2023-10-03 17:46:52
Upon completion of 13 months working in the same company or institution, the employee who is ‘labor dependent’ has the right to begin receiving ‘reserve funds’.
But what does this term refer to?
The reserve fund is an amount that the employer pays to the worker in the exclusive case that they are affiliated or are retirees assigned to the Ecuadorian Security Institute for more than one year. This value can be charged monthly or deposited in an account managed by the IESS. This as a savings option for the affiliate. In the case of the second option, the minimum cumulative amount is 36 payments (monthly contributions) to withdraw that money with interest.
Contribution time
That is, only after three years have passed can the money be withdrawn. It is worth mentioning that it will yield 6.7% interest annually. In addition, experts on the subject mention that the accumulation of this amount becomes a type of guarantee so that employees can take out a loan. In this context, the IESS evaluates the amount held in the reserve fund and in the unemployment fund to calculate the value that affiliates can access for an unsecured loan at the IESS Bank (Biess).
This extra value of the benefit is equivalent to 8.33% of the salary paid by the company. However, when choosing the withdrawal option, it is important for the employee to keep in mind that, in the case of choosing savings. In the case of dismissal before 36 contributions, these cannot be withdrawn until the three-year period has expired.
The process to withdraw reserve funds can be online or in person. In the online process, the main requirements are to have the password and ID of the IESS portal to access the Reserve Funds application. Some considerations for retirement are: keeping a bank account on file in your work history; not have current unsecured loans; not have unpaid employer obligations; active members; maintain 36 or more contributions of reserve funds; terminated members; remain unemployed for at least 60 days retired or over 60 years of age. Without a doubt, this fund is a benefit that can be a long-term savings method for members and retirees.
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