NewsWhore
03-08-2010, 01:20 PM
Business representatives said they do not object the appointment of a politician to head the Superintendence of Pensions (SIPEN), as is the case of Joaquin Geronimo, as reported in El Caribe. He replaced former Banco Popular banker, Persia Alvarez. The newspaper says that they do warn that they will be monitoring developments to avoid that the entity be politicized. In its 6th year, the pension fund reached RD$94 billion at the end of 2009.
Business spokesmen have expressed their concern and urged that the new director comply with the norms that guarantee the investment of the pension funds.
The big winner regarding the pension funds so far has been big business. Clave newspaper in its 4 March issue said that the managers of the funds have received RD$3.47 billion for their service, while the real historic yield of the funds has been only 1.9%.
The newspaper says that the Dominican pension plan companies have reaped a yield of 30%, compared to an average of 10% in other Latin American countries.
Five companies manage the pension plans - Popular (32%), governmental Reservas (14%), Scotia Crecer (32%), Siembra (22%) and Romana (1%). These companies have reported profits of RD$1.38 billion for their handling the funds.
The AFP Popular alone received RD$436 million in profits, or 55% of its patrimony.
As of 31 December 2009, 39.81% of the pension fund money was invested in Central Bank certificates, 34.18% in certificates of deposits in commercial banks, 10.86% in loans and savings banks, among other entities.
The government has announced interest in using the funds to build housing.
Bienvenido Martinez, new director of the National Social Security Council recently authorized the pension plans to invest up to RD$15 billion in government bonds. The Ministry of Hacienda will supervise this bonds program.
More... (http://www.dr1.com/index.html#7)
Business spokesmen have expressed their concern and urged that the new director comply with the norms that guarantee the investment of the pension funds.
The big winner regarding the pension funds so far has been big business. Clave newspaper in its 4 March issue said that the managers of the funds have received RD$3.47 billion for their service, while the real historic yield of the funds has been only 1.9%.
The newspaper says that the Dominican pension plan companies have reaped a yield of 30%, compared to an average of 10% in other Latin American countries.
Five companies manage the pension plans - Popular (32%), governmental Reservas (14%), Scotia Crecer (32%), Siembra (22%) and Romana (1%). These companies have reported profits of RD$1.38 billion for their handling the funds.
The AFP Popular alone received RD$436 million in profits, or 55% of its patrimony.
As of 31 December 2009, 39.81% of the pension fund money was invested in Central Bank certificates, 34.18% in certificates of deposits in commercial banks, 10.86% in loans and savings banks, among other entities.
The government has announced interest in using the funds to build housing.
Bienvenido Martinez, new director of the National Social Security Council recently authorized the pension plans to invest up to RD$15 billion in government bonds. The Ministry of Hacienda will supervise this bonds program.
More... (http://www.dr1.com/index.html#7)