COMPLETELY OBLIGATORY

Costa Rica 2018 | FINANCE | COLUMN

TBY talks to Roger Porras Executive Director, JUPEMA, on the sector.

Roger Porras

How important are pensions for educators?

JUPEMA administers the pension funds of the education sector. For educators, it is completely obligatory to be a part of JUPEMA. All Costa Rican educators get their pension by JUPEMA, with the exception of private university teachers. Costa Rica has a multi-pillar pension system where the first pillar is a basic pension substitute for salary. The pension regime has an administrator, which is JUPEMA for public educators, IVM for Costa Rican Social Security, and another for the judicial branch.

How do you invest depositor funds?

Investing wisely is fundamental to paying pensions. We invest resources in all valid available investment vehicles in Costa Rica. For example, we invest in securities or investment bonds issued by the treasury or the Central Bank. We can also invest in financial instruments generated by trusts. We can invest in banking and investment funds, whether real estate or not. We also have a loan service, though only open to the people of the national magisterium. Currently, loans constitute 13% of our income, and our investment portfolio represents 5% of Costa Rican GDP.