Technical Standards for the Refund of Balance to Non-Pensioned Salvadorans Residing Abroad with Regular Permanent Migratory Status

NSP-73
SALVADOREAN NON-PENSIONED RESIDENTS ABROAD
AND WITH REGULAR PERMANENT MIGRATORY STATUS
Approval: 30/12/2022
Validity: 30/12/2022

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

I. That by Legislative Decree No. 614 dated December 20, 2022, published in the Official Journal No. 241, Volume No. 437, of the 21st of the same month and year, the Comprehensive Pension System Law was issued.

II. That Article 127 of the Comprehensive Pension System Law establishes that non-pensioned Salvadorans who reside 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 Pension System Law establishes that affiliates who access the benefit of balance refund as established in the present Law, shall have the right to receive the refund of their contributions to the Solidarity Guarantee Account.

IV. That Article 131 of the Comprehensive Pension System Law establishes that the Central Reserve Bank of El Salvador, through its Standards Committee, will issue the necessary Technical Standards that allow the development of what is established in Chapter VII of the referred Law.

V. That Article 159 of the Comprehensive Pension System Law 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.

VI. That for the purpose of having greater legal and technical certainty regarding the process for the refund of balance to non-pensioned Salvadorans who reside in a foreign country and have a regular permanent migratory status abroad, it is pertinent that Technical Standards be issued regulating the granting of the benefit established in the Comprehensive Pension System Law.

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

NSP-73
SALVADOREAN NON-PENSIONED RESIDENTS ABROAD
AND WITH REGULAR PERMANENT MIGRATORY STATUS
Approval: 30/12/2022
Validity: 30/12/2022

TECHNICAL STANDARDS FOR THE REFUND OF BALANCE TO NON-PENSIONED SALVADOREANS RESIDING ABROAD AND WITH REGULAR PERMANENT MIGRATORY STATUS

CHAPTER I
OBJECT, SUBJECTS AND TERMS

Object
Art. 1.- These Standards aim 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 obligated to comply with the provisions established in these Standards are the Pension Fund Administrators.

Terms
Art. 3.- For the purposes of these Standards, 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 to 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 balance accumulated in the Social Fund for Housing will form part of the Individual Savings Account for Pensions, when applicable; e) CGS: Solidarity Guarantee Account; f) CT: Transfer Certificate; g) DUI: Unique Identification Document; h) Retirement Age: Completed age that enables an affiliate to opt for a old-age benefit, according to what is established in Article 96 of the Comprehensive Pension System Law; i) Regular Permanent Migratory Status: It is the unconditional residence assigned to a person by the migratory authority upon entry to the receiving country, which for the purposes of these Standards may be a permanent residence or Citizenship in the foreign country where they reside; j) FSV: Social Fund for Housing;

NSP-73
SALVADOREAN NON-PENSIONED RESIDENTS ABROAD
AND WITH REGULAR PERMANENT MIGRATORY STATUS
Approval: 30/12/2022
Validity: 30/12/2022

k) SP Law: Comprehensive Pension System Law; l) System: Pension System; m) SPP: Public Pension System; n) Superintendence: Superintendence of the Financial System; and o) UAIHL: Comprehensive Unit for Labor History Attention.

CHAPTER II
PROCEDURE FOR REFUND OF BALANCE OF THE INDIVIDUAL SAVINGS ACCOUNT FOR PENSIONS TO SALVADOREAN 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, 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 Standards.

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 Representation and/or Consulate 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 Representations and/or Consulates of El Salvador will send to the AFPs by electronic means or any other means that these enable for such effects, copies of the form and the certified documentation; b) Through a Notary legally authorized for such purposes in their country of residence, and subsequently the process of legalization and translation of the 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 benefit of balance refund, the AFP may proceed with said procedure provided that the affiliate completes the respective application for the process, and presents the corresponding certified documents. The certification may have been carried out by the affiliate at a Diplomatic Representation and/or Consulate of El Salvador or through a Notary enabled for such purposes 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 to the CIAP at the date of presentation of the refund request, in order to determine the reason and validity of such contributions, with the purpose of validating that the affiliates actually reside abroad.

Regarding the refund application
Art. 7.- The Salvadoran affiliate residing abroad who requests the refund of their CIAP balance must complete the respective application for which the AFPs issue for such purposes, which must be available to affiliates in their offices or through the electronic means that these enable. Such 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 their 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, authentication of the affiliate is necessary, according to the manner established by the AFP.

Attachments of the application
Art. 8.- The application must be accompanied by the certification of the documents that prove the migratory status and the residence of the affiliate abroad, as well as a copy of the valid document that proves their Salvadoran nationality.
In cases where the procedure is carried out through a representative, the latter 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.- Upon receipt of the application in firm according to what is established in Articles 7 and 8 of these Standards, 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 balance 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. Upon presentation of the complete and duly formatted documentation, the AFP will proceed with the procedures for the refund of balance, within the period established in Article 15 of these Standards. If the Salvadoran affiliate residing abroad does not remedy the observation within the period indicated in the previous paragraph, having been notified of the same, 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 rejection within a maximum period of five business days following the date on which it was rejected. In case the application is submitted by physical means, it must not contain smudges, strikethroughs, or any other alteration of the same. 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 submitted by electronic means, the AFP must provide an electronic receipt of the process carried out.

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

NSP-73
SALVADOREAN NON-PENSIONED RESIDENTS ABROAD
AND WITH REGULAR PERMANENT MIGRATORY STATUS
Approval: 30/12/2022
Validity: 30/12/2022

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

Determination of the balance refund
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 performed, 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 to the SPP, and had the right to a CT, will request the issuance and payment thereof. 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 Labor History, for which it will make available to them in their offices or through the corresponding electronic means, the application form for scheduling the referred appointment. The Labor History must be managed by the affiliate at the UAIHL either in person or through the electronic means that it enables for this effect, for its corresponding issuance, review, and acceptance. The UAIHL must finalize procedures related to the generation of the Labor History report within a maximum period of 15 business days after receiving the respective application.

Art. 13.- Once the affiliate accepts the referred History, the AFP must manage the issuance and payment of the CT in accordance with Articles 147 and 148 of the SP Law, as well as request 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 shall 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 [Technical Standards referenced in text, likely NSP-43 and NSP-44], approved by the Central Bank through its Standards Committee.

Payment of the balance refund
Art. 15.- The balance refund may be cancelled by means of account credit or check in the name of the Salvadoran affiliate residing abroad, no later than thirty business days after the presentation of the balance refund application and the complete documentation, as established in the second paragraph of Article 127 of the SP Law. Refund that may be carried out as follows:
a) Through a single disbursement, the amount corresponding to the CIAP and contributions to the CGS, in cases where applicable, when the Salvadoran affiliate residing abroad had contributed only to the System; or b) Through two or more disbursements, in cases where the Salvadoran affiliate residing abroad had contributed to 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 procedure will be followed:
i. A first disbursement which will include the components detailed in letter a) of this article, which may be carried out while the affiliate processes the issuance of their Labor History in the SPP; and
ii. A second or more disbursements which will include the components detailed in letter b) of this article, 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 so state 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 costs corresponding to said transfer will be at their expense, and the AFP may deduct said costs 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 balance refund will be identified in the views of the AFPs and the Superintendence with the code DVN, ending their affiliation contract and the rights generated by it.
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.

NSP-73
SALVADOREAN NON-PENSIONED RESIDENTS ABROAD
AND WITH REGULAR PERMANENT MIGRATORY STATUS
Approval: 30/12/2022
Validity: 30/12/2022

Code of operations
Art. 17.- The refunds of balance 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 Standards.

Information Requirement
Art. 18.- The AFP must send to the Superintendence, on the same day that the refund is made, the information indicated in the [Technical Standards referenced in text, likely NSP-63 and NSP-64], for the corresponding update.

Art. 19.- The AFP is responsible for keeping an updated record to control the balance refunds referred to in these Standards.

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

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

Unforeseen Aspects
Art. 22.- The unforeseen aspects in terms of regulation in these Standards will be resolved by the Central Bank through its Standards Committee.

Validity
Art. 23.- These Standards will enter into force as of December 30, two thousand twenty-two.

MODIFICATIONS:
(1) Modifications in Article 7, approved by the Central Bank through its Standards Committee, 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
NSP-73
SALVADOREAN NON-PENSIONED RESIDENTS ABROAD
AND WITH REGULAR PERMANENT MIGRATORY STATUS
Approval: 30/12/2022
Validity: 30/12/2022

MOVEMENT CODE IN THE CIAP TO IDENTIFY THE REFUNDS OF BALANCE TO SALVADOREANS RESIDING ABROAD

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