Pension
Bolivia established a comprehensive pension system in 2010, designed to provide retirement benefits to a wide range of its citizens. This system is comprised of 3 regimes:
- Contributory Regime: This regime is funded by contributions from both employees and employers. It offers a variety of benefits, including old-age pensions, disability benefits, and survivor benefits. To qualify for old-age benefits, individuals must meet specific age and contribution requirements. The amount of the pension is determined by the individual's accumulated savings and the number of years of contributions.
- Semi-Contributory Regime: This regime is designed to provide additional protection to low-income employees. To be eligible for solidarity benefit, the insured must be at least 58 years of age, and must have paid contributions for at least 120 months, but not long enough to be eligible for long-term social security contributory pension. Benefits under this regime are typically lower than those under the contributory regime.
- Universal Non-Contributory Regime: This regime provides a basic income, known as the Dignity Income, to elderly individuals who do not qualify for benefits under the other two regimes. The amount of pension is BOB 4,550 (Bolivian Boliviano) per year for those who do not receive any other pension, and BOB 3,900 per year for those who receive pension.
Dependents/Survivors Benefits
The Bolivian Comprehensive Pension System provides death benefits to surviving beneficiaries of insured members. First-degree beneficiaries include spouses and children who have priority and receive both life and temporary pensions. Second-degree beneficiaries, like parents and minor siblings, are also eligible for benefits without explicit declaration by the insured. Third-degree beneficiaries, who are freely declared by the insured, can only access the accumulated balance.
In case of death due to common risk, the deceased insured must meet specific age and contribution requirements. The pension amount is calculated based on a percentage of their salary risk reference. For deaths due to occupational risk, the deceased dependent must have been under 65, and the death must occur during or shortly after employment. The pension amount, in this case, is based on 100% of the deceased's salary risk reference. Both types of death benefits include coverage for funeral expenses.
Invalidity Benefits
Insured employees in Bolivia's Comprehensive Pension System are eligible for disability benefits if they become temporarily or permanently disabled resulting from either common risks or occupational risks.
The disability benefit for common risk is granted in the event of partial disability or permanent total disability due to an accident and/or illness not arising from occupational risk. To be eligible for disability benefits, insured employees must meet the following criteria: they must be under 65 years of age, have at least 60 paid contributions to the Distribution System, Mandatory Long-Term Social Security, or Comprehensive Pension System, and experience a disability while premiums are being paid or within a year of their cessation. Additionally, the degree of disability must exceed 50%. The pension amount for the insured is determined based on their disability grade and Risk Salary Reference.
Disability benefits for occupational risks are provided for partial or permanent total disability, provided the insured is under 65, have a disability degree exceeding 10% due to professional causes, and being employed at the time of the occupational accident or within a year of leaving employment in case of occupational disease. The pension or compensation amount is determined by the disability grade and Risk Salary Reference, with 100% pension for 60% or higher disability, a calculated pension for 25-60% disability, and a one-time compensation for 10-25% disability.