Technical Standards for the Transfer of Pension Information

CNBCR-11/2022 NSP-64 TECHNICAL STANDARDS FOR THE TRANSFER OF PENSION INFORMATION Approval: 30/12/2022 Validity: 30/12/2022

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THE NORMS COMMITTEE 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 on December 21, 2022, the Comprehensive Pension System Law was approved. II. That Article 1 of the Pension System Law establishes that this System comprises the set of norms and measures that Pension Fund Administrators will apply in order to administer resources destined for the payment of benefits to be recognized to affiliates, to cover the common risks of Old Age, Disability, and Death. III. That Article 32 of the Law on Supervision and Regulation of the Financial System establishes that the Superintendence may require supervised entities direct access to all data, reports, or documents regarding their operations through the means and form it defines. IV. That in accordance with Article 37 of the Law on Supervision and Regulation of the Financial System, supervised entities are obligated to facilitate, through the means it deems appropriate, the information, database access, and systems required by the Financial System Superintendence, in all matters pertinent to the supervision activity. V. That Article 90 of the Comprehensive Pension System Law establishes in its sixth paragraph that Pension Fund Administrators must keep a register of natural and legal persons related to their ownership and administration, and must provide the respective information to the Financial System Superintendence at least quarterly. VI. That Article 159 of the Comprehensive Pension System Law establishes that the Central Reserve Bank of El Salvador will issue the Technical Norms necessary to allow the development of what is established in the aforementioned 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:

CNBCR-11/2022 NSP-64 TECHNICAL STANDARDS FOR THE TRANSFER OF PENSION INFORMATION Approval: 30/12/2022 Validity: 30/12/2022

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TECHNICAL STANDARDS FOR THE TRANSFER OF PENSION INFORMATION CHAPTER I OBJECT, SUBJECTS, AND TERMS

Object Art. 1.- These Norms aim to define the information and establish the provisions regarding the transfer of information that Pension Institutions must carry out periodically to the Financial System Superintendence.

Subjects Art. 2.- The subjects obligated to comply with the provisions established in these Norms are the following: a) Pension Fund Administrators (AFP); b) Salvadoran Social Security Institute (ISSS); c) Salvadoran Pension Institute (ISP); and d) Social Security Institute of the Armed Forces (IPSFA).

Terms Art. 3.- For the purposes of these Norms, the terms indicated below have the following meaning: a) AFP: Pension Fund Administrator; b) Central Bank: Central Reserve Bank of El Salvador; c) CIAP: Individual Savings Account for Pensions; d) CMI: Minor's ID Card; e) Identity Document: May be the Unique Identity Document, Minor's ID Card, Passport, or Resident Card, as applicable; f) DUI: Unique Identity Document; g) Fund: Pension Fund; (1) h) IBC: Contribution Base Income; a) INPEP: National Institute of Pensions of Public Employees, which was dissolved by Legislative Decree No. 615, dated December 20, 2022, published in the Official Journal No. 241, Volume No. 437 of December 21, 2022; i) Pension Institution(s): Any of the following Institutions: ISSS, ISP, IPSFA, or AFP; j) Pension Institutes: ISSS and ISP; k) IPSFA: Social Security Institute of the Armed Forces; l) ISP: Salvadoran Pension Institute; m) ISSS: Salvadoran Social Security Institute; n) SP Law: Comprehensive Pension System Law; (1) o) NIE: Legal Identification Number of the country of origin, which certifies the existence of foreign entities;

CNBCR-11/2022 NSP-64 TECHNICAL STANDARDS FOR THE TRANSFER OF PENSION INFORMATION Approval: 30/12/2022 Validity: 30/12/2022

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p) NIT: Tax Identification Number, in the case that the employer is a legal entity; q) INPEP Number: Number granted by the National Institute of Pensions of Public Employees to its affiliates, prior to the entry into force of the Law Creating the Salvadoran Pension Institute; r) PAS: Passport; s) SP: Pension System; t) SPP: Public Pension System; and u) Superintendence: Financial System Superintendence.

CHAPTER II ON THE TRANSFER OF INFORMATION

Information required from Pension Institutions Art. 4.- The Superintendence will send the technical details related to the mechanisms for sending the information requested in the Annexes that integrate these Norms, which will be communicated to the corresponding Pension Institutions, with a copy to the Central Bank, within a maximum period of one hundred and twenty days following the entry into force of these Norms. The aforementioned requirements in no case imply adding fields or modifying them. Pension Institutions must implement the necessary mechanisms for the transfer of information within a maximum period of thirty business days, counted from the date of having received the technical details from the Superintendence referred to in the first paragraph of this article.

Art. 5.- In the event that the Superintendence modifies the technical details for sending information, it will send them to the Pension Institutions, with a copy to the Central Bank. Pension Institutions must implement the necessary mechanisms for the transfer of information, within a maximum period of one hundred and twenty days after receiving the communication. The information requirements will be limited to the collection of information in accordance with what is regulated in these Norms.

Art. 6.- Pension Institutions must maintain a communication structure that maintains an uninterrupted connection for the transfer of information to the Superintendence. In the event of an interruption in the indicated connection that does not allow the timely transfer of information, they must have a contingency plan, as stipulated in the Technical Norms issued by the Norms Committee of the Central Bank regarding business continuity and information security.

Links Art. 7.- Pension Institutions must designate, at least, two persons

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responsible for sending the information to the Superintendence; these individuals will also serve as the links with the Superintendence to resolve errors, omissions, and irregularities.

Correction of information Art. 8.- In the event that there are errors in the information sent to the Superintendence, it may notify the Pension Institution to correct the deficiencies found. Pension Institutions will have a period of five business days counted from the day following the notification to correct the deficiencies or to present the documentation and information required by the Superintendence. Additionally, if the Institution becomes aware of the error, it must communicate it immediately and will have, as a maximum, the same period to correct it.

Extension of deadline Art. 9.- Pension Institutions may submit a request to the Superintendence for an extension of the deadline set in Article 8, stating the grounds for the request and proposing, if applicable, the relevant evidence.

CHAPTER III ON THE INFORMATION REQUIRED FROM PENSION INSTITUTIONS

Art. 10.- Pension Institutions will send to the Superintendence, files with pension information as detailed in Annex No. 1 of these Norms, regarding information on affiliates, benefits, payment of benefits, contributors, employers, and employer arrears; this information must be sent on a monthly basis. Additionally, actuarial information and Work History information must be sent semi-annually. (1) Regarding information requirements on Investments, they will be sent as per the Technical Norms for the Request of Information to Pension Fund Administrators for the control of Investments they carry out with resources from Pension Funds (NSP-41); and regarding the Solidarity Guarantee Account (NSP-44).

Art. 11.- For the control of the process of granting benefits of the System In order to follow up on the process of granting benefits, AFPs must send weekly to the Superintendence, files containing information on the status of benefit grant applications; notwithstanding the above, they may send files daily when data update is necessary.

CNBCR-11/2022 NSP-64 TECHNICAL STANDARDS FOR THE TRANSFER OF PENSION INFORMATION Approval: 30/12/2022 Validity: 30/12/2022

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The files must contain the most up-to-date information possible, in accordance with what is established in Annex No. 2 of these Norms.

CHAPTER IV ON THE INFORMATION REQUIRED FROM AFPs REGARDING FINANCIAL STATEMENTS

Art. 12.- The AFP will send monthly to the Superintendence, information on its financial statements, within the first seven days of the following month, in accordance with what is established in Executive Decree No. 18 dated 1998, which contains the Accounting Manual for Pension Fund Administrators (NSP-42).

Art. 13.- The AFP will send the financial statements referred to in the previous article of these Norms, in accordance with Annex No. 3 of these Norms, which includes the following: a) Balance Sheet; b) Income Statement; and c) Trial Balance.

Art. 14.- If there are errors in the information sent regarding the Financial Statements, the AFP must correct the information in accordance with the inconsistency file within the deadlines set in Article 8 of these Norms.

CHAPTER V ON THE INFORMATION REQUIRED FROM AFPs REGARDING OWNERSHIP AND ADMINISTRATION

Art. 15.- AFPs will send information on their ownership and administration, in order to reveal the shareholding participation in various companies of their shareholders and administrators, as well as that of their spouses and first-degree relatives by blood.

Art. 16.- The report referred to in the previous article of these Norms, will be sent quarterly at the latest on the first business day of the month following the close of each quarter, corresponding to March, June, September, and December of each year, and must contain the information described in Annex No. 4 of these Norms, as follows: a) File 1: Persons. In which the information relative to: i. Shareholders of the AFP, their spouses and first-degree relatives by blood, including minors. Information on shareholders that are legal entities will also be included;

CNBCR-11/2022 NSP-64 TECHNICAL STANDARDS FOR THE TRANSFER OF PENSION INFORMATION Approval: 30/12/2022 Validity: 30/12/2022

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ii. Administrators of the AFP, their spouses and first-degree relatives by blood, including minors, provided they hold shares in any company; and iii. Total shares of national or foreign companies where shareholders, whether natural or legal persons, and administrators of the AFP, their spouses and first-degree relatives by blood, have investments. In the event that any of the requested information does not apply, the corresponding field will be left blank. b) File 2: Companies. In this file, the information regarding the relative participation of shareholders, whether natural or legal persons, and administrators of the AFP, including their spouses and first-degree relatives by blood, in the capital of all companies where they have participation, must be detailed; c) File 3: Spouses and Relatives. Information relative to the spouses and first-degree relatives by blood of shareholders who are natural persons and of the administrators of the AFP will be detailed; and d) File 4: Administrators. It will contain information relative to the Administrators of the AFP, detailing the start date and end date of their duties.

Art. 17.- The electronic submission of numerical information will be required as follows: a) The NIT, NIE, PAS, and CMI numbers must be written without hyphens and without spaces; b) The names of shareholders and administrators, their spouses and first-degree relatives by blood, must be written in uppercase and without accents; and c) The relative participation must be reported with eight decimal places, without the corresponding percentage symbol, and the number of shares with whole numbers in general format.

Art. 18.- The AFP that fails to meet the delivery deadline of Article 16 of these Norms, must send the same day, a letter signed by the Executive Director, Executive President, or General Manager, and in their absence, by an authorized legal representative, in which the cause of the non-compliance is clearly explained and the way to solve the delay is presented.

Art. 19.- The quarterly report must be sent even if there are no changes or movements in the respective quarter.

Art. 20.- If there are errors in the information sent regarding ownership or administration, the AFP must correct the information in accordance with the inconsistency file within the deadlines set in Article 8 of these Norms.

Art. 21.- The AFP must keep in its administrative offices the supporting documentation of ownership and administration, as well as of the shareholding participation in

CNBCR-11/2022 NSP-64 TECHNICAL STANDARDS FOR THE TRANSFER OF PENSION INFORMATION Approval: 30/12/2022 Validity: 30/12/2022

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 31

different companies of its shareholders and administrators, their spouses and first-degree relatives by blood. In the event that any NIT is not found within the database that the Superintendence uses to verify the prohibitions established in the Pension System Law, it will be brought to the attention of the AFPs, who must send a legible copy, through the means and within the deadline that the Superintendence determines. The foregoing will also apply to cases of NIE.

CHAPTER VI OTHER PROVISIONS AND VALIDITY

Sanctions Art. 22.- Non-compliance with the provisions contained in these Norms will be sanctioned in accordance with what is stipulated in the Law on Supervision and Regulation of the Financial System.

Transitory Art. 23.- Pension Institutions will have a period of 90 days to make the corresponding adjustments related to the substitution of the Unique Pension Number by the Unique Identity Document Number in Systems, forms, or others where such change applies.

Repeals Art. 24.- These Norms repeal the Technical Standards for the Transfer of Pension Information (NSP-30) approved on December 11, 2019, by the Norms Committee of the Central Reserve Bank of El Salvador.

Unforeseen Aspects Art. 25.- Aspects not provided for in regulatory matters in these Norms will be resolved by the Central Bank through its Norms Committee.

Validity Art. 26.- These Norms will enter into force as of December 30, 2022.

MODIFICATIONS:

(1) Modification to articles 3, 10, and Annexes Nos. 1 and 2 approved by the Central Bank, through its Norms Committee, in Session No. CN-01/2023 of January 26, 2023, with validity from January 26, 2023.

CNBCR-11/2022 NSP-64 TECHNICAL STANDARDS FOR THE TRANSFER OF PENSION INFORMATION Approval: 30/12/2022 Validity: 30/12/2022

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ON THE INFORMATION REQUIRED FROM PENSION INSTITUTIONS

FILE 1: AFFILIATE INFORMATION

File Name: affiliate Structure: COLUMN NAME DESCRIPTION numero_documento Affiliation Number according to Pension Fund Administrator, Public Pension System Institute, or Social Security Institute of the Armed Forces. tipo_documento Code used to identify the type of document sent in the numero_documento column primer_nombre First Name of the affiliate according to identity document segundo_nombre From the Second Name of the Affiliate according to identity document primer_apellido First Surname of the affiliate according to identity document segundo_apellido Second Surname of the affiliate according to identity document apellido_casada Married Surname of the affiliate according to identity document conocido_por Known by the affiliate according to identity document fecha_nacimiento Date of birth of the affiliate according to identity document Genero Sex of the Affiliate estado_familiar Marital Status of the Affiliate Nia (1) Internal Affiliation Number of the claimant (1) dui Unique Identity Document of the Affiliate cip Personal Identity Card of the Affiliate carne_residente Resident Card of the Affiliate pasaporte Passport of the Affiliate carne_minoridad Minor's ID Card of the Affiliate isss Affiliation Number with ISSS inpep INPEP Number tipo_solicitud_afiliacion Type of Affiliation Request numero_solicitud_afiliacion Number of the Affiliation Request fecha_docum_afiliacion Date the affiliation request was filled out fecha_afiliacion Date the affiliate joined the Pension Institution estado_afiliado Status of the Affiliate fecha_fallecimiento Date of Death of the Affiliate according to death certificate

CNBCR-11/2022 NSP-64 TECHNICAL STANDARDS FOR THE TRANSFER OF PENSION INFORMATION Approval: 30/12/2022 Validity: 30/12/2022

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COLUMN NAME DESCRIPTION codigo_pais Country code corresponding to the nationality of the Affiliate tipo_sistema Code used to identify which system the affiliate is currently affiliated with tipo_afiliado Code used to identify which group the Affiliate belongs to

FILE 2: BENEFIT INFORMATION File Name: benefit Structure: COLUMN NAME DESCRIPTION numero_documento Affiliation Number of the Claimant tipo_documento Code used to identify the type of document of the Claimant sent in the numero_documento column codigo_beneficiario Code assigned by the Pension Institution to the beneficiary for the payment of the benefit tipo_beneficio Corresponds to the concept of the benefit granted Numero_documento_beneficiario (1) Identification document number of the beneficiary (1) Tipo_documento_beneficiario (1) Code indicating the type of document sent in the numero_documento_beneficiario (1) column primer_nombre First Name of the beneficiary according to identity document segundo_nombre From the Second Name of the beneficiary according to identity document primer_apellido First Surname of the beneficiary according to identity document segundo_apellido Second Surname of the beneficiary according to identity document apellido_casada Married Surname of the beneficiary according to identity document genero Sex of the beneficiary fecha_nacimiento Date of birth of the beneficiary parentesco_relacion Kinship or relationship of the beneficiary, with respect to the claimant affiliate numero_solicitud Number of the benefit request numero_expediente Case file number fecha_solicitud Date of the benefit request requisito_legal Legal requirement fulfilled to grant the benefit saldo_ciap For pensioners of the SP, the total balance of the claimant's account fecha_otorgamiento Date on which the benefit payment is made, in the case of pensions when payment begins

CNBCR-11/2022 NSP-64 TECHNICAL STANDARDS FOR THE TRANSFER OF PENSION INFORMATION Approval: 30/12/2022 Validity: 30/12/2022

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COLUMN NAME DESCRIPTION fecha_inicio_devengue Date from which the pension benefit is recognized monto_pension_mensual Calculated amount of the pension to be paid monthly monto_total_devolucion_asignacion Total Amount to be returned in concept of return/assignment tiempo_cotizado Time contributed associated with the granting of the benefit pension_calculada Calculated monthly pension amount, without adjustments garantía_de_pension_minima Specify if the affiliate meets contribution requirements to apply for minimum pension pension_de_longevidad Specify if the affiliate meets requirements for longevity pension pension_sin_hacienda Monthly pension amount excluding the complement charged to the Ministry of Finance monto_pension_hacienda Amount of the monthly pension complement to pay minimum pension, charged to the Ministry of Finance sbr (1) Regulated Basic Salary for each of the pensions generated (old age, disability, and survivorship) (1) pensión_referencia (1) Amount of the reference pensions on which the disability and survivorship pensions have been determined. (1)

FILE 3: BENEFIT PAYMENT INFORMATION File Name: benefit_payment Structure:

COLUMN NAME DESCRIPTION numero_documento Affiliation Number of A