BIESS Returns 35 of 37 Closed Complementary Pension Funds to Original Administrators

BIESS has returned most closed complementary pension funds under transition to their original administrators.

El Universo reports that the Banco del Instituto Ecuatoriano de Seguridad Social (BIESS) restored administration of 35 of 37 closed complementary pension funds, or FCPC, to their legitimate administrators.

The process was carried out under the Ley de Fortalecimiento y Sostenibilidad Crediticia and regulation from the Junta de Politica y Regulacion Financiera y Monetaria, according to the report.

Transition Outcome

Category	Funds
Total FCPC under transition	37
Returned to original administrators	35
Chose continued operation	26
Could not complete transition among continuing funds	2
Chose voluntary liquidation	9
Chose merger	2

El Universo reports that BIESS returned more than 94% of the closed complementary pension funds to their original administrators.

Since 2015, about 70 private funds moved under BIESS administration because of political decisions, according to the institution cited by El Universo.

BIESS said that increased its administrative load and generated costs above $500,000, diverting resources that should have focused on social security and credit access for affiliates and retirees.

Regulatory Context

The process was supervised by the Junta de Politica y Regulacion Financiera y Monetaria and the Superintendencia de Bancos, according to El Universo.

The article describes FCPCs as private savings pension entities created by worker collectives to improve retirement and severance benefits.

What To Watch

• Final resolutions from the Superintendencia de Bancos for funds pending liquidation or merger.
• Whether BIESS recovers administrative costs tied to prior fund management.
• Any change in BIESS operating expense or credit-allocation capacity after the transition.
• Governance standards adopted by the returned FCPC administrators.

Source: El Universo