Pension and Retirement Board of the National Teachers' Union
Costa Rica

Pension fund investment diversification - Investing in public and private infrastructure projects

Implementation year

Costa Rica’s Pension and Retirement Board of the National Teachers’ Union (Junta de Pensiones y Jubilaciones del Magisterio Nacional – JUPEMA) runs the Collective Capitalization System (Régimen de Capitalización Colectiva – RCC), exclusively for the education sector. To ensure the actuarial sustainability of the system, it invests the financial resources contributed by members in various alternative investments.

The proposed good practice involved modifying the constitutive law of the RCC to include a new investment alternative that adds value to the profitability of the investment portfolio so that, in terms of actuarial sustainability, the pension fund meets the minimum rate of return required. Similarly, it means these investments contribute to the development and growth of the country, as it makes it possible to invest in funding public and private infrastructure projects. This is achieved through the strategic allocation of investments and by using the risk indicators of this new alternative as inputs.