Pension
The labor laws in the Dominican Republic provide that employees are entitled to an old-age pension (pensión por vejez) when they meet the following criteria:
- The employee is 60 years old and has a minimum of 360 months (30 years) of contributions.
- The employee has ceased all gainful activity.
If the account balance is sufficient to finance the minimum monthly old-age pension, the insured has 2 payment options: purchase a price-indexed annuity or make programmed withdrawals. If the account balance is insufficient, a lump sum of the account balance is paid.
Dependents/Survivors Benefits
To qualify for a survivors pension (pensión por sobrevivencia), the deceased must have received or been entitled to receive an old-age or disability pension at the time of death.
Eligible survivors include a widow(er) or partner and unmarried children younger than age 18 (age 21 if a full-time student, no age limit if disabled).
A survivors pension is worth 60% of the deceased's average indexed covered earnings in the last 3 years. Life insurance tops up the deceased's individual account if the balance is less than the required minimum to finance the survivors pension.
Invalidity Benefits
To qualify for a disability pension (pensión por discapacidad), the insured individual must have at least a 66.7% assessed loss of earning capacity and have exhausted sickness benefits. The disability must be the result of a chronic illness or non-work-related accident.
Insured persons who qualify for a disability pension will receive 60% of their average indexed covered earnings in the three years immediately before the disability began. The disability pension is financed by the disability insurance provided by an insurance company until retirement or death. The insurance company also pays a monthly contribution to the insured's individual account until retirement or death.
The eligibility for occupational injury disability benefits must be assessed with a work injury or occupational disease (a medical board determines the degree of disability). Accidents that occur during the commute to and from work are also covered.