The meeting, which took place on October 23, followed up initial contact by Mr. Walter on behalf of REDCAMIF, informing on the possibility of technical support from the P&D Network for the Pilot Project for Micro pensions in Central America.
REDCAMIF is a private entity comprised by six microfinance networks in Guatemala, Nicaragua, El Salvador, Honduras, Panama and Costa Rica. It has more than 100 affiliated MFIs with more than 750 offices and 2,800 promoters in the region serving nearly 900,000 customers.
In 2009 REDCAMIF developed a pilot project for micro pensions, which intends to contribute to reducing poverty of micro and small entrepreneurs, self employed people and low-income families in Central America through the formation and accumulation of economic resources in the medium and long term. The project – financed by the Inter-American Development Bank and the government of Luxembourg - will be implemented by ten IMFs affiliated with the national microfinance networks in Guatemala (three), Honduras (three) and Nicaragua (four).
The proposed micro pensions plan is a “hybrid plan”, consisting of a basic plan (defined lifetime benefit of 1% of income for each year of service) and an additional plan (defined contributions of 2% of income for an individual’s account). The plan combines the interests of potential young members through their long-term contributions with the more immediate needs of potential members, approaching retirement through a solidarity component. The funds collected would remain invested as individual accounts, until the conditions for pension payout are satisfied or the member withdraws from the plan.
During the meeting, the parties shared their ideas on the proposed project, agreed on the possibilities of establishing cooperation schemes between them and outlined the scope of the assistance that the P&D Network will provide REDCAMIF.