American Expatriate Costa Rica

Profitability of pension funds had a downward trend at the end of 2016

The profitability of the Compulsory Pension Scheme (ROPC) saw the end of the year with a downward trend, according to figures published by the Superintendence of Pensions (SUPEN).

According to statistics of last November, six funds managed by pension operators in the country showed a downward trend since April and remained the same for the rest of the year.

At the beginning of the year, the real annual yield ranged from 10.41% to 14.91%. In November, however, the margin ranged from 6.61% to 9.22%.

Real profitability excludes inflation, which by 2016 was very close to 1%, which would be very similar to nominal profitability.

Traditionally, SUPEN has estimated that a nominal yield above 6% is considered healthy for the industry. Therefore, all entities comply with this requirement.

The fall would then be linked to the downward trend of interest rates during the year.

In Costa Rica there are only six entities authorized to administer supplementary pension funds: BAC Pensiones, BCR Pensiones, BN Vital, CCSS OPC, Popular Pensiones and Vida Plena. The ROPC was created by the Worker Protection Act, in force since 2000.

crhoy.com