Technical Standards for the Granting of Pecuniary Benefits for Common Disability in the Public Pension System — SSF — SV

CNBCR-11/2022	NSP-69
Approval: 30/12/2022	TECHNICAL STANDARDS FOR THE GRANTING OF PECUNIARY BENEFITS FOR COMMON DISABILITY IN THE PUBLIC PENSION SYSTEM	[BCR Logo]
Validity: 30/12/2022

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 2, letter m) of the Comprehensive Law of the Pension System establishes that the benefits established in said Law will be applicable to affiliates of the Public Institutes.

III. That Article 99 of the Comprehensive Law of the Pension System establishes that non-pensioned affiliates who, without meeting the age requirements to access old-age pension, suffer a reduction in the capacity to exercise any work, as a consequence of illness, common accident, or weakening of their physical or intellectual forces, shall have the right to a disability pension, but not those who become disabled due to occupational risks.

IV. That Article 100 of the Comprehensive Law of the Pension System establishes the requirements for affiliates of the Pension System to have the right to total or partial disability pension.

V. That Article 101 of the Comprehensive Law of the Pension System establishes that for the payment of disability pensions, the pension will be determined as a percentage of the Regulator Basic Salary in the aforementioned Law. Additionally, it establishes that the disability pension cannot be lower than the minimum pension established in said Law.

VI. That Article 149 of the Comprehensive Law of the Pension System establishes that the Public System, which includes the Pension Unit of the Salvadoran Institute of Social Security and the Salvadoran Institute of Pensions, must provide benefits in accordance with said Law and its own creation Laws.

VII. 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 the development of what is established in the referred Law.

VIII. That Article 7, letter l) of the Law on Supervision and Regulation of the Financial System, establishes that the National Institute of Pensions of Public Employees and the Salvadoran Institute of Social Security, the latter with respect to the Public Pension System, the Regime of Risks

CNBCR-11/2022	NSP-69
Approval: 30/12/2022	TECHNICAL STANDARDS FOR THE GRANTING OF PECUNIARY BENEFITS FOR COMMON DISABILITY IN THE PUBLIC PENSION SYSTEM	[BCR Logo]
Validity: 30/12/2022

Professionals and technical health reserves.

IX. That Article 101, fourth paragraph of the Law on Supervision and Regulation of the Financial System, establishes that the powers to approve, modify, and repeal technical norms that must be complied with by the members of the financial system and other supervised entities, which were attributed to the Superintendencies or the Director Boards of the Superintendencies whose organic laws have been repealed by the same Law, are transferred to the Central Bank.

X. That it is necessary to establish the procedures for the granting of Common Disability Benefits in the Salvadoran Institute of Social Security and the Salvadoran Institute of Pensions, so that this is carried out in an agile and efficient manner, taking into consideration the interrelation that must exist between said Institutes and the Invalidity Qualifying Commission, for the determination of rights.

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 STANDARDS FOR THE GRANTING OF PECUNIARY BENEFITS FOR COMMON DISABILITY IN THE PUBLIC PENSION SYSTEM

CHAPTER I
OBJECTIVE, SUBJECTS AND TERMS

Objective
Art. 1.- The objective of these Standards is to establish the procedures to be followed regarding the granting of Benefits and other Common Disability Benefits, generated by virtue of the Comprehensive Law of the Pension System.

Subjects
Art. 2.- The subjects obliged to comply with the provisions established in these Standards are:

a) Salvadoran Institute of Social Security; and b) Salvadoran Institute of Pensions.

CNBCR-11/2022	NSP-69
Approval: 30/12/2022	TECHNICAL STANDARDS FOR THE GRANTING OF PECUNIARY BENEFITS FOR COMMON DISABILITY IN THE PUBLIC PENSION SYSTEM	[BCR Logo]
Validity: 30/12/2022

Terms
Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning:

a) Central Bank: Central Reserve Bank of El Salvador; b) Invalidity Qualifying Commission (CCI): Instance 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 common or professional illness or accident and qualify the degree of disability. This Commission is the only one legally authorized to qualify applications and issue Disability Opinions in accordance with the provisions contained in the "Technical Standards for the Qualification of the Degree of Disability and Determination of Serious Illness to Dictate the Right to Disability Pension and Return of Balance for Serious Illness by the Invalidity Qualifying Commission" (NSP-45), issued by the Central Reserve Bank through its Committee of Norms; c) Conversion: Refers to the change from a disability pension to an old-age pension. This concept will apply when pensioners by disability reach the age of 60 in the case of men, and 55 in the case of women; d) DUI: Unique Identity Document; e) Great Disability: Qualification that means the loss of work capacity greater than two-thirds and additionally generates incapacity for the person to perform the primary acts of ordinary life. Primary acts of ordinary life will be understood as activities that tend to satisfy a person's basic needs, such as eating, dressing, moving, grooming, and sphincter control; f) IBC: Contribution Base Income; g) INPEP: National Institute of Public Employees, prior to the entry into force of the Law Creating the Salvadoran Institute of Pensions. h) Previsionary Institute: Refers to the Salvadoran Institute of Pensions and the Salvadoran Institute of Social Security; i) Invalid: Worker affiliated or beneficiary who as a consequence of physical and/or intellectual impediment, of common origin, in accordance with Article 99 of the Comprehensive Law of the Pension System, suffers permanent reduction of work capacity; j) Partial Disability: Disability qualification that means the loss of work capacity equal to or greater than fifty percent and less than two-thirds; k) Total Disability: Disability qualification that means the loss of work capacity of at least two-thirds of work capacity; l) ISP: Salvadoran Institute of Pensions; m) ISSS: Salvadoran Institute of Social Security; n) INPEP Number: Number granted by the National Institute of Public Employees to its affiliates, prior to the entry into force of the Law Creating the

CNBCR-11/2022	NSP-69
Approval: 30/12/2022	TECHNICAL STANDARDS FOR THE GRANTING OF PECUNIARY BENEFITS FOR COMMON DISABILITY IN THE PUBLIC PENSION SYSTEM	[BCR Logo]
Validity: 30/12/2022

Salvadoran Institute of Pensions. o) SP Law: Comprehensive Law of the Pension System; p) Contributed month: It will be understood as such, the month in which at least one day appears contributed in the Previsional Contribution Payroll corresponding to a calendar month; q) IVM Regime: Invalidity, Old Age, and Death Regime; r) SBR: Regulator Basic Salary; and s) SPP: Public Pension System.

CHAPTER II
ON COMMON DISABILITY BENEFITS IN THE SPP

On the common disability pension
Art. 4.- The common disability pension is the pecuniary benefit granted to SPP affiliates who suffer a permanent reduction in the capacity to exercise any work, as a consequence of illness, common accident, or weakening of their physical or intellectual forces, provided that on the date the reduction occurs, they have not yet met any of the requirements established to access an old-age pension.

On the common disability allowance
Art. 5.- The common disability allowance is the pecuniary benefit granted to SPP affiliates only once, when they are declared invalid due to common risk by the first opinion issued by the CCI, register at least twelve months of contributions in the ISSS or ISP, and do not meet the requirement to access a disability pension, in accordance with what is established in the third paragraph of Article 149 of the SP Law.

Notwithstanding what is established in the previous paragraph, the affiliate may choose payment in six annual installments in accordance with what is established in the fifth paragraph of Article 149 of the SP Law.

For contribution to the ISSS health program, what is established in Article 154 of the SP Law must be observed.

The granting of the common disability allowance by first opinion, in addition to extinguishing any right that might be based on contribution periods that served to justify the payment of said allowance (including old-age benefits), ends the disability qualification process with the CCI, that is, it will no longer be possible for the affiliate to submit to the second opinion or re-evaluation of said disability.

CNBCR-11/2022	NSP-69
Approval: 30/12/2022	TECHNICAL STANDARDS FOR THE GRANTING OF PECUNIARY BENEFITS FOR COMMON DISABILITY IN THE PUBLIC PENSION SYSTEM	[BCR Logo]
Validity: 30/12/2022

On the total and partial disability pension
Art. 6.- Common disability pensions according to Article 99 of the SP Law, may be total or partial, as follows:

a) Total disability pension, for affiliates who suffer the loss of at least two-thirds of their work capacity; and b) Partial disability pension, for affiliates who suffer loss equal to or greater than half and less than two-thirds of their work capacity.

The benefits indicated in Articles 4, 5, and 6 of these Standards will not be applicable in the case that the reduction in the capacity to exercise any work has its origin in the risks derived from the labor activity or occupation exercised by a worker, which have their coverage in the General Regime of Illness, Maternity, and Occupational Risks of the ISSS and are governed by the provisions contained in the "Technical Standards for the Qualification of the Degree of Disability and Determination of Serious Illness to Dictate the Right to Disability Pension and Return of Balance for Serious Illness by the Invalidity Qualifying Commission" (NSP-45), approved by the Central Bank through its Committee of Norms and the Regulation for the Application of the Social Security Regime.

CHAPTER III
REQUIREMENTS TO HAVE THE RIGHT TO COMMON DISABILITY BENEFITS

Requirements for the common disability pension Art. 7.- Affiliates who become invalid due to common risk, for the purpose of having the right to a disability pension, must meet the following requirements:

a) Not have the legal age to retire for old age; and b) Be declared by the Invalidity Qualifying Commission as invalid due to common risk;

Additionally, they must meet any of the following requirements:

a) Three years of continuous or discontinuous contributions, registered during the five years prior to the date they were declared invalid by a first opinion; b) Be contributing at the moment the disability was declared in case of common accident or illness, or that they had contributed at least six months during the last twelve and the common accident or illness occurred after their affiliation; or c) Register a minimum of ten years of effective contributions on the date of invalidity, or subsequently if it is a disability pensioner who continues to contribute.

CNBCR-11/2022	NSP-69
Approval: 30/12/2022	TECHNICAL STANDARDS FOR THE GRANTING OF PECUNIARY BENEFITS FOR COMMON DISABILITY IN THE PUBLIC PENSION SYSTEM	[BCR Logo]
Validity: 30/12/2022

To determine the completed age of affiliates, the criterion of exact chronological age will be applied, that is, without using approximations of months to the next higher age.

To establish the right to a disability benefit Art. 8.- The criteria used by the previsionary institutes to establish the right to a disability benefit are those established in Article 100 of the SP Law.

If the affiliate, or their representative, disagree with the contribution time registered, they must present their claim to the Previsionary Institute, attaching the probative documents of said times and contributed salaries.

If the affiliate has accumulated the necessary time to generate a disability pension, it will not be an impediment to calculate the respective benefit that there are contributions in arrears. In any case, it will be the option of the interested party, or their representative, whether the definitive calculation of the pension is carried out omitting said arrears or if said calculation remains suspended until the date when the contributions and contributions that should have been made in favor of the affiliate are recovered. The recovery of said contributions and contributions will be managed by the Previsionary Institute upon request of the interested party.

In cases where the periods that present problems serve to complete the times required to obtain the right to pension, this situation must be reported to the interested party(ies), in order to give them the option between a disability allowance or initiating the management of collection of the arrears. If they opt for the latter, the calculation of the pension will be suspended, restarting the date when said contributions have been recovered. If after the administrative or judicial collection actions have not obtained the recovery of the arrears, the possibility of granting a Disability Allowance must be determined.

Notwithstanding the above, arrears attributable to the employer may be paid directly by the affiliate, provided that it is demonstrated that there was a labor dependency relationship; in such cases, the affiliate will pay the necessary contributions at nominal value, to access the corresponding benefit in accordance with what is established in the SP Law without prejudice to the sanctions that could be applied, and the legal actions that could be initiated against the employer. The payment of contributions may be made through the mechanisms established by the Previsionary Institutes.

When the affiliate has contributed times to both Previsionary Institutions, the contributed periods to the ISSS may be accumulated with the contributed times to the ISP or vice versa, only in the case where it is necessary to complete the thirty-six months of contribution required.

CNBCR-11/2022	NSP-69
Approval: 30/12/2022	TECHNICAL STANDARDS FOR THE GRANTING OF PECUNIARY BENEFITS FOR COMMON DISABILITY IN THE PUBLIC PENSION SYSTEM	[BCR Logo]
Validity: 30/12/2022

If within the periods to be accumulated, there are some in which simultaneous contributions were made, said periods will be counted once. For said periods, the Previsionary Institute responsible for calculating the corresponding benefit must sum the IBCs registered in each Previsionary Institute, in order to obtain a single IBC value.

When it is established that the affiliate has contributed times to both Previsionary Institutions, and said times are sufficient for the granting of a disability pension in each one, also verifying that they meet the condition of registering eighteen months of contributions in the last thirty-six calendar months, the accumulation of periods will not proceed. With this provision, two independent benefits could be generated, prior to compliance with the other requirements.

Notwithstanding that there is the possibility of granting two independent benefits that will also be managed in the same way, the Invalidity Qualification procedure with the CCI will be unique and will be carried out through the Previsionary Institution to which the affiliate was contributing on the date they suffer the disability. In view of the foregoing, the CCI will also communicate the manner in which the procedure will be carried out to the other Previsionary Institute.

If the affiliate requests the disability qualification through both Previsionary Institutions, it will be the CCI that will establish which of the Disability Qualification Applications it will accept as valid and with which it will initiate the procedure. For the foregoing, the CCI must communicate the opinion issued to both Previsionary Institutions, in order for each to initiate the procedure for the disability benefit that corresponds, in accordance with what is provided in Articles 22 and 23 of these Standards.

CHAPTER IV
PROCESS FOR THE DISABILITY QUALIFICATION APPLICATION

Art. 9.- An SPP affiliate may initiate the management of the disability qualification procedure by completing and signing the corresponding application, which must be available to them, in the offices of the respective Previsionary Institute or through the electronic means that these make available to their affiliates.

In the case that the affiliate can sign the Disability Qualification Application, but is incapacitated to carry out the procedure directly, they may delegate said procedure to their legal representative or to a relative within the first or second degree of consanguinity.

When the persons referred to in the previous paragraph do not exist, the procedure may be delegated to the spouse, to a relative within the first or second degree of affinity, or to the cohabitant, if applicable. In all cases, said quality must be proven by presenting the corresponding legal documents.

CNBCR-11/2022	NSP-69
Approval: 30/12/2022	TECHNICAL STANDARDS FOR THE GRANTING OF PECUNIARY BENEFITS FOR COMMON DISABILITY IN THE PUBLIC PENSION SYSTEM	[BCR Logo]
Validity: 30/12/2022

The delegated person must present the Disability Qualification Application with the affiliate's signature, legalized before a notary.

Likewise, they may be represented by an attorney, for which they must present their identity document and a power of attorney with a special clause to process the application.

The Previsionary Institute must verify if there is any qualification application in process; if so, it must determine if it became void or in what situation it is, in order to give it continuity and complete the process, in any case, if the delivery of the Disability Qualification Application is appropriate or inappropriate as established in Article 14 of these Standards.

Art. 10.- The Previsionary Institute will consider the Disability Qualification Application received when the affiliate delivers the application duly filled out. On that date, it must indicate that from then on it is subject to the qualification procedures established in the "Technical Standards for the Qualification of the Degree of Disability and Determination of Serious Illness to Dictate the Right to Disability Pension and Return of Balance for Serious Illness by the Invalidity Qualifying Commission" (NSP-45) issued by the Central Bank through its Committee of Norms.

Additionally, it will inform, through written means, the geographic location of the place where the Invalidity Qualifying Commission is located and the public service hours.

Art. 11.- Upon receipt of the Disability Qualification Application and the corresponding attachments, the Previsionary Institute will have five business days to send said documentation to the CCI. Prior to sending, said Institute must make two copies of that documentation and distribute them as follows:

a) The original documentation will be sent to the CCI, with which it will open a file for the affiliate; b) One copy will be for the Previsionary Institute, which must be archived in the affiliate's file, along with the contribution time report, obtained previously; and c) The other copy will be delivered to the affiliate.

When appropriate, the Previsionary Institute must also attach to said Application, the antecedents on disability that the affiliate has provided.

Art. 12.- If the Previsionary Institute has knowledge of the affiliate's impossibility to appear personally for the preliminary interview with the CCI, it must indicate it in the respective form, in order for it to proceed to take the respective actions, in accordance with what is established in Article 41 of the "Technical

CNBCR-11/2022	NSP-69
Approval: 30/12/2022	TECHNICAL STANDARDS FOR THE GRANTING OF PECUNIARY BENEFITS FOR COMMON DISABILITY IN THE PUBLIC PENSION SYSTEM	[BCR Logo]
Validity: 30/12/2022

Standards for the Qualification of the Degree of Disability and Determination of Serious Illness to Dictate the Right to Disability Pension and Return of Balance for Serious Illness by the Invalidity Qualifying Commission" (NSP-45) issued by the Central Bank through its Committee of Norms.

Art. 13.- Affiliates over 60 years old for men and 55 years for women, may manage the disability qualification procedure when said disability occurred before reaching the legal old-age age, for the purpose of determining the right to retroactive pension or allowance payments, from the date indicated by the CCI.

On the appropriateness or inappropriateness for the delivery of applications Art. 14.- The delivery of a new Disability Qualification Application will proceed when the

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