Technical Standards for Requesting the Issuance, Delivery and Review of the Work History in the Public Pension System

CNBCR-11/2022 NSP-74 TECHNICAL STANDARDS FOR REQUESTING THE ISSUANCE, DELIVERY AND REVIEW OF THE WORK HISTORY IN THE PUBLIC PENSION SYSTEM Approval: 12/30/2022 Validity: 12/30/2022

Alameda Juan Pablo II, between 15 and 17 Norte Ave, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 1 of 12

THE COMMITTEE OF NORMS OF THE CENTRAL RESERVE BANK OF EL SALVADOR, CONSIDERING: I. That Article 20, first paragraph, of the Comprehensive Pension System Law establishes that the Work History will serve as the basis for calculating the times necessary to access the benefits contemplated in said Law. II. That Article 20, second paragraph, of the Comprehensive Pension System Law establishes that Work History shall be understood as that information that details the historical work time of workers incorporated into the System, who have worked in the private, public, or both sectors, supported by contributions made and service times reported in the Pension Savings System and the Public Pension System. III. That Article 159 of the Comprehensive Pension System Law establishes that the Central Reserve Bank of El Salvador will issue the Technical Standards necessary to allow the development of what is established in the referred Law. IV. That it is necessary to establish deadlines for the process of reconstructing the Work History in the Public Pension System.

THEREFORE, in 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 STANDARDS FOR REQUESTING THE ISSUANCE, DELIVERY AND REVIEW OF THE WORK HISTORY IN THE PUBLIC PENSION SYSTEM

CHAPTER I OBJECTIVE, SUBJECTS AND TERMS

Objective Art. 1.- These Standards aim to establish the procedure for the request, issuance, delivery, and review, where applicable, of the Work History registered in the Salvadoran Institute of Social Security and/or the National Institute of Pensions for Public Employees, of affiliates to the Pension System and the Public Pension System.

Subjects Art. 2.- The subjects obliged to comply with these Standards are the Pension Institutes that belong to the Public Pension System.

Terms Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning: a) Affiliate: Person who contributed to any of the Pension Institutes that make up the Public Pension System; b) AFP: Pension Fund Administrator; c) Beneficiary: Survivor beneficiary; d) CT: Transfer Certificate or its equivalent value; e) Identity Document: It may be the Unique Identity Document, Minor's Card, Passport, or Resident Card, as applicable; f) HL: Work History of the Public Pension System; g) Pension Institution: Pension Fund Administrator, Salvadoran Institute of Social Security, or National Institute of Pensions for Public Employees; h) Pension Institute: Salvadoran Institute of Social Security or National Institute of Pensions for Public Employees; i) INPEP: National Institute of Pensions for Public Employees, prior to the entry into force of the Law Creating the Salvadoran Institute of Pensions; j) ISSS: Salvadoran Institute of Social Security; k) IVM: Disability, old age, and death; l) SP Law: Comprehensive Pension System Law; m) INPEP affiliation number: Number assigned 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; n) SP: Pension System; o) SPP: Public Pension System; p) Superintendence: Superintendence of the Financial System; and q) Comprehensive Attention Unit of the Work History, UAIHL: Office responsible for the review and issuance process of the work history of the SPP that certifies the time of service and salaries reported to the pension institutes.

CHAPTER II ON THE REQUEST, ISSUANCE AND DELIVERY OF THE SPP WORK HISTORY

On the SPP work history Art. 4.- The HL contains the historical work information of all workers who have contributed to the SPP, which is supported by the contributions made and the time of service in said System.

The HL report issued for the granting of benefits in the SPP and in the SP, will be generated from the information registered in the UAIHL Database, after having applied the mechanisms detailed in Chapter IV of these Standards.

On the request for issuance of the work history report Art. 5.- Affiliates to the SPP or their beneficiaries who request a pension in accordance with what is established in the SP Law, must previously request their HL report from the Pension Institute to which they are affiliated, in order to review the times and salaries contributed that will serve as the basis for the calculation of their benefits. Likewise, for this group of affiliates who wish to contribute voluntarily, they must request their HL report to review it and determine the period for which they must contribute to access a benefit. Affiliates to the SP who have the right to request their CT, must request from the AFP to which they are affiliated, the HL of the time they contributed in the ISSS Pension Regime and/or INPEP, to review the times and salaries reported, which will serve as the basis for the calculation of their CT. Affiliates or beneficiaries may, in addition to the means already established by the UAIHL, request the issuance of the HL through the technological means that it enables for such effects. The Pension Institutes must apply the "Expansion of Attention Channels in Pension Systems through Technological Means -68", issued by the Central Bank through its Committee of Norms, regarding authentication mechanisms and information security. The issuance of the HL may be requested to initiate a benefit request procedure contemplated in the SP Law or in an informative manner; in any case, the UAIHL must give priority to the issuance of the HL related to benefit requests. The process defined in these Standards regarding the request, delivery, and review of the HL may be carried out by an attorney-in-fact, who must duly accredit their status, and who is fully authorized to carry out said procedure.

Minimum content of the request for issuance of the work history report Art. 6.- The request for issuance of the HL report must contain as a minimum the following information: a) [Text missing in source, likely heading continuation] b) Sequential number of the request; c) The date of the request, with the d) Full name; e) [Text missing in source] f) Sex; g) Full name of both parents, where applicable; h) Affiliation number with ISSS or INPEP, as applicable; i) Identity Document (DUI, Passport, or Resident Card), as applicable; j) Address for notification; k) Email; l) Landline or cell phone number; m) Reason for the request, which may be: i. Old age benefit; ii. Disability pension; iii. Survivor pension; iv. Benefit for serious illness or grave terminal illness, return of balance to Salvadorans residing abroad or return of balance to foreigners; and v. Other. n) Information on work background, indicating if they contributed to ISSS, INPEP, or both; o) Signature of the affiliate or beneficiary in physical requests. In cases where the procedure is carried out through electronic channels, authentication of the affiliate or beneficiary will be necessary, according to the manner established by the UAIHL; and p) Name of the UAIHL person who receives the request, and date of receipt. Likewise, the detail of the work information may be incorporated, indicating the employer, start date, and end date of work, position, and payment method, as well as Annexes, which may be documents that prove the information of the times worked by the affiliate.

On the issuance process of the work history Art. 7.- The UAIHL must process each of the requests within the deadline indicated in Article 9 of these standards, for which the following process must be followed: a) The affiliate's information in the database of the System for the Administration of the Work History (SAHL) must be updated, to carry out an adequate recognition of the periods contributed by the affiliate; b) A preliminary HL report must be provided to the affiliate or beneficiary, either physical or electronic, according to the process selected when presenting the HL issuance request. This preliminary report must be prepared based on the information the UAIHL possesses in its records, the information the affiliate or beneficiary presents in the request, and any documentary proof that the affiliate or beneficiary presents as annexes; c) The affiliate or beneficiary must review the information detailed in the report and manifest their agreement or disagreement with it, either physically or through the electronic means facilitated by the UAIHL, to continue with the procedures before the corresponding Pension Institution or to initiate the HL review procedure; d) In cases where the affiliate or beneficiary identifies any inconsistency in the preliminary report, they must inform the UAIHL that they will present a review request, for which they must follow the procedure established in Chapter III of these standards; e) If the affiliate or beneficiary is in agreement with the information contained in the preliminary HL report, the UAIHL must issue the definitive HL report, for authorization by the affiliate. In cases where the procedure is carried out through technological means, authentication of the affiliate or beneficiary will be necessary, according to the manner established by the UAIHL; and f) Once the HL is authorized by the affiliate or beneficiary, the UAIHL will make the information available, through the technological means it defines for such effects, to the corresponding Pension Institution.

Art. 8.- The HL report must specify as a minimum the following information: a) Date and time of issuance; b) Name of the affiliate to the SPP or SAP; c) Identification if it is the preliminary or definitive HL; d) Identification of the UAIHL person who issued it; and e) Detail of the registered contribution, specifying the following: i. Period of contribution in the format yyyy/mm; ii. Name of the employer; iii. Days contributed; iv. Contribution base salary; v. Status of the contribution; and vi. Identification if annex documents were presented.

Likewise, information regarding the HL issuance request number, identity document number, and date of birth of the affiliate or beneficiary may be added.

Deadline for delivery of the work history report Art. 9.- HL report requests must be resolved within a maximum period of sixty business days by the UAIHL.

CHAPTER III ON THE REVIEW OF THE WORK HISTORY

On the request for review of the work history Art. 10.- In cases where the affiliate or beneficiary is not in agreement with the information recorded in the preliminary HL issued, they must present to the UAIHL in person or through technological means, the request for review of the work history. Affiliates or beneficiaries will have one year from the receipt of the preliminary HL report to present the HL review request to the UAIHL; after this period has elapsed, the UAIHL will proceed to close the process initiated by the affiliate or beneficiaries.

Art. 11.- The UAIHL must provide advice to the affiliate or beneficiary for filling out the request, regarding the review of their HL report and regarding the documents they must present to prove service times that do not appear accredited or that present erroneous information, in accordance with Article 20 of the SP Law.

Minimum content of the request for review of the work history Art. 12.- The HL review request must contain as a minimum the following information: a) Review of the Work History in the Pension System b) Sequential number of the request; c) [Text missing in source] d) Full name; e) [Text missing in source] f) Sex; g) Full name of both parents, where applicable; h) Affiliation number with ISSS or INPEP, as applicable; i) Identity Document (DUI, Passport, or Resident Card), as applicable; j) Address for notification; k) Email; l) Landline or cell phone number; m) Reason for the request, which may be: i. Old age benefit; ii. Disability pension; iii. Survivor pension; iv. Benefit for serious illness or grave terminal illness, return of balance to Salvadorans residing abroad or return of balance to foreigners; and v. Other. n) Information on work background, indicating if the affiliate contributed to the ISSS, INPEP, or both; o) Detail of the inconsistencies identified in the preliminary HL report issued: i. Worked periods that do not appear in the report; ii. Worked periods that appear in the report, but do not correspond to the affiliate; iii. Duplication of information; iv. Registered salary differs from the real amount; and v. Others p) Space for additional observations; q) Signature of the affiliate or beneficiary in physical requests. In cases where the procedure is carried out through electronic channels, authentication of the affiliate or beneficiary will be necessary, according to the mechanisms established by the UAIHL; and r) Name of the UAIHL person who receives the request, and date of receipt.

Art. 13.- If the affiliate or beneficiary does not have sufficient information to fill out the request, it will be sufficient to complete the information regarding the identification of the affiliate and the missing periods or the detail of the identified inconsistency. The foregoing does not exempt the UAIHL from carrying out the search for the corresponding contributions to remedy the inconsistencies and resolve the HL review request.

Art. 14.- If the affiliate or beneficiary requests the review of contributed salaries, they must specify, in the HL report, next to the claimed month, the amount of the correct salary. Such report must be attached to the HL review request.

Art. 15.- Affiliates or beneficiaries, in order to facilitate the search for information and reduce the response time on the part of the UAIHL, may present documentary proof of the claimed periods, in accordance with Chapter IV of these Standards.

Art. 16.- In order to resolve HL review requests, both for affiliates to the SPP or SP and for beneficiaries, the UAIHL must verify, in coordination with the Pension Institutes of the SPP in the documentary archives and microfilm, the claimed periods and salaries. After said verification has been carried out, the mechanisms established in this Chapter of these Standards may be applied again, provided that it is appropriate according to the information found or the new information provided by the affiliates or beneficiaries.

Deadline for resolution of work history review request Art. 17.- The UAIHL must resolve HL report review requests within a maximum period of sixty business days, counted from the date of receipt of the same. Once the HL review request is resolved, the UAIHL must issue

the HL again to the affiliate or beneficiary.

CHAPTER IV MECHANISMS TO COMPLEMENT THE INFORMATION OF THE WORK HISTORY DATABASE

Update of affiliation data Art. 18.- The database information that identifies the affiliate must be updated according to the identity documents presented by the affiliate or their beneficiary. In case the affiliate possesses or is identified with more than one name, two or more affiliation numbers, these must be associated for the same affiliate, in such a way that their affiliation record and work history are consolidated and identified with a single Identity Document.

Accreditation by probative documentation Art. 19.- All periods and salaries that are proven through the documentation established in Articles 28 and 29 of these Standards will be accredited.

Accreditation by association of contributions Art. 20.- With the information provided by the affiliate or beneficiary, it must be identified and accredited those contributions that are proven to have been reported only with a name, lacking an affiliation number, registration, or Identity Document. The accreditation must be carried out through a search procedure by name, year, period, and employer, to then associate the contributions with the respective affiliation number, registration, or Identity Document.

Accreditation by additional information sources Art. 21.- For affiliates who contributed to the ISP, the Database may be complemented with information from the ISSS Health Regime, or with information obtained from the various databases of work records provided by Public Institutions.

Accreditation by reference periods Art. 22.- The Database may be complemented through accreditation of gaps between two reference periods, reported by the same employer. This mechanism may be used to remedy gaps in times prior to May 1998.

Art. 23.- Accreditation by reference periods will be understood as when, a gap detected between two reference periods, called A and B (being A earlier than B and both reported by the same employer), the missing months are assigned, with the salary that appears recorded in reference period A and with the days corresponding to the months that are accredited. In no case can the periods accredited through this mechanism become reference periods for future accreditations.

Criteria for accreditation by reference periods Art. 24.- To remedy gaps in ISSS information, accreditation by reference periods will be applied, provided that the maximum number of months to be accredited between reference periods is three.

Notwithstanding what is established in the previous paragraph, accreditation by reference periods may be applied regardless of the number of months that make up the gap for the following time ranges: a) December 1973 to December 1974 b) December 1975 to October 1976 c) December 1983 to July 1984.

Art. 25.- Gaps in INPEP information may be completed through accreditation by reference periods, according to criteria established for different time ranges, according to the following table: Table 1. Criteria for accreditation by reference periods (INPEP) Time Range The missing periods are accredited when the maximum number of months between reference periods is From 1965 to 1975 6 From 1976 to 1984 4 From 1985 to 1997 3 December 1997 to May 1998 4

Search in documentary archive Art. 26.- The information that cannot be completed from the mechanisms described in this chapter, but that the affiliate affirms they contributed to, must be verified in the documentary archives and microfilm of the Pension Institutes.

Request for information to employers Art. 27.- Having exhausted the previous mechanisms, the Pension Institutes, the AFPs, the affiliates or their beneficiaries, may request information from employers to prove the declaration and payment of pension contributions. Employers must provide such documentation, within fifteen business days following the request. The Pension Institutes must inform the Superintendence about the non-compliance with what is established in the previous paragraph, in order to follow the corresponding legal actions.

On the proof of service times Art. 28.- The admissible documentation to prove service times and contributed salaries by persons who worked in the public sector, will be: a) Photocopy of the payrolls, certified by the competent official;