Technical Standards for the Transfer of Voluntary Contributions from Pension Fund Administrators to an Institution Administering Voluntary Previsional Savings Funds

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TECHNICAL STANDARDS FOR THE TRANSFER OF VOLUNTARY CONTRIBUTIONS FROM PENSION FUND ADMINISTRATORS TO AN INSTITUTION ADMINISTERING VOLUNTARY PREVISIONAL SAVINGS FUNDS

Approval: 30/12/2022 Validity: 30/12/2022

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, of the 21st of the same month and year, the Comprehensive Pension System Law was issued. II. That Article 17 of the Comprehensive Pension System Law establishes that in case of voluntary contributions existing, these shall be returned to the affiliate including their respective profitability, when requested by the latter within a maximum period of five business days from the date of the request. III. That Article 133 of the Comprehensive Pension System Law establishes that Voluntary Previsional Savings Funds shall be offered by Pension Fund Administrators, Banks, Cooperative Banks, Fund Managers and Savings and Credit Companies, in accordance with the regulations applicable to them, and shall be governed by the provisions of the aforementioned Law, and in their case by the Investment Funds Law. IV. 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 aforementioned Law.

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 TRANSFER OF VOLUNTARY CONTRIBUTIONS FROM THE PENSION FUND ADMINISTRATORS TO AN INSTITUTION ADMINISTERING VOLUNTARY PREVISIONAL SAVINGS FUNDS

CHAPTER I OBJECTIVE, SUBJECTS AND TERMS

Objective Art. 1.- These Standards aim to establish provisions that allow Pension Fund Administrators to transfer in an orderly and timely manner, the voluntary contributions and deposits of their affiliates along with the profitability that

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Subjects Art. 2.- The subjects obliged to comply with the provisions established in these Norms are the Pension Fund Administrators and the financial entities authorized by the Superintendence of the Financial System to offer Voluntary Previsional Savings Funds to which the affiliate wishes to transfer their voluntary contributions and deposits along with the respective profitability.

Terms Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning: a) Affiliate: Any person who maintains a relationship with a Pension Fund Administrator, through the signing of an affiliation contract; b) AFP: Pension Fund Administrators; c) CIAP: Individual Savings Account for Pensions; d) Voluntary Contribution(s) and deposit(s): Additional contributions made by the affiliate and/or additional deposits made by the employer, to the CIAP, with the objective of increasing the balances in said account, for the purpose of increasing the amount of the pension; e) Individual account: Voluntary individual previsionary savings account in the name of a natural person, which contains the data of the deposits, transfers and withdrawals made by natural persons or by the employer if applicable and the returns generated by said contributions; f) FAPV: Voluntary Previsional Savings Fund, is the set of individual voluntary previsionary savings accounts; g) FAPV Administrator Institution: Financial institution that offers FAPVs, the which are recorded in the Public Registry of the Superintendence of the Financial System; h) SAP Law: Savings System for Pensions Law, repealed by Legislative Decree No. 614, of December 20, 2022, published in the Official Journal No. 241, Volume No. 437, of December 21 of the same year; i) Participant: Natural person in whose name the individual account of voluntary previsionary savings is located; j) Prospectus: Corresponds to the instrument that contains the characteristics of each FAPV, as well as the description of its operation; and k) Superintendence: Superintendence of the Financial System.

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CHAPTER II OF THE PROCESS

Art. 4.- Those resources that an affiliate has accumulated in their CIAP, in the concept of voluntary contributions and deposits along with the profitability they have generated, may be transferred, in total or partial, to a FAPV, prior authorization of the affiliate, without generating any type of tax or commission. Art. 5.- The AFPs will make available to their affiliates, through electronic channels, digital media or any other technological means, in their agencies or through their previsional agents, information on the process to be followed for the transfer of contributions and voluntary deposits from the CIAP to a FAPV.

Of the procedures to be carried out at the FAPV Administrator Institution Art. 6.- For the purpose of carrying out the transfer of voluntary contributions and deposits to a FAPV, affiliates must carry out the following procedure: a) The affiliate must link to one or more FAPVs, by signing the respective contract, compliance with the Authorization, Registration and Operation of Voluntary Previsional Savings Funds (NSP-59), approved by the Central Bank, through its Norms Committee; and b) Once the link to a FAPV is firm, the corresponding Administrator Institution must deliver to the affiliate a physical or electronic receipt with the information established in Annex No. 1 of these Standards. In cases where the affiliate is linked to one or more FAPVs, the corresponding FAPV Administrator Institution will be responsible for requesting the detailed receipt mentioned in Annex No. 1 of these Standards.

Of the procedures to be carried out at the AFP Art. 7.- The AFPs must keep available to the affiliate the request form for the transfer of voluntary contributions and deposits, in accordance with what is established in Annex No. 2 of these Standards. Art. 8.- The AFP must deliver to the affiliate, by physical and/or electronic means, the detail of the accumulated voluntary contributions and deposits and the profitability generated at the current share value on the date of issuance, for the purpose that the affiliate decides the type of transfer to be carried out, any of the following situations being able to occur: a) That the affiliate transfers the total of the voluntary contributions and deposits and the generated profitability; or

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On the transfer of resources Art. 9.- The AFPs must pay by electronic transfer to each FAPV Administrator Institution, the amount indicated in the transfer request valued on the date of the transfer, which will be made on the third business day after the date of the request. Art. 10.- Once the transfer of resources is firm, the AFP must notify the affiliate, the next business day, the information related to: the amount transferred, account number to which the transfer was made, request number related to the transfer process and date of transfer. Likewise, within a maximum period of seven days, the AFP will provide by the means they have agreed upon a settlement or partial transfer receipt, which will contain at least the following: a) Date of resource transfer; b) Amount transferred in the concept of voluntary contributions and deposits with its respective profitability; c) Remaining amount in the concept of voluntary contributions and deposits in the cases where the transfer has been partial; and d) Final balance of the CIAP and its equivalent in shares. Art. 11.- The FAPV Administrator Institution must send to the participant, by the means they have agreed upon, a receipt of the receipt of the resources, detailing the following: a) Date of the transaction; b) Account number in the FAPV; c) Name of the FAPV; d) Name of the participant; and e) Amount transferred and its equivalent in participations.

Of the accounting record of transfers Art. 12.- For the purpose of recognizing the obligation for transfers of voluntary contributions and deposits, the AFPs must use the corresponding accounts of

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Of the impropriety and interruption of the transfer Art. 13.- The transfer of resources will be improper when the affiliate has presented a request to cancel the contract with the AFP or that, the Superintendence declares the aforementioned contract void. For this, it will be the responsibility of the AFP, to verify such a situation at the moment the affiliate initiates the transfer procedure. Art. 14.- If after the signing of the transfer request and before the transfer of resources, the AFP has knowledge that the affiliate has died, it must inform of such a situation to the FAPV Administrator Institution and the transfer will become void. Art. 15.- The affiliate, within a maximum period of two business days, counted from the day following the signing of the request for transfer of voluntary contributions and deposits, can withdraw from this, for which they must manifest it to the AFP, by the physical or electronic means that it makes available, which must contain the minimum information detailed in Annex No. 3.

Of the voluntary contributions and deposits not transferred to a FAPV Art. 16.- When an affiliate from the group established in Article 184 of the SAP Law accesses a benefit for old age and has voluntary contributions and deposits in their CIAP, these can be withdrawn by the affiliate along with the profitability generated after complying with the respective requirements, and will not be counted for the purpose of the calculation of the pension. Art. 17.- With respect to an affiliate from the group established in Article 185 of the SAP Law who accesses a benefit for old age and has voluntary contributions and deposits in their CIAP, may opt to dispose of these -43), approved by the Central Bank through its Norms Committee. Art. 18.- In case of accessing a survivorship pension benefit for affiliates of the groups described in Articles 16 and 17 of these Standards, the AFPs may proceed with the return of the amount of voluntary contributions and deposits with its respective profitability, according to the percentages described in Article 112 of the Law Comprehensive Pension System.

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CHAPTER III OF THE REQUESTS

Art. 19.- The requests for transfer of voluntary contributions and deposits will have correlative unique numbering for each AFP and a physical or electronic receipt will be generated for the affiliate with the correlative number of the process, as the case may be. Art. 20.- In the case that the request is filled out by non-electronic written means, the drafts, amendments, strikethroughs and any other corrections, must have been saved and the signatures that endorse them must appear immediately after; otherwise, the request will not be valid. Art. 21.- The request for transfer of voluntary contributions and deposits must contain at least the information detailed in Annex No. 2 of these Standards. A copy of the identity document presented by the affiliate will be attached to the request.

CHAPTER IV OTHER PROVISIONS AND VALIDITY

Information Transfer Art. 22.- The AFP must send daily to the corresponding FAPV Administrator Institution, through electronic files, the information detailed in Annex No. 4 of these Standards, regarding the following: a) Detail of the affiliates who requested the transfer procedure; and b) Detail of the affiliates who requested the cancellation of the transfer procedure. In addition, the FAPV Administrator Institution must send to the corresponding AFP, the file containing the detail of Confirmation of Transfer of voluntary contributions and deposits received, according to Annex No. 4 of these Standards. The files referred to in this article may be of the type that the AFPs and the FAPV Administrator Institutions have previously agreed upon. Art. 23.- All information that the AFPs transfer to the FAPV Administrator Institutions by documentary and/or magnetic means, must be sent through a detailed manifest, which must be stamped and signed by the person responsible for the AFP. In the case of electronic transfers, the AFPs must establish the method of sending and acknowledgment of receipt.

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Special Considerations Art. 24.- The following special considerations must be attended to: a) If the affiliate suffers from any physical disability condition that prevents them from going to the AFP to sign the transfer request, a proxy signer may do so, for which they must present an authorization signed by the affiliate and notarized, which must be accompanied by a medical certificate or disability report and a copy of the identity document of the authorized person; b) In case the affiliate loses the receipt referred to in Article 6 of these Standards, they may request a copy of it from the FAPV Administrator Institution; c) The AFP must perform prior validations of all resources to be transferred in the concept of voluntary contributions and deposits, for the purpose of carrying out the compensation of these; and in any case, if the FAPV Administrator Institution receives resources erroneously in the concept of transfer of voluntary contributions and deposits, it must reverse the operation no later than the next business day of having detected it or being notified of the error by the AFP; and d) The transfers of voluntary contributions and deposits, adjustments and reversals corresponding, will be identified in the Statements of Individual Savings Accounts for Pensions, with the movement codes described in Annex No. 5.

Sanctions Art. 25.- 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.

Repeal Art. 26.- Technical Standards for the Transfer of Voluntary Contributions from Pension Fund Administrator Institutions to (NSP-33) approved by the Central Bank through its Norms Committee, in Session CN-07/2020, of April 14, 2020.

Unforeseen Aspects Art. 27.- The aspects not provided for in regulatory matters in these Standards, will be resolved by the Central Bank through its Norms Committee.

Validity Art. 28.- These Standards will enter into force from the thirtieth of December of two thousand twenty-two.

Annex No. 1 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 8 of 14 CNBCR-11/2022 NSP-67 TECHNICAL STANDARDS FOR THE TRANSFER OF VOLUNTARY CONTRIBUTIONS FROM PENSION FUND ADMINISTRATORS TO AN INSTITUTION ADMINISTERING VOLUNTARY PREVISIONAL SAVINGS FUNDS Approval: 30/12/2022 Validity: 30/12/2022

FORMAT OF THE RECEIPT OF REGISTRATION OF AN INDIVIDUAL ACCOUNT IN A VOLUNTARY PREVISIONAL SAVINGS FUND Receipt Number Logo of the FAPV Administrator Institution Name of the FAPV Administrator Institution San Salvador, ________ of _______ of ________. This receipt is issued to ________________________________________________________ (Name of the Participant), with Identification Document Type ___, No., who is a participant of the FAPV named __________________. The resources must be credited to bank account No. _______________ in the name of the Voluntary Previsional Savings Fund ________________________________________ in the financial entity __________________.

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Name and signature of the person authorized to carry out the procedure at the FAPV Administrator Institution and the respective institutional seal

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MINIMUM CONTENT OF THE TRANSFER REQUEST FORM FOR VOLUNTARY CONTRIBUTIONS AND DEPOSITS TO A FAPV ADMINISTRATOR INSTITUTION Transfer Request The part corresponding to the Transfer Request for voluntary contributions must contain the following elements: a) ; b) Request number; c) Information regarding whether the affiliate will carry out a Total or Partial transfer of the resources; in case the affiliate opts to transfer a part of the amount accumulated in the concept of voluntary contributions and deposits, as well as the generated profitability, they must manifest their interest in keeping the remaining amount as part of their CIAP with the possibility of carrying out a subsequent transfer; d) Amount to be transferred; e) The phrase that establishes the affiliate's decision to transfer totally or partially the resources accumulated in the concept of voluntary contributions and deposits and the profitability generated by e ___________ (name of the affiliate) with Identification Document Type __________________ No.________________ with validity until ____________, I request to transfer the resources accumulated in the concept of Voluntary Contributions and Deposits to the Institution Administrator ____________________ (name of the Institution FAPV Administrator Institution ; f) Name of the fund to which the resources will be transferred in the Institution Administrator, according to the physical or electronic receipt presented; g) The date of the request for transfer of resources to the FAPV Administrator Institution, with ; h) Signature of the affiliate in physical requests. In cases where the procedure is carried out through electronic channels, the authentication of the affiliate will be necessary, according to the form in which the AFP establishes it; and i) Name, signature and position of the person carrying out the procedure on behalf of the AFP and seal of the AFP, in cases where the procedure is carried out in an Agency.

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FORMAT REQUEST FOR CANCELLATION OF TRANSFER PROCEDURE FOR VOLUNTARY CONTRIBUTIONS AND DEPOSITS San Salvador, ________ of _______ of ________. I, __________________________________________________________, with type of Identification Document __________________ No. _______________ with validity until __________________, affiliate to AFP _______________, by this means I manifest my intention to not continue with the transfer procedure of voluntary contributions and deposits to the FAPV Administrator Institution __________________, with request number ______________.

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Signature or authentication of the affiliate, as applicable

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Signature of the affiliate Signature

Annex No. 4 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 11 of 14 CNBCR-11/2020 NSP-67 TECHNICAL STANDARDS FOR THE TRANSFER OF VOLUNTARY CONTRIBUTIONS FROM PENSION FUND ADMINISTRATORS TO AN INSTITUTION ADMINISTERING VOLUNTARY PREVISIONAL SAVINGS FUNDS Approval: 30/12/2022 Validity: 30/12/2022

ELECTRONIC INFORMATION EXCHANGE

TRANSFER REQUEST FILE FOR VOLUNTARY CONTRIBUTIONS AND DEPOSITS Through this file, the AFP will inform the Institu