Technical Standards for the Expansion of Attention Channels in Pension Systems Through Technological Means

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-68 TECHNICAL STANDARDS FOR THE EXPANSION OF ATTENTION CHANNELS IN PENSION SYSTEMS THROUGH TECHNOLOGICAL MEANS Approval: 12/30/2022 Validity: 12/30/2022

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

CONSIDERING: I. That by Legislative Decree No. 614, dated December 20, 2022, and published in the Official Journal 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 27 of the Comprehensive Law of the Pension System establishes that, for the exercise of operations authorized to Administrators in said Law, electronic channels, digital media, or any other technological means may be used, in accordance with what is established by a Technical Standard issued by the Standards Committee of the Central Bank. III. 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 Standards that allow for the development of what is established in the referred Law. IV. That Article 1 literal a) of the Electronic Signature Law establishes that the object of that Law is to equate the simple electronic signature and the certified electronic signature with the handwritten signature. V. That Article 6 of the Electronic Signature Law establishes that the simple electronic signature will have the same legal validity as the handwritten signature. VI. That Article 7 of the Electronic Signature Law establishes that the data message using a certified electronic signature, regardless of its transmission or storage medium, will have the same legal validity equivalent to the content of those emitted conventionally; that is, that they are granted, stored, or transmitted by physical means. VII. That Article 18 of the Administrative Procedures Law establishes that the bodies of the Public Administration may use information and communication technologies to carry out procedures, diligences, notifications, summons, or requirements, provided that said technological means enable the issuance of a certificate, offer guarantees of authenticity, confidentiality, integrity, efficiency, availability, and conservation of information, and are compatible with the nature of the procedure to be carried out. VIII. That Article 19 of the Administrative Procedures Law establishes that documents issued by the bodies of the Public Administration through information and communication technologies will enjoy the validity of an original document, provided that its authenticity, integrity, and conservation are guaranteed, and that the requirements and guarantees established by the relevant legislation are met. For this purpose, the Public Administration may use any of the forms of electronic signature or authentication mechanisms. IX. That it is appropriate to implement measures that facilitate access to pension services through electronic channels, digital media, or any other technological means.

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 THE EXPANSION OF ATTENTION CHANNELS IN PENSION SYSTEMS THROUGH TECHNOLOGICAL MEANS

CHAPTER I OBJECT, SUBJECTS, AND TERMS

Object Art. 1.- These Standards aim to regulate the use of technological means for the attention of natural or legal persons who use or are interested in the services of the Pension System, both the Public System and the Previsional Pension System, continuity of processes, and compliance with legal and regulatory obligations through said technological means. The use of technological means will be at the choice of affiliates, pensioners, or beneficiaries without this generating any additional cost to them. Likewise, this does not exempt Pension Institutions from the obligation to provide in-person attention through agencies, offices, delegations, or points of attention open to the general public.

Subjects Art. 2.- The subjects obliged to comply with the provisions established in these Standards are the following: a) Pension Fund Administrators (AFP); b) Salvadoran Institute of Pensions (ISP); c) Social Prevision Institute of the Armed Forces; and d) Salvadoran Institute of Social Security (ISSS), with respect to the Old Age, Disability, and Death Regime, administered by the ISSS Pension Unit. (1)

Terms Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning: a) AFP: Pension Fund Administrator; b) Central Bank: Central Reserve Bank of El Salvador; c) Standards Committee: Standards Committee of the Central Reserve Bank of El Salvador; d) Identity Document: It may be the Unique Identity Document, Minor's Card, Passport, or Resident Card, as applicable; (1) e) Entity: Subject obliged to comply with these Standards; (1) f) Labor History: Labor History of the Public Pension System; (1) g) Pension Institutions: Pension Fund Administrators, Salvadoran Institute of Pensions, Social Prevision Institute of the Armed Forces, and the Salvadoran Institute of Social Security; (1) h) SP Law: Comprehensive Law of the Pension System; (1) i) Technological Means: Mechanism, installation, application, equipment, or system that allows producing, storing, processing, or transmitting data or information; including any open or restricted communication networks such as the Internet, fixed and mobile telephony, or others; (1) j) Superintendence: Superintendence of the Financial System; and (1) k) Comprehensive Labor History Attention Unit: Office that centralizes the issuance of the Labor History that certifies based on time of service and contributions made to Pension Institutions. (1)

CHAPTER II ON THE USE OF TECHNOLOGICAL MEANS

Use of technological means Art. 4.- Pension Institutions may use technological or digital means to expand attention channels to natural or legal persons interested in the services provided by the Pension System, provided that in these procedures the issuance of a certificate, backup, or record is enabled, considering guarantees of authenticity, confidentiality, integrity, availability, and conservation of information, and are compatible with the nature of the requirements established in the corresponding Law to carry out the procedure.

Procedence of the use of technological means Art. 5.- The use of these channels or means indicates that the Pension Institution has previously analyzed the application of the same to each operation or procedure in particular, considering elements of its security, confidentiality of information, and the application of risk management controls associated with the processes carried out in compliance with legal requirements to access them. Notwithstanding the foregoing, the Pension Institution will be authorized to request natural or legal persons interested in the services provided by the Pension System to present physical documents in exceptional cases and at any time during the process.

Authentication mechanisms Art. 6.- Pension Institutions may use any of the authentication mechanisms or electronic signatures to validate the identity of the interested party in all processes carried out through technological means. These means may be used provided that the corresponding Law does not establish a contrary provision; in case the Laws establish the use of the handwritten signature, Pension Institutions may use any of the forms of electronic signature.

Art. 7.- Pension Institutions are obliged to guarantee that acts of communication and acceptance have been received by the natural or legal persons interested in the services provided by the Pension System, and in cases where consent is required, that the manifestation of will comes from them, complying with the principles and requirements established in the Laws applicable to the technological or digital means used as attention channels. To safeguard the legal security of natural or legal persons interested in the services provided by the Pension System, documents issued in these operations or procedures must consider among their characteristics authenticity, integrity, and conservation of information and comply with the requirements established in the Laws for such effect. In addition to considering the probative value that the legislation grants to means of reproduction of sound, voice, data, or image, and data and information storage resources. Regarding the period for the preservation of information, this will be determined by each Pension Institution considering the legislation applicable to it according to its nature.

CHAPTER III ON THE PROOF OF SURVIVAL, STUDENT STATUS, AND LABOR HISTORY (1) Art. 8.- For the specific cases of: proof of survival, proof of student status, and request for Labor History through the use of technological means, they will also be carried out in accordance with what is established in this Chapter, always considering guarantees of authenticity, confidentiality, integrity, availability, and conservation of information. (1)

On the proof of survival Art. 9.- Pension Institutions may carry out the proof of survival, necessary for the enjoyment of some benefits, through communication means such as telephone calls, video calls, or biometric mechanisms, with the objective that pensioners or beneficiaries can continue to enjoy the benefits granted to them by the SP Law, without the need to travel to agencies or offices. For the implementation of this method of proof of survival, Pension Institutions must request from pensioners or beneficiaries for validation purposes, the following information: a) Name of the pensioner; (1) b) Identity Document of the pensioner; (1) c) Type of pension: Disability, old age, or survival (widowhood, orphanhood, or ascension); (1) and d) Personal data (Address and phone, both personal and work, email, among others). (1) Pension Institutions may request any other information they consider necessary for the validation of the proof of survival. To comply with this article, Pension Institutions must disseminate through the communication media they consider pertinent, the process of proof of survival for the purpose that it is known by the pensioners.

Art. 10.- Repealed. (1)

Art. 11.- Repealed. (1)

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Alternative means for compliance with proof of student status for survival beneficiaries Art. 12.- Survival pension beneficiaries over 18 years of age, who must prove their student status, may present the required information and documentation for the proof of said status through the technological means made available by Pension Institutions. Reconstruction of the Labor History of the Public Pension System (1) Art. 13.- Requests for Labor History for affiliates who have reached the legal age to access benefits for old age, disability, or survival, may be managed through the technological means made available by the Comprehensive Labor History Attention Unit. (1) For these cases, affiliates or beneficiaries must request the reconstruction of the Labor History by providing the data required by the Comprehensive Labor History Attention Unit. The affiliate or beneficiary, through email or other technological means, must manifest their authorization of the recorded times to continue with procedures before the corresponding Pension Institution. In cases where the affiliate or beneficiary is not in agreement with the times recorded in their Labor History report or considers that they are not complete, they must contact the Comprehensive Labor History Attention Unit to initiate the review procedure.

CHAPTER IV OTHER PROVISIONS AND VALIDITY

Internal controls Art. 14.- The implementation of the provisions contained in these Standards will imply the application of measures that allow the correct identification of interested parties in the processes, the safeguarding of information sent by natural or legal persons interested in the services provided by the Pension System, for the purpose of safeguarding their right to privacy. Pension Institutions may use microfilm, optical discs, magnetic media, technological means, or any other means that allows archiving documents and information, with the objective of conserving records, documents, and reports efficiently.

Internal Audit Art. 15.- The Internal Audit Unit must consider in its annual work plan the evaluation of compliance with the provisions of these Standards.

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On external auditors Art. 16.- External auditors of the entity must include in their periodic evaluation, the review of processes associated with the implementation of technological or digital means in accordance with what is established in the Technical Standards for the Management of Money Laundering and Asset Risks, Terrorism Financing, and Financing of the Proliferation of Weapons of Mass Destruction (NRP-36) and Technical Standards for the Management of Operational Risks (NRP-24), issued by the Central Bank through its Standards Committee.

Risk management Art. 17.- For efficient risk management associated with the identification of natural or legal persons interested in the services provided by the Pension System, the use of technological and digital means in the services provided by Pension Institutions must observe what is established in the Technical Standards for the Management of Money Laundering and Asset Risks, Terrorism Financing, and Financing of the Proliferation of Weapons of Mass Destruction (NRP-36) and Technical Standards for the Management of Operational Risks (NRP-24), issued by the Central Bank through its Standards Committee.

Sanctions Art. 18.- Non-compliance with the provisions contained in these Standards will be sanctioned in accordance with what is established in the Law on Supervision and Regulation of the Financial System.

Transitory Art. 19.- AFPs will have a period of 90 days to make the corresponding adjustments related to the substitution of the Unique Pension Number by the Identity Document Number in Systems, forms, or others where this change applies.

Repeal Art. 20.- The Technical Standards for the Expansion of Attention Channels in Pension Systems Through Technological Means (NSP-34) approved by the Central Bank through its Standards Committee, in Session CNBCR-22/2020 dated December 16, 2020, are hereby repealed.

Unforeseen Aspects Art. 21.- Aspects not provided for in the regulatory matter in these Standards will be resolved by the Central Bank, through its Standards Committee.

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Validity Art. 22.- These Standards will enter into force as of the thirtieth of December of two thousand twenty-two.

MODIFICATIONS: (1) Modifications approved by the Standards Committee of the Central Reserve Bank of El Salvador in Session No. CN-01/2023 on January 26, two thousand twenty-three, with effect from January 26, two thousand twenty-three.