Senate panel asks pension regulator about E fund losses
Senate labor committee requests a report from the pension superintendent on losses in the conservative E fund and their impact on near-retirees.
KEY POINTS
- Senate Labor Commission president Luciano Cruz Coke requested a report from Pension Superintendent Joaquín Cortés on fund E losses.
- Fund E fell 4.92% in September and accumulated a 10.39% decline in the first seven months of 2026.
- The letter asks about the sufficiency of regulation and supervision of derivative investments.
- Fund E had an average annual volatility of 9.62% between June 2021 and May 2026.
- Former Finance Minister Ignacio Briones accused administrators of making an imprudent bet on interest rates.
Luciano Cruz Coke, president of the Senate Labor Commission, sent an official letter to Pension Superintendent Joaquín Cortés asking for information on the losses of pension fund type E in 2026 and their effects on members close to retirement.
The letter asks whether the regulation and supervision of investments, especially in derivative instruments, were sufficient and timely.
“The explanations given by the pension fund administrators so far seem to assume that people are foolish.”
According to regulatory data cited in the letter, fund E fell 4.92% in real terms in September, with an accumulated decline of 10.39% in the first seven months of the year.
The document also notes that between June 2021 and May 2026, fund E had an average annual volatility of 9.62% and an average annual real return of 0.90%.
Former Finance Minister Ignacio Briones criticized the pension fund administrators, saying their explanations treat members as if they were foolish and that they made an imprudent financial bet.
Briones said the losses were linked to interest rate derivative operations in the United States, which moved from gains of US$1.4 billion a year ago to a negative valuation of US$7.7 billion in September.
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