Dominican Republic: Progress and challenges in implementing the non-contributory pension system

In 2001, the Dominican Republic pension system underwent a structural reform to replace the old pay-as-you-go system with an individually funded system managed by the private sector. This process entailed transitioning from a system that only covered certain central government workers and private employees, subject to a wage ceiling, to one without such restrictions. The changes introduced by Act No. 87-01 also included the creation of two additional regimes: the subsidized contributory regime, which has not yet been implemented, and the subsidized regime, which began operating through a pilot programme in 2019 after regulations had been approved in 2013. The entitlements of this regime are currently in a phase of consolidation.

Sustainable Development Goals:

No Poverty

Decent Work and Economic Growth

Reduced Inequalities