interest of governments as sponsors of the pension s ystems will always be to maximize the return for the workers Thats why we focus in reduce commisions by a cost reduction ID: 811709
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Slide1
Governance of a switch
Slide2The
interest
of
governments as sponsors of the pension systems will always be to maximize the return for the workers.Thats why we focus in reduce commisions by a cost reduction.
Components of the cost of the pension system
Cost structure of the pension system
Income
=
Cop
+ Cac + Ccom + Cadm y otros + u
Operational
model of the system
Competitive model of the system
Where:Income: Cop: Operational costCac: Customers service costCcom: Comercial costCadm: Administational costOtros: Other associated costsu: Utility
In this equation PROCESAR
adds value to the Mexican Pension System.
2
Slide3The
execution
of
the 4 types of generic transactions (collection, porting, retirement and register or enrollment)
are coordinated between the
Pension Fund Administrators (AFP´s) based on normative references and service agreements.Independent Operational Model(Salvador, Peru and Bolivia)The AFP’s guarantee the uniqueness of the employee´s individual account, employer
compliance, resource
investment, the adequate transfer of accounts and the withdrawal application.Employee
AFP1AFPn
Insurance companyEmployer
Collecting
RegisterPortingProgrammed
withdrawalsRegisterPortingAnnuities
AnnuitiesInvestmentInvestment3
Slide4Centralized Collection Method (Chile and Costa Rica)
The
figure of
the
collector coordinates the billing and the flow of contributions, and the other 3
generic transcactions are coordinated
between the AFP´s. The AFP’s guarantee the uniqueness of the employee´s individual account, resource investment, the adequate transfer of accounts and the withdrawal application.Employee
AFP
1AFPn
Insurance
EmployerCollectionAnnuitiesWithdrawals
Central
collector
RegisterCollectionPortingProgrammed withdrawalsRegisterPorting
InvestmentInvestment
Slide5Model with Central Transactional Controller
(México and Dominican Republic)
This
model is based on the existence of a central data base, from where
the four generic
transactions are coordinated. The operator in this base is the guarantor of uniqueness of the Individual Account and of the timely and fair concurrence of all the processes without attending balance of the accounts, investments, commercial and services matters.
Employee
AFP1 AFP
n Aseg
EmployerEnrollmentTransactionsProgrammed withdrawalsAnnuities
Withdrawals
Central Operating entity.
Collection
RegisterTransactionsCollectionWithdrawalsRegisterTransactionsCollectionWithdrawals Mexico supported Dominican Republic in the design and implementation of their model.
Slide6Average Duration of the Processes.
Country
model
Enrollment
Collection
Porting
WithdrawalsIndependent Operational Model
-
Peru 15 Days
30 Days90 Days
45 DaysII. Centralized Collector Model - Costa Rica
15 Days
8 Days80 Days
40 DaysIII.
Independent Operational Model - México - New model1 Day5 mins (auto enrollment)3 Days
3 Days
30 Days*
1 Day (voluntary savings)
3
Days
3
mins
6
Slide7Governance: Stakeholders
SOCIAL SECURITY INSTITUTIONS (public and private)
IMSS
ISSSTE
INFONAVITFOVISSSTE
FEDERAL GOVERNEMENT
FinanceTreasuryRegulatorPayment CentersRENAPO (NIA)BANK OF MEXICOBANKS
(custodians)
CITI BANAMEXSANTANDERHSBCAFIRMEBANCOMERSCOTIABANKBANORTEBAJÍOE-SAR
Mobile PFASIRISARTEL
Pension Funds Administrator (trustees). OWNERS. ChamberXXI BANORTEPRINCIPALINBURSAAZTECAPENSIONISSSTEPROFUTUROSURACITIBANAMEXINVERCAPCOPPELOTHERS
(services)INFONACOTISSEMYM
COMMERCIAL NETWORKS. RETAILERS. CONVENIENCE STORES. E MONEY
7/elevenMillas para el retiroRed de la GenteGuga 21BansefiFarmacias del AhorroSWAPTransfer
TelecommChedrauiWalmartINSURANCE COMPANYBANORTEBANCOMERPROFUTUROSURA
Procesar
interacts
directly with 49 participants in the system as well as with more tan 600 payment centres and more tan 7 million workers through the
e-SAR web, Afore Móvil App and SARTEL.
Slide8The
leadership
is both a conviction and a need as a Company. It derives from the environment in which it operates. The leadership is excercised
both via the Corporative Governance and
various committees of management control and coordination forums with SAR participants.Governance: InternalDue to the importance of programs and projects, staff is empowered and is required to asume a leadership position. P
ROCESAR is a leader in several
SAR aspects. Administration council3 counselors 1
president 2 independent counselors 1 Executive presidentShareholder Assembly
Technology committeeAudit and Information security committee
Administration
committee
Operational risk committeeRelease committee
Projects committeeProcurement committeeOperational commiteeManagement committeeQuality meetingsSteering committeeStrategic CommitteeOperational technical committee
Contracts for
the provision of services and levels of serviceInfrastructure and technology commitee
Personalized attention to usersAd hoc working
groups in the chamber
Corporate GovernanceRelationship
with
stakeholders
Internal
Committee
Slide9