77% of Costa Rica state Pension Investment Fund are in bonds, whose finances in 2013 have a deficit of 5% of GDP.
Nacion.com reports that the Pensions Superintendency (SUPEN) has warned about the situation, noting that "the high background concentration of Disability, Old Age and Death (IVM) funds in a single issuer is a risk factor."
Authorities announced works to reinforce the structure of the Social Security Department building and the modernization of its mechanical and electrical systems.
The Disability, Old Age and Death regime ('Invalidez, Vejez y Muerte' or IVM in Spanish) will be the entity financing the refurbishment of the Laureano Echandi building, which houses the current headquarters of the Social Security Department (CCSS by its initials in Spanish).
The operations of the supervisory agencies for financial institutions, pensions companies, the stock market, and insurance market, has an annual cost of $48 million.
The government of Costa Rica is trying to organize it so that the institutions regulated by these superintendents, assume a greater share of these costs, 80% of which so far are paid by the Central Bank.
The Costa Rican government intends to launch a project to reform the law governing the securities market, starting by decreeing it of public interest.
The decree of public interest in the stock market will be created by the National Council for the Development of the Securities Market, which will be integrated with public sector representatives - including the Central Bank, Ministry of Finance, Conessif, the Superintendency of Securities and Pension-and private enterprise.
The Superintendency of Pensions is studying changing the rules for the transfer of members between companies, to reduce administrative costs.
The rate of transfer of members between pension operators (OPC) in Costa Rica is the highest in Latin America. In Mexico, Chile, Peru, Panama and Uruguay, the rate is less than 6%, while in Costa Rica it is 12%.
While the board of the Social Security Department ensures it is in good health until 2027, the Superintendency of Pensions is warning that it is already generating deficits.
In order to defend their positions, both the Social Security Department (CCSS in Spanish) and the Superintendency of Pensions (SUPEN) have put forward their own actuarial studies, which report results that are openly opposite.
The current Pensions Superintendent, Javier Cascante, will also be the new Insurance Superintendent.
He will take office on January 1st, 2010, for a 5 year term.
"Javier Santiago Cascante Elizondo is 41 years old; he has an Economics Degree from the University of Costa Rica and a Master's Degree from the Catholic University of Chile", reported Elfinancierocr.com. "He took office as Pensions superintendent in 2002, and was re-elected in 2007 for another 5 year term".
The Panamanian Aseguradores Association (APADEA), is a non-profit organisation, that was created in 1952 with the objective of developing, enlarging and coordinating the activity of the insurance market throughout Panama.
Operates in Panama
Phone: (507) 225-4445