REDCAMIF (a detailed MixMarket report can be found here) 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 MFIs 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.

The P&D Network will provide technical support in the Pilot Project for Micro pensions in Central America. The details of the cooperation scheme are still being negotiated by the parties.