Capital and Income from Costa Rican Pension Funds

Up until June this year, statutory and complementary pensions amounted to $3.71 billion, surpassing basic pension regimes which had $3.61 billion.

Wednesday, July 17, 2013

The profits that this system has accrued are due to the fact that the investments of the administered fund had returns of around 20% between June 2012 and December 2013. In this way this system became the largest in terms of the amount of resources.

"The total balance managed by operators is $5 billion (including the Labor Capitalization Fund and voluntary pensions) this means that through performance an extra $1 billion has been made," said Edgar Robles, Superintendent of Pensions.

However, Robles said that maintaining this trend will depend on the next investments made by the operators. "Most of the resources of the statutory pension scheme (65%) are concentrated in government bonds and those of the Central Bank, the private sector follows with 13%, according to data from the first half of the year. This last segment had a decline compared to the same period in 2012," noted an article in Nacion.com.



More on this topic

Costa Rica: $7 billion Poorly Used

January 2014

While essential infrastructure projects lack funding, the capital accumulated in pension funds only serves as a source of funding for state coffers.

In a country where the need for funds for projects that promote economic development is increasing, the resources managed by pension operators have to be invested in obsolete investment schemes, ensuring only low returns for contributors.

Governments That Devour Pension Savings

April 2012

With different modus operandi, the governments of Costa Rica and El Salvador are degrading the future value of workers' savings deposited with Pension Operators.

EDITORIAL

In the case of Costa Rica it is the voracity with which the Treasury has to go to the stock market in order to raise money to pay for increased spending, especially on staff salaries, leading to low yields on government bonds, which in an obligatory manner make up the portfolio of the Supplementary Pension Operators (PCO), assets which are supposed to safeguard the future value of pensions.

Pension Schemes Returns in Costa Rica

February 2012

Carteras de inversión similares hacen que las diferencias de los rendimientos de los distintos planes de pensión complementaria sean mínimas.

Los rendimientos de los planes de pensión complementaria en Costa Rica muestran diferencias mínimas y están convergiendo en un rango de 4,29% y 5,25%.

Changes to Pension Operators Costa Rica

December 2011

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%.

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