Teodoro Tejada advocates for investing pension funds in productive sectors to ensure profitability
Engineer Teodoro Tejada, former president of the Dominican College of Engineers, Architects and Surveyors (CODIA), spoke in favor of channeling pension funds in the Dominican Republic into various productive sectors of the country. According to the expert, this strategy is fundamental to ensuring a real and effective return on workers’ savings.
Tejada emphasized the importance of complying with the current legal framework, specifically Article 96 of Law 87-01, which establishes the guidelines under which Pension Fund Administrators (AFP) must manage accumulated capital.
We are in favor of the application and implementation of Article 96 of Law 87-01, which creates the Dominican Social Security System, which establishes the main objective under which the AFPs must manage and invest workers’ savings, in order to have real profitability.
Teodoro Tejada, former president of CODIA
Sectors with the highest investment potential
For the engineer, the construction sector stands as one of the areas with the greatest dynamism and capacity to contribute to the Gross Domestic Product (GDP). However, he pointed out that the range of possibilities for these investments should be broader, encompassing key sectors of the national economy such as:
- The service sector.
- The national industry.
- The agricultural sector.
Concern for members’ rights
Tejada also expressed his concern regarding current regulations affecting late-entry workers. The specialist questioned a resolution from the Superintendence of Pensions (SIPEN) that prevents affiliates who entered the system at age 45 or older from withdrawing their total accumulated savings upon reaching age 60.
In the opinion of the former president of CODIA, the imposition of negligible monthly quotas, instead of allowing the full withdrawal of capital, represents a violation of the property rights and human dignity of Dominican workers, an issue that, as he states, has been ignored in the studies conducted to date on the use of these funds.
