Technical Norms for the Return of the Balance of the Individual Pension Savings Account to Foreigners

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Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 1 of 8 CNBCR-11/2022 NSP-47 TECHNICAL NORMS FOR THE RETURN OF THE BALANCE OF THE INDIVIDUAL PENSION SAVINGS ACCOUNT TO FOREIGNERS Approval: 30/12/2022 Validity: 30/12/2022 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 article 8 of the Comprehensive Law of the Pension System establishes that affiliation will be mandatory when a person enters into a subordinate labor relationship. III. That article 127 of the Comprehensive Law of the Pension System establishes that, in the case of foreigners, regardless of their age, at their request, the balance of their individual account will be returned to them or transferred to the capitalization regime of their country of residence, in which their pension will be generated, if there is reciprocity in the matter. Likewise, it establishes that the request for return will proceed only once and that, if the return is made and the foreigner reincorporates into the System, they must wait to meet the requirements to enjoy the respective benefit. IV. That article 129 of the Comprehensive Law of the Pension System establishes that affiliates who access the benefit of balance return as established in said Law, will have the right to receive the return of their contributions to the Solidarity Guarantee Account. 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 on Supervision and Regulation of the Financial System, AGREES to issue the following:

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 2 of 8 CNBCR-11/2022 NSP-47 TECHNICAL NORMS FOR THE RETURN OF THE BALANCE OF THE INDIVIDUAL PENSION SAVINGS ACCOUNT TO FOREIGNERS Approval: 30/12/2022 Validity: 30/12/2022 TECHNICAL NORMS FOR THE RETURN OF THE BALANCE OF THE INDIVIDUAL PENSION SAVINGS ACCOUNT TO FOREIGNERS

CHAPTER I OBJECT, SUBJECTS AND TERMS

Object Art. 1.- These Norms have as their object to regulate the procedure that Pension Fund Administrators must follow for the return of the balance of the Individual Pension Savings Account to Foreigners, in accordance with what is established in 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) Foreign Affiliate: Any person who does not enjoy Salvadoran nationality and who maintains a relationship with a Pension Fund Administrator through a subscription of an affiliation contract; b) AFP: Pension Fund Administrator; c) Central Bank: Central Reserve Bank of El Salvador; d) CIAP: Individual Pension Savings Account; it is the sum of the worker's mandatory contributions and the proportion corresponding to the employer's contribution and the returns that are credited. Additionally, the Transfer Certificate and the accumulated balance in the Social Housing Fund will be part of the Individual Pension Savings Account, when applicable; e) CGS: Solidarity Guarantee Account; f) CT: Transfer Certificate; g) Days: When used for a term, it shall be understood that it refers to calendar days; h) Retirement Age: Completed age 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; i) FSV: Social Housing Fund; j) SP Law: Comprehensive Law of the Pension System; k) System: Pension System; l) SPP: Public Pension System; m) Superintendence: Superintendence of the Financial System; and

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 3 of 8 CNBCR-11/2022 NSP-47 TECHNICAL NORMS FOR THE RETURN OF THE BALANCE OF THE INDIVIDUAL PENSION SAVINGS ACCOUNT TO FOREIGNERS Approval: 30/12/2022 Validity: 30/12/2022 n) Identity Document: It may be the Unique Identity Document, Minor's Card, Passport, or Resident Card, as applicable.

CHAPTER II PROCEDURE FOR RETURN OF BALANCE OF THE INDIVIDUAL PENSION SAVINGS ACCOUNT FOR FOREIGN AFFILIATES TO THE PENSION SYSTEM

Return of balances to foreign affiliates to the Pension System Art. 4.- Foreign affiliates, regardless of their age, who request the return of the balance of their CIAP in accordance with what is established in the first paragraph of article 127 of the SP Law, may access the return of the balance or transfer it to the capitalization regime of their country of residence, in which they will generate their pension, if there is reciprocity in the matter, in accordance with what is established in these Norms. The request for the return of the balance to foreigners will proceed only once. If the return is made and the foreigner reincorporates into the System, they must wait to meet the retirement age to enjoy the benefit.

Of the request for return of balance of foreign affiliates to the Pension System Art. 5.- The foreign affiliate who requests the return of the balance of their CIAP must present to the corresponding AFP a request that must contain as a minimum the following information: a) Logo and full name of the AFP; b) Name of the request or form that is being processed; c) Number of the request or form, as applicable; d) Data of the foreign affiliate: i. Name of the foreign affiliate; ii. Sex of the foreign affiliate; iii. Marital status; iv. Nationality; v. Valid identification document (passport or resident card) indicating the document number, place and date of issuance; vi. Residence address; and vii. Email. e) Situation of the foreign affiliate: Labor relationship indicating if they are a dependent or independent contributor, or unemployed; f) Data of the financial entity where the foreign affiliate wishes to receive the deposit of the benefit; g) Place and date of presentation of the request;

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 4 of 8 CNBCR-11/2022 NSP-47 TECHNICAL NORMS FOR THE RETURN OF THE BALANCE OF THE INDIVIDUAL PENSION SAVINGS ACCOUNT TO FOREIGNERS Approval: 30/12/2022 Validity: 30/12/2022 h) Signature of the applicant or representative in physical requests. 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; and i) Stamp and signature of the employee authorized by the AFP to receive the request.

Annexes of the request Art. 6.- The request must be accompanied by a copy of the valid passport or resident card as of the date. For the process of receiving requests, the AFP will make available to the foreign affiliate the electronic means it deems convenient; however, said request will be formalized with the signature of the foreign affiliate. In case of appearing through a representative, the latter must present a valid identification document and a power of attorney with a special clause in which the authority to process the request is stated.

Of the review of the request Art. 7.- Once the request is received in firm in accordance with what is established in articles 5 and 6 of these Norms, the AFP will proceed to verify compliance with the requirements established in the SP Law to access the benefit of balance return and in case the foreign affiliate does not meet any of the requirements, the AFP will reject the request, having to explain to the foreign affiliate the cause of the rejection in writing within the maximum term of five business days following the date on which it was rejected. The AFP must have the original and a copy of the request and will deliver a copy to the foreign affiliate. In cases where the request is presented by electronic means, the AFP must provide an electronic receipt of the process performed. When the request is presented by physical means, it must not contain erasures, strikethroughs, or any other alteration of the same. Art. 8.- In case of complying with the requirements established in the SP Law and in these Norms, the AFP must issue a resolution of balance return and attach the updated individual account statement, which must have the manifestation of acceptance by the affiliate through the physical or electronic means that the AFP enables for these purposes. CHAPTER III PROCEDURE FOR CALCULATION AND PAYMENT OF THE RETURN OF BALANCE TO FOREIGN AFFILIATES TO THE PENSION SYSTEM

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 5 of 8 CNBCR-11/2022 NSP-47 TECHNICAL NORMS FOR THE RETURN OF THE BALANCE OF THE INDIVIDUAL PENSION SAVINGS ACCOUNT TO FOREIGNERS Approval: 30/12/2022 Validity: 30/12/2022 Determination of the return of balance to a foreign affiliate to the Pension System Art. 9.- Once the request is received and it is verified that the foreign affiliate meets the requirements to access a balance return, the AFP will determine the amount to be returned, multiplying the total accumulated quotas as of the cutoff date by the current quota value as of the date of the return of the CIAP. Foreign affiliates who, at the time of requesting the return of the balance, had made contributions in the SPP and if they had the right to a CT, will request the issuance and payment of the same. For this, the AFP must provide adequate advice so that the foreign affiliate initiates the corresponding procedures for the review of the Labor History in the SPP. At the moment the foreign affiliate accepts the referred Labor History, according to the processes established for such purposes, 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 accumulated funds by the foreign affiliate in the FSV, for cases where applicable. For the calculation of the amount of the CIAP to be returned, the CT, contributions to the FSV, and contributions to the CGS must be incorporated in the cases that correspond. Likewise, the AFP must issue a resolution of balance return attaching the updated statement of the CIAP, which must have the manifestation of acceptance by the foreign affiliate through the physical or electronic means that the AFP enables for these purposes.

If at the date of disbursement of the CIAP there are arrears, pension arrears, or both, these will be returned to the foreign affiliate when they are recovered by the AFP. Calculation of contributions made to the Solidarity Guarantee Account Art. 10.- Foreign affiliates who request the return of the balance will have the right to receive the return of their contributions to the CGS when applicable. To perform the calculation of the return of contributions to the CGS, the AFP must follow the process established in the Old Age in the System of NSP-43 NSP-44), approved by the Central Bank through its Committee of Norms. The balance to be taken into account will be that of the last day of the month prior to when the request was presented.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 6 of 8 CNBCR-11/2022 NSP-47 TECHNICAL NORMS FOR THE RETURN OF THE BALANCE OF THE INDIVIDUAL PENSION SAVINGS ACCOUNT TO FOREIGNERS Approval: 30/12/2022 Validity: 30/12/2022 Payment of the return of balance to a foreign affiliate to the Pension System Art. 11.- The return of the balance may be canceled by account credit or check in the name of the foreign affiliate, through a single disbursement. This disbursement must be made no later than thirty days after the return of balance request is presented. In cases where the foreign affiliate had contributed to the SPP and consequently the return of the balance contemplates other components by virtue of said contributions, the disbursement for the cases of the first paragraph of article 127 of the SP Law, will be made no later than 90 days after the return of balance request is presented. If the foreign affiliate requests that the return of their balance be deposited in a foreign financial entity, the charges derived from the transfer will be at the expense of the applicant. Art. 12.- In case of credited contributions in favor of the affiliate, with a date equal to or later than the date of the request and the payment of the benefit has not been made, they must be subject to return to the affiliate with their corresponding profitability. The amount of contributions corresponding to contributions to the CGS will be in accordance with what is established in the Technical Norms for the Granting of Benefits (NSP-43) issued by the Central Bank through its Committee of Norms. CHAPTER IV OTHER PROVISIONS AND VALIDITY

Art. 13.- The foreign affiliate to whom the return of the balance has been made will be identified in the views of the AFPs and the Superintendence with the code DVX, ending their affiliation contract and the rights it generated. In cases where the payment includes the return of the CT in three annual payments, in accordance with article 147 of the SP Law, the foreign affiliate will be identified with the code DVX from the moment of the first disbursement, and the CIAP will remain closed until the last disbursement. In case there are contributions in favor of the foreign affiliate after the affiliation contract has been terminated, the AFP must get in touch for their return at nominal value. Art. 14.- When a foreign affiliate has accessed the return of the balance of their CIAP, as provided in article 127 of the SP Law, they may affiliate again

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 7 of 8 CNBCR-11/2022 NSP-47 TECHNICAL NORMS FOR THE RETURN OF THE BALANCE OF THE INDIVIDUAL PENSION SAVINGS ACCOUNT TO FOREIGNERS Approval: 30/12/2022 Validity: 30/12/2022 to an AFP, either because they are under a subordinate labor relationship or as an independent worker. The Pension Agent must fill out the form, in accordance with what is established in the corresponding regulations.

When it concerns a foreigner under subordinate labor, the Pension Agent must consign the employer's data in the corresponding form; otherwise, it will be treated as an independent worker. The Pension Agent must include in the corresponding form a note specifying that the request belongs to a foreigner to whom the balance of their CIAP was returned, as stated in article 127 of the SP Law.

Information Request Art. 15.- The AFP must send to the Superintendence, on the same day that the return is made, the information indicated in Transfer of (NSP-64), for the corresponding update. Art. 16.- The AFP will be responsible for keeping an updated record to control the returns referred to in these Norms. Sanctions Art. 17.- 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. Transitory Art. 18.- The AFPs will have a term of 90 days to make the corresponding adjustments related to the substitution of the Unique Pension Number by the Identity Document Number in the Systems, forms or others in which they apply said change. Derogation Art. 19.- These norms derogate the (NSP-10) approved by the Central Bank through its Committee of Norms, in Session CNBCR-08/2018, of date August 31, 2018. Unforeseen Aspects Art. 20.- The unforeseen aspects in regulatory matters in these Norms will be resolved by the Central Bank through its Committee of Norms.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 8 of 8 CNBCR-11/2022 NSP-47 TECHNICAL NORMS FOR THE RETURN OF THE BALANCE OF THE INDIVIDUAL PENSION SAVINGS ACCOUNT TO FOREIGNERS Approval: 30/12/2022 Validity: 30/12/2022

Validity Art. 21.- These Norms will enter into force from the thirtieth of December of two thousand twenty-two.