Pension Fund Administrators

The Pension Fund Administrators (AFAP) are joint-stock companies with nominative stocks which have as its exclusive object the administration of a sole Pension Fund, property of the members associated to the system.

Rules regulating AFAPs. AFAPs are regulated by Law N° 16.713 dated September 3rd, 1995, decree N° 399/95 dated November 8th, 1995, the Resolutions of the BCU (Central Bank) (circulars and communications), and in subsidiary form, by all those regulations not provided for in the preceding rules and in asmuch as it is compatible with the new pensions system, by Law 16.060 dated September 4th, 1989. Law N° 16.713 established a new mixed pensions system that combines the Banco de Previsión Social (Social Security Bank) allotment system (intergenerational solidarity) with the individual saving system administered by the AFAPs.

Market. At present, the AFAPs Market in Uruguay is distributed among four administrators: Afinidad, Integración, República and Union-Capital, being República AFAP the administrator with the largest number of affiliated members and the one that concentrates more than half of the administered funds.

Fund. Most of the pension saving funds are invested in State values. Among these, the investments in global bonds stand out. In second place, in the investment portfolio are the values issued by the Banco Hipotecario del Uruguay and the letters of monetary regulation issued by the Central Bank of Uruguay. The remaining investments are distributed among the temporary assets, time deposits in financial institutions, assets issued by public or private companies and investments in public institutions for personal loans to affiliated members.

Our answers for the AFAPs are developed from the following services:

• Business advice
• Companies reengineering
• Information Technology and Security
• Internal Audit
• External Audit
• Taxes
• Personnel Selection