Requirements to Retire: Benefits, Step by step and MORE

Through this article you will know the Requirements to Retire in Costa Rica. When it comes time to retire as a worker, it is important to know the rights you have after serving in an institution for so many years.

You will also find the types of benefit plans and other information of interest, which will help you carry out your procedure correctly.

What are the necessary Requirements to Retire?

To acquire an old-age pension in Costa Rica within the Disability, Old-age and Death Regime (IVM), the employee must comply with the following:

Be 65 years old and have made at least 300 contributions.

There is the possibility of advancing the retirement with the old-age pension, and the first of the Requirements to Retire it is:

  • The ladies must be 59 years and 11 months old and have contributed 450 quotas.
  • Gentlemen must be 61 years and 11 months old and have 462 quotes.

If the citizen does not have at least 300 contributions, he has the opportunity to choose a relative pension, this having at least 180 contributions.

The pension can be postponed, it is in accordance with the length of stay of the total contributions and the average income.

The average income within the last 60 months, establishes the base element of the pension (from 43% to 52.5%).

By having all the Requirements to Retire, you can start with your procedure.

Step by step the Requirements to Retire

As previously stated, within the Requirements to Retire the main one is the minimum age required.

On the other hand, the amount of quoted quotas, that is why it is important to check if the person complies with this point.

Once these are corroborated, you must fill out the Old Age Pension Application provided by the CCSS (Costa Rican Social Security Fund.

This application must be correctly filled out with all the information requested and signed.

A copy of the identity card must also be attached on both sides.

All documents must be presented at one of the offices of the CCSS Pensions, which are found throughout the Costa Rican territory.

By presenting the Requirements to Retire complete, the process will be easier.

There is also the CCSS Pension Management Services Platform.

This office is located in the Jorge Debravo building with a public opening hours from 8:00 am to 5:00 pm

Here you will be given a receipt (password), which will help you return to this office and find out about the status of your pension.

When confirming that the person can opt for the pension and is a State worker, they are informed so that they can dispense with their position and enjoy this right.

In the case of private sector workers, they are spontaneously entitled to a pension and if they want to, they can continue working and receive their pension.

The retired person you will receive a copy of the resolution, which you must consign in the clinic or Ebais where you are registered, and they will prepare a card as a pensioner.

Then you must bring a certificate that accredits you as a pensioner to your OPC (Pension Operator), and to the Solidarity Association where you were registered to receive your saved money.

The aforementioned certificate must have the following:

  1. Full name of the person, the number that identifies him as a pensioner and the date of issuance of the certificate.
  2. Signed declaration on your right to retirement or pension.
  3. The correct date, which the employee begins to enjoy the pension and the amount.
  4. Point out (if the occasion warrants it), if there is any authorization procedure for beneficiaries in process within the regime.
  5. The signature of the person in charge of the Basic Regime for this management is important, it can be digital or in their own handwriting.
  6. The certificate must be clearly read and not have any type of errors or amendments.

For the OPC, as of March 2010, the people who process the pension have to choose a Benefit Plan and receive the pension.

The pensioner must stipulate with the help of the operator, the way you will receive the pension money Compulsory complementary, which is an extra entry that the CCSS will give you.

The Benefit Plan points to one of the viable ways to receive the money, which cannot be withdrawn in just one part.

If you want to know more about these plans you can enter this link.

If you have any questions, you can contact the office of the CCSS Pensions or with the Superintendency of Pensions.

Benefits of Retirement in Costa Rica

The Benefit or Pension Plans of the ROP (Compulsory Regime of Complementary Pensions), have the objective that new retirees use the money to cover their expenses.

The OPCs have a period of up to 90 continuous days, starting from the date of the submission of the request and that they have the complete requirements, and thus be able to make the benefit of the person operational.

The institutions that administer these plans are the OPCs and the insurance institutions.

The legal basis for this type of benefit is stipulated in the Worker Protection Law in its article 22.

Also in the Benefits Regulation found on the SUPEN (Superintendency of Pensions) web portal.

Currently there are several types of benefits, which are:

The Scheduled Withdrawal

It is when the retired person agrees with the OPC, a constant income, which arises from annually dividing the capital for the pension, by the amount of the actuarial value (value of a pension unit).

The Life Annuity

It is the type of pension through which the pensioner agrees with an accredited insurance institution in Costa Rica an income for life each month.

That month-to-month rent is mandatory to pay from the moment it is acquired until the day the person dies.

Permanent Income

This type of pension is when the pensioner agrees with the OPC a plan, through which he perceives the utility of the investment as capital. The money is awarded to the designated pensioners, successors or proxies upon the death of the pensioner.

When presenting the certificate as a pensioner by the basic regime to your OPC, the institution makes a calculation and establishes if the money receives them in its entirety or through a type of benefit.

When the amount of your ROP is below 10% of your base pension (substitute or IVM), you have the opportunity to receive all of the savings in your ROP account.

If the amount of your ROP is greater than or equal to 10% of your base pension (substitute or IVM), you have to choose one of the benefit plans. There is the possibility of choosing two benefit plans, such as:

The life annuity and the programmed withdrawal, taking into account that the pension that must be received by each one, is greater than or equal to 10% of the amount that is acquired. If not, you can only choose one type of benefit plan.

When the excess amount is invested with the objective of producing a profit, you should know that in some moments the utility may be nil.

In the event that the pensioner dies, the Benefits Regulation of the Individual Capitalization Regime, stipulates the following:

  • The beneficiaries will be those determined by the IVM, the Judicial Power and the Magisterium.

Benefits for Dependents or Survivors

With regard to Dependent or Survivor Benefits, there are two laws:

Worker Protection Law No. 7983 and Law No. 7302 of the National Pension System, which prevent the survival benefit. A citizen is entitled to a survivor’s pension when he / she is the surviving spouse or daughter of the deceased employee.

This occurs when the employee has retired or has been chosen to be retired at the moment of his death. When the survivor is the spouse, he / she corresponds to 50% of the pension that the deceased received if he / she was under 50 years of age.

If you have between 50 and 59 years of age corresponds to 60%. 70% if you are 60 years of age or older, in addition to having a disability.

The children who become orphans and dependent parents are entitled to receive the pension. It is important to note that the total amount awarded to the survivors of the deceased person cannot exceed 100%.

Are there Disability Pensions?

If there are Disability Pensions, there are also two laws:

Worker Protection Law No. 7983 and Law No. 7302 of the National Pension System, which prevent the Disability Pension.

This applies to pensions for disability in situation of some disease that results in permanent disability, injuries or non-work accident.

This pension is in accordance with the time that the total contribution lasted and the average income.

This average income during the last 60 months establishes the basic element of the pension (between 43% and 52.5%). It is determined as the old-age pension.

In the same way, you must comply with the Requirements to Retire and process the request.

What is a Pension?

A pension can be defined as the income that a worker receives every month. This income comes from a fund regulated by a Social Security System or collective insurance companies or from a specific budget item of the State.

The basis of the Social Security System are the contributions made by registered citizens. They quote a fraction of their salary and the contributions of state employers.

These contributions are used to pay pensions to workers who have suffered health incidents and achieve retirement when they reach the established age.

In addition to the stipulated age, they must have a specific amount for years of service. The pension is awarded to the surviving spouse or successors of the employee when the employee dies.

Upon reaching a certain age, it is a relief to have financial benefits month by month, which contribute to a quality of life. Pensions awarded to employees are part of these benefits.

We hope that the information we leave here about the Requirements to Retire, has served to clarify doubts and you can organize your procedure for the moment that corresponds to you.

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