ii. A second or more disbursements in which the components detailed in clause b) of this article will be included, either in a single payment or through annual payments, as established in Article 147 of the SP Law.
However, if the affiliate requests that a single disbursement be made, they must inform the AFP, who will record this in the corresponding resolution. The foregoing does not apply in the case where the CT must be paid in annuities for the disbursements corresponding to the second and third annuity, in accordance with what is provided in Article 147 of the SP Law. When the affiliate requests that the deposit be made in an account of a foreign financial entity in the country where they reside, the expenses corresponding to said transfer will be at their expense, and the AFP may deduct said expenses from the total amount to be refunded.

CHAPTER IV
OTHER PROVISIONS AND VALIDITY

Art. 16.- The Salvadoran affiliate residing abroad who opts to request the refund of balance will be identified in the views of the AFPs and the Superintendence with the code DVN, ending their affiliation contract and the rights it generated. In cases where the payment includes the refund of the CT in three annuities, in accordance with Article 147 of the SP Law, the affiliate will be identified with the code DVN from the moment of the first disbursement, and the CIAP will remain closed until the disbursement of the last annuity.

Code of operations
Art. 17.- The refunds of balances to Salvadorans residing abroad will be identified in the Individual Savings Account for Pensions Statements with the movement code described in Annex No. 1 of these Norms.

Information Requirement
Art. 18.- The AFP must send to the Superintendence, on the same day the refund is made, the information indicated in the [Norms -64], for the corresponding update.

Art. 19.- The AFP will be responsible for maintaining an updated record to control the refunds of balance referred to in these Norms.

Sanctions
Art. 20.- Non-compliance with the provisions contained in these Norms will be sanctioned in accordance with what is established in the Law on Supervision and Regulation of the Financial System.

Derogation
Art. 21.- [Norms -39] for the Refund of Balance to Non-Pensioned Salvadorans Residing Abroad and with Regular Migratory Status, approved by the Central Bank through its Committee of Norms, in Session CNBCR-17/2021 dated December 20, 2021, are derogated.

Unforeseen Aspects
Art. 22.- The unforeseen aspects in regulatory matters in these Norms will be resolved by the Central Bank through its Committee of Norms.

Validity
Art. 23.- These Norms will enter into force as of the thirtieth of December of two thousand twenty-two.

MODIFICATIONS:
(1) Modifications in Article 7, approved by the Central Bank through its Committee of Norms, in Session No. CN-10/2023, of November 28, two thousand twenty-three, with validity as of December 13, two thousand twenty-three.

Annex No. 1

MOVEMENT CODE IN CIAPS TO IDENTIFY REFUNDS OF BALANCES TO SALVADORANS RESIDING ABROAD

Type Code
Adjustment Indicator
Reversal Indicator
Concept
Type Code
Adjustment Indicator
Reversal Indicator
Concept
A 137 Adjustment of Reversal of Refund of balance to Salvadorans residing abroad.
C 137 Adjustment of Refund of balance to Salvadorans residing abroad.

Lineage: No known changes