A second phase of technical assistance for supervising public employees’ retirement savings has received Cabinet Council authorization. Cabinet Decree No. 13 of October 13, 2026 permits the signing of the Panama SIACAP-2 agreement for up to US$300,000. The provision was published on October 20 in Official Gazette No. 30638-A and takes effect upon promulgation.

The agreement involves the Republic of Panama, represented by the Ministry of Economy and Finance (MEF), the governing board of the Public Employees’ Pension Savings and Capitalization System (SIACAP), and the International Bank for Reconstruction and Development (IBRD). These are reimbursable advisory services: the decree requires the governing board to make the necessary budgetary provisions to pay the institution for the assistance.

According to the document’s background, the new phase seeks to complete elements of risk-based supervision. Its workstreams include defining the supervisory cycle, developing early-warning and investment-monitoring systems, and establishing risk metrics. It also covers identifying staffing and systems requirements for a risk department, training officials and preparing a manual for graduated interventions.

The described scope includes a contingency plan for possible termination of contracts with system operators. For participants in the savings scheme and entities involved in its administration, these tools could improve the identification of and response to operational and investment risks. The authorization does not establish that these instruments have been implemented, nor does it currently support claims of improved returns or reduced losses.

Article 2 individually authorizes specified MEF officials or Panama’s ambassador to the United States to sign the agreement on behalf of the Republic and the documents needed for its implementation. It also requires countersignature by the Office of the Comptroller General. Under Article 3, SIACAP’s governing board is the beneficiary and the body responsible for carrying out and implementing the agreement.

The decree cites an initial advisory engagement authorized and countersigned in 2025, whose objectives it declares fulfilled. That statement comes from the instrument itself and does not replace an independent evaluation of results. The verified development now is authorization to contract for the second phase; signature, countersignature, disbursements and deliverables must be distinguished from this initial decision. The impact on supervision will depend on implementation and effective use of the planned tools.

Research assisted by Sentinel, with editorial verification of official sources. Discover Legislat.ai