First law: 1924.

Current laws: 1987 (Supreme Decree No. 21637 of 25 June, on social security reform); 1996 (Law No. 1732 of 26 November, on pensions), implemented in 1997 (Supreme Decree No. 24469 of 17 January); and 2010 (Law No. 65 of 10 December 2010, on the Integrated Pensions System).

Type of program: Social insurance and mandatory individual account system.

Salaried workers and apprentices.

Voluntary coverage for self-employed persons.

Insured person: For temporary disability benefits and medical benefits, see source of funds under Sickness and Maternity.

Self-employed person: For temporary disability benefits and medical benefits, see source of funds under Sickness and Maternity. For permanent survivors and disability insurance (work injury), 1.71% of covered earnings.

20% of the self-employed's contributions for survivors and disability insurance (work injury) also finances the solidarity pension. See also source of funds under Old Age, Disability, and Survivors.

Employer: For temporary disability benefits and medical benefits, see source of funds under Sickness and Maternity. For permanent survivors and disability insurance (work injury), the total cost is met through employer's contributions calculated based on the gross earnings of all employees.

20% of the employer's contributions for survivors and disability insurance (work injury) also finances the solidarity pension. See also source of funds under Old Age, Disability, and Survivors.

Government: Contributes as an employer.

Work injury benefits: There is no minimum qualifying period. Accidents that occur while commuting to and from work are covered if the employer provides the transportation.

Insured persons must be younger than age 65 and assessed with a degree of disability of at least 10%. If the disability is the result of an accident at work, the insured must have been employed when the accident occurred. If the disability is the result of an illness, the disability must begin while the insured is employed or up to 12 months (18 months for miners) after employment ceases.

Voluntarily insured self-employed persons must be younger than age 65, be assessed with a degree of disability of at least 10%, and have made at least three contributions in the last 12 months before the disability began. If the disability is the result of an accident at work, the disability must be assessed while the insured is making contributions. If the disability is the result of an illness, the disability must begin while the insured is making contributions or up to nine months (18 months for members of mining cooperatives) after contributions cease.

Temporary disability benefit: 75% of the insured's last earnings is paid after a three-day waiting period for up to 26 weeks; may be extended for an additional 26 weeks if continuing medical care will prevent permanent disability.

Permanent disability pension: For an assessed degree of disability of at least 60%, the monthly pension is 100% of the insured's average earnings in the last five years (or over the whole contribution period if the insured has less than five years of contributions).

The insurance company also pays a monthly contribution of 10% of the insured's average earnings in the last five years (or over the whole contribution period if the insured has less than five years of contributions) to the insured person's individual account until retirement or death.

The minimum earnings used to calculate benefits are the legal monthly minimum wage.

The maximum earnings used to calculate benefits are 60 times the legal monthly minimum wage.

The legal monthly minimum wage is 815.40 bolivianos. (The legal monthly minimum wage is adjusted according to changes in the cost of living, based on available funds. The last adjustment was made in April 2011.)

Partial disability:  For an assessed degree of disability of at least 25% but less than 60%, the pension is the degree of disability multiplied by the insured's average earnings in the last five years (or over the whole contribution period if the insured has less than five years of contributions).

The disability pension ceases at age 65 and is replaced by the old-age pension.

Disability grant:  For an assessed degree of disability of at least 10% but less than 25%, a lump sum of 48 times the insured's average earnings in the last five years (or over the whole contribution period if the insured has less than five years of contributions) is paid.

Certified medical doctors assess the degree of disability.

Benefit adjustment:  Pensions are adjusted annually according to the UFV (Unidad de Fomento de Vivienda), calculated by the Central Bank according to changes in the cost of living.

Medical benefits: Benefits include necessary medical and surgical care, hospitalization, and medicine.

Survivor pension: 80% of the monthly base survivor pension is paid to a widow(er) or cohabiting partner with no eligible children; 60% if there is one eligible child; and 50% if there are two or more eligible children.

The monthly base survivor pension is 100% of the deceased's average earnings in the last five years (or over the whole contribution period if the deceased had less than five years of contributions).

The minimum earnings used to calculate benefits are the legal monthly minimum wage.

The maximum earnings used to calculate benefits are 60 times the legal monthly minimum wage.

The legal monthly minimum wage is 815.40 bolivianos. (The legal monthly minimum wage is adjusted according to changes in the cost of living, based on available funds. The last adjustment was made in April 2011.)

The benefit is paid 13 times a year.

The widow(er)'s or partner's pension ceases on remarriage or cohabitation.

Orphan's pension: 20% of the monthly base survivor pension is paid for one orphan; 50% is split equally if there are two or more orphans; and 100% is split equally among full orphans.

The monthly base survivor pension is 100% of the deceased's average earnings in the last five years (or over the whole contribution period if the deceased had less than five years of contributions).

The benefit is paid 13 times a year.

When an orphan ceases to be eligible, the widow(er)'s or partner's pension is recalculated.

All survivor benefits combined must not exceed 100% of the base survivor pension.

Other eligible survivors: If there is no surviving spouse, partner, or child, 60% of the monthly base survivor pension is split equally among other eligible survivors.

The monthly base survivor pension is 100% of the deceased's average earnings in the last five years (or over the whole contribution period if the deceased had less than five years of contributions).

The benefit is paid 13 times a year.

All benefits combined for other eligible survivors must not exceed 60% of the base survivor pension.

If the deceased was not eligible for a pension, the accumulated capital plus interest of the deceased's mandatory individual account may be used to finance temporary payments to the eligible survivors according to pension allocation rules.  The monthly payments must be based on a hypothetical base survivor pension of at least 60% of the legal monthly minimum wage.

The legal monthly minimum wage is 815.40 bolivianos. (The legal monthly minimum wage is adjusted according to changes in the cost of living, based on available funds. The last adjustment was made in April 2011.)

Benefit adjustment:  Pensions are adjusted annually according to the UFV (Unidad de Fomento de Vivienda), calculated by the Central Bank according to changes in the cost of living.

Funeral grant:  A lump sum of 1,800 bolivianos is paid.

Note: Once established, the Public Management Body for Long-term Social Security, under the supervision of the Ministry of the Economy and Public Finances, will administer permanent survivors and disability insurance (work injury) until a Public Insurance Entity is established.

Ministry of the Economy and Public Finances (http://www.economiayfinanzas.gob.bo/) provides general supervision.

Ministry of the Economy and Public Finances
Edificio Palacio de Comunicaciones Piso 19,
La Paz,
Bolivia

Tel.: +(5912) 220 34 34
Fax: +(5912) 235 99 55

Pension Fund Administrators (AFPs) collect contributions and contract insurance companies for work injury disability and survivor insurance.

Insurance companies administer work injury disability and survivor programs.

Assessment Body (EEC), established by the AFPs and the insurance companies under the legal form of a civil association, determines the origin, cause, degree, and date of the disability for disability benefit purposes as well as the origin and cause of death for survivor benefit purposes.

National Health Fund (http://www.ap.cns.bo) administers temporary disability benefits and medical benefits.

National Health Fund
Av. Mariscal Santa Cruz,
Apartado 9572,
La Paz,
Bolivia

Tel.: +(5912) 233 43 91
Fax: +(5912) 235 00 64