The Social Security Institute has released a simulator to help individuals determine the potential monthly supplement to their pension if they enroll in the Public Capitalization Scheme.
“The Social Security Institute has made available a simulator to provide an estimate of the monthly supplement to your pension, based on the chosen contribution rate,” stated the organization in a post on the social media platform Instagram.
Steps to Follow
The Social Security advises, “To join the Retirement Certificates or carry out the simulation, access the Social Security Portal, select the Work menu > Retirement and Disability > Public Capitalization Scheme – Retirement Certificates.”
The “Public Capitalization Scheme is a supplementary, individual, and voluntary scheme, allowing for additional contributions during one’s active work life, which are capitalized in a personal account and converted into Retirement Certificates.”
How It Works
In practice, “while employed, you make additional contributions deposited into a personal account.”
“This account is part of an investment fund – the Retirement Certificates Fund,” explains the ISS.
Subsequently, “your monthly contributions are converted into Retirement Certificates, participation units in the Retirement Certificates Fund, which are capitalized over time.”
“Upon retirement, you can receive the accumulated amount in a lump sum, in monthly payments (Lifetime Monthly Income), and/or transfer the total or partial accumulated capital to a child’s and/or spouse’s Complement Plan, if they are members of the Public Capitalization Scheme,” details Social Security.
According to the ISS, “the earlier you join this scheme and the more you contribute monthly, the greater the amount you are likely to receive upon retirement.”
Eligibility for Retirement Certificates
Any person who:
- Is currently employed.
- Is covered by a mandatory social protection system, such as:
• Social Security;
• General Retirement Fund;
• Lawyers and Solicitors’ Provident Fund. - Has an NISS (Social Security Identification Number); registration with Social Security automatically assigns you one if you don’t already have it.
