Regulation 60 - Income Inprema

This Regulation is issued in compliance with the provisions established in Legislative Decree No. 57-2019 dated August 28, 2019, published in the Official Gazette La Gaceta on October 26, 2021, which contains the reform of Articles 3, 123, and 126 of Legislative Decree No. 247-2011 of the Law of the National Institute for Teacher Social Security (INPREMA), and which has as its objective the regulation of the Benefit of Additional Anticipated Sum of Sixty (60) Monthly Pensions.

For purposes of application of this Regulation, the terms and definitions set forth below shall have the meaning expressed for each one, as follows:

• a)

  Beneficiaries: Any person or persons who directly or indirectly receive benefits established in the Institute's Law.

• b)

  Beneficiaries or Legal Heirs: The person or persons who are to receive, in accordance with Law, the corresponding benefit upon the death of the participant.

• c)

  Benefit of Additional Sum or BSA: Benefit of Additional Anticipated Sum of Sixty (60) Monthly Pensions to Retired Teachers and Those Pensioned for Disability of the NATIONAL INSTITUTE FOR TEACHER SOCIAL SECURITY (INPREMA), as reformed by Legislative Decree No. 57-2019.

• d)

  Commission: The National Commission for Banking and Insurance, known by its acronym CNBS.

• e)

  Institute: National Institute for Teacher Social Security, known by its acronym INPREMA.

• f)

  Law: Law of the NATIONAL INSTITUTE FOR TEACHER SOCIAL SECURITY (INPREMA).

• g)

  Retiree: Participant of the System who was granted the Voluntary Retirement Benefit by Decree No. 1026-1980.

• h)

  Periodic Payments: Corresponds to the number of annual payments referred to in the "Gradualism Table of the Number of Annual Payments of the Benefit of Additional Sum." i) Participant: Any person who by virtue of Law is protected by the Institute or maintains expectations of reinstatement. j) Pensioner: Participant of the System who was granted the Disability Pension Benefit by Decree 1026-1980. k) Pension: The annuity payable to the Retiree or Pensioner, with monthly periodicity and in accordance with the Law of INPREMA. l) Regulation of the Benefit of Additional Sum or BSA Regulation: Regulation for the Granting of the Benefit of Additional Anticipated Sum of Sixty (60) Monthly Pensions to Retired Teachers and Those Pensioned for Disability of the Institute.

In accordance with the provisions established in Legislative Decree No. 57-2019, which entered into force by its publication in the Official Gazette La Gaceta on October 26, 2021, Retirees and Pensioners may request the anticipation of the Benefit of Additional Sum in accordance with the provisions established in this Regulation.

Beneficiaries or legal heirs shall have no right to payment of the benefit established in Article 3 of this Regulation if they are receiving or have received the Continuation of Retirement; therefore, such benefit shall continue to be paid until the completion of all monthly payments approved by the Institute. CHAPTER II MODALITIES OF THE BENEFIT

The amount of the Benefit of Additional Sum corresponds to the equivalent of sixty (60) times the pension that the retiree or pensioner received in the month of December 2021. This benefit shall be paid in accordance with what is indicated in this Regulation.

The Benefit of Additional Sum shall be paid in the following manner: 1. An initial payment of L100,000.00 (One hundred thousand exact lempiras) in the year the request for the Benefit of Additional Sum submitted by the retiree or pensioner is approved, in accordance with Annex 1. 2. The difference to complete the total amount of the Benefit of Additional Sum shall be payable beginning in the following year, in accordance with the Gradualism Table of the Number of Annual Payments of the Benefit of Additional Anticipated Sum of Sixty (60) Monthly Pensions, described in Article 7 of this Regulation.

For payment of the difference established in numeral 2 of Article 6, which completes the total amount of the Benefit of Additional Sum, the following gradualism table shall be considered: Gradualism Table of the Number of Annual Payments of the Benefit of Additional Sum (BSA): The reference age for making the payments corresponding to the above table shall be the age reached by the retiree or pensioner on December 31 of the immediately preceding year. The periodic payments shall have as their reference basis the pension corresponding to the month of December 2021, with which the Benefit of Additional Sum was calculated, which shall not be revalued. These periodic payments shall continue until the total amount of the Benefit of Additional Sum calculated in Article 5 has been paid. The last payment may vary according to the outstanding value of such benefit.

The Benefit of Additional Sum shall be paid by bank transfer to the account where the Institute deposits the pension payment to the retiree or pensioner. CHAPTER III CONCERNING THE REQUEST

The Request for Payment of the Benefit of Additional Sum must be submitted by the retiree or pensioner to the Institute through the General Secretariat, in accordance with the format established in Annex 1 of this Regulation, duly signed.

Once this Regulation enters into force, the Institute shall begin making the initial payment of L100,000.00 of the Benefit of Additional Sum described in numeral 1 of Article 6, beginning in the month of June 2022, as the corresponding requests are presented and authorized, with the Institute having a maximum period of sixty (60) calendar days counted from the date of submission of the request. The difference in payment of the Benefit of Additional Sum shall be made in accordance with what is established in numeral 2 of Article 6 of this Regulation. CHAPTER IV CONCERNING BENEFICIARIES

If the retiree or pensioner dies before fully enjoying the Benefit of the Additional Anticipated Sum, calculated in accordance with Article 5 of this Regulation, the Institute shall grant to his or her beneficiaries or legal heirs the outstanding amounts of cancellation of the Benefit that was paid during his or her lifetime. Such payments shall be made monthly.

In order for the Institute to pay the outstanding amounts of cancellation of the Benefit of Additional Sum of retirees or pensioners who die before fully enjoying their benefit, the beneficiaries or legal heirs must submit the corresponding request to the General Secretariat of the Institute, in accordance with Annex 2 of this Regulation. The Institute shall resolve the requests submitted by the beneficiaries or legal heirs in accordance with what is established in the corresponding legal framework.

The outstanding amounts of cancellation of the Benefit of Additional Sum of retirees or pensioners who die before fully enjoying such benefit shall be paid to the beneficiaries or legal heirs monthly by transfer to the bank account indicated in the request detailed in Annex 2 of this Regulation. CHAPTER V OTHER PROVISIONS

The retiree or pensioner who has credit obligations with INPREMA may request the Institute to apply the payments received under the concept of the Benefit of Additional Sum, once authorized, to amortize or cancel the balance of such credit obligations. In the event that the retiree or pensioner dies with an outstanding loan balance with the Institute, the provisions established in the Internal Regulation of Coverage for Loans of the Credit Protection Program (PPCI) and the Loan Regulation of the Institute shall apply, as applicable. Additionally, for a situation arising from the implementation of this Regulation that is not provided for therein, the provisions established in the Institute's Law, as well as the current Regulations and Policies, shall apply.

This Regulation shall enter into force as of its publication in the Official Gazette La Gaceta. Lic. Héctor Wilfredo Díaz Romero Commissioner President Abg. Jorge Adalid Rodriguez Commissioner Abg. Francisco Alberto Bocanegra Commissioner