What benefits are lost when retiring with the IESS

Members of the Ecuadorian Social Security Institute (IESS) can retire if they meet the minimum age and contribution time requirements.

The amount of pensions received by the retiree is related to the contribution salary. The average of the sum of the best salaries of five years of their work history is multiplied by a coefficient that is related to the years of contributions.

Requirements to access old-age retirement

In order for retirement to be accepted _in addition to the minimum age and contribution time requirements_, the member must register the date of leaving the entity or entities where he worked, through the notice of departure that the employer must send to the IESS. Nor should you have loans in arrears with the IESS.

Once the affiliate registers the personal data required by the institution, the system informs the amount of the pension that he will receive, which is deposited in the personal bank account of the applicant, which is registered in the IESS, every 20 of each month.

When does it apply and how is employer retirement calculated?

Step by step to apply for retirement

Retirees are entitled to the following benefits and services:

• unsecured loan
• Mortgage loan, depending on the ability to pay, according to the monthly income you receive.
• Health coverage. General and comprehensive medical assistance: preventive, curative, surgical, pharmaceutical and rehabilitation. Home visits and ambulance service.
• Health coverage for the spouse or partner. As long as you request the 4.15% discount on the pension you receive from the IESS.
• Medical care for children. With the discount of 3.41% of the monthly income, the retiree’s son, up to 18 years of age, is entitled to receive health benefits.
• Best Increase. The retiree who reaches 70 years of age and retired with 35 years of contributions is entitled to a better increase in his pension.

Old-age retirees also receive a thirteenth pension, which is paid in December of each year. This is the result of the sum of the monthly pensions received during the year, divided by 12 (full year) or by the months in which the pension was received (proportional).

While the fourteenth pension is paid in the month of April to pensioners of the Coast and Insular Regions; and in the month of September of each year to those of the Sierra and Amazon. The amount is equal to a unified minimum wage, in force in the year of payment.

When the retiree dies, it generates the right to monthly income for the widow or partner and for children under 18 years of age or disabled children without age limit, who have been in charge of the retiree. They are also entitled to funeral aid.

Conditions for loans

Although retirees maintain practically the same benefits as workers, there are some conditions when it comes to unsecured loans.

The IESS Bank (BIESS) details that the retiree may request an amount of up to 80 unified basic salaries, depending on their ability to pay, according to the following detail:

Early retirement

Members can also retire early by applying retirement due to disability. This anticipated economic benefit is granted to the insured (dependent, independent, voluntary or unemployed) who, due to common or general illness, causes physical, functional or mental alteration, is incapacitated to seek temporary or permanent, through a job proportionate to their capacity, forces and theoretical and practical training.

You can access this benefit when the affiliate is active, and must have a minimum of sixty (60) contributions, of which six (6) must be immediately prior to and consecutive to the incapacity for any work.

The benefits that retirees have access to due to disability are the same as those that all insured people have access to: health insurance, unsecured and mortgage loans, life pension.

What benefits does a beneficiary of the IESS receive from the pension insurance?

How much does a retiree in Ecuador receive monthly?

Unemployed

IESS affiliates who stop working and stop contributing retain the right to apply for health and pension insurance benefits for a certain period of time for each benefit.

For example, those who stop contributing because they resigned or were fired from a job, maintain the benefit of access to medical and pension services for two months.

On the other hand, the affiliate who stops contributing to the IESS and is not old enough for ordinary retirement, retains the right to this benefit in a percentage that is related to the years of contributions, according to the following table:

In addition, those who lost their jobs with social security have the option of continuing to contribute voluntarily or independently to complete the number of contributions they need and proceed to retire. (I)