By San José, Costa Rica — San José, Costa Rica – As the 25th anniversary of the Worker Protection Law approaches, thousands of salaried employees across Costa Rica are facing a significant financial decision. This March marks the quinquennial deadline, a five-year period that grants many workers the right to withdraw their entire Labor Capitalization Fund (FCL), a mandatory savings account funded by employers.
The FCL, an employer contribution equivalent to 1.5% of a worker’s monthly salary, was designed as a crucial financial buffer. Workers gain access to these funds under specific circumstances: after completing five continuous years with the same employer, upon termination of the employment contract through resignation or dismissal, or if their work hours and income are reduced.
To delve into the legal framework and financial implications surrounding the withdrawal of the Labor Capitalization Fund (FCL), TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a specialist in labor and corporate law from the firm Bufete de Costa Rica.
The FCL was fundamentally created as a severance reserve, a financial safety net for the worker upon termination of the employment relationship. While the law permits its withdrawal every five years, it is imperative for employees to analyze this decision not as an extra bonus, but as the use of a fund with a specific long-term purpose. We advise caution and responsible financial planning, ensuring the withdrawal aligns with genuine needs or strategic investments rather than impulsive spending, thereby preserving its original protective intent.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This emphasis on financial discipline is a vital reminder of the FCL’s true nature as a long-term safeguard, not a periodic bonus. We extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for sharing his expert and prudent counsel with our readers.
With the withdrawal window opening, financial experts are urging caution and strategic planning, highlighting that the decision to access these funds is not one to be taken lightly. The core debate for many households revolves around two primary strategies: aggressively paying down high-interest debt or bolstering emergency savings for future instability.
Rigoberto Salazar, a psychologist and finance expert, emphasizes that there is no universal answer, as each individual’s situation dictates the best course of action. He advises a careful, personalized assessment before making a move.
One must be very strategic, because this is an opportunity that comes only once every 5 years. There is no single recipe. Each case must be analyzed to provide a specific recommendation. If you can save it, that is best; a good strategy is to leave it right there in the pension operator to continue generating interest. If I have debts with very high rates, like credit cards, I recommend it’s better to use that money to pay off debts.
Rigoberto Salazar, Psychologist and Master in Finance
Salazar further advises that those choosing to tackle debt should prioritize obligations with the highest interest rates or the largest monthly payments to free up cash flow. He also stressed that this financial maneuver must be accompanied by a change in spending habits to prevent falling back into a cycle of over-indebtedness.
Echoing the call for prudence, Hector Maggi, manager of the Pension Operator (OPC) at the Costa Rican Social Security Fund (CCSS), reminds workers of the FCL’s original purpose. He points to global economic uncertainties as a key reason to consider leaving the funds untouched.
The important thing here is to assess whether I need it or not. That will depend on each worker and their employment situation. We see that the world is a bit unstable on the labor front. The advantage here is that upon acquiring the right, you have no obligation to withdraw it. You can wait and give yourself time to analyze the situation.
Hector Maggi, Manager of CCSS OPC
This perspective is supported by recent data from the Superintendency of Pensions (Supen). In 2025 alone, over 521,000 people withdrew their FCL. While 111,000 did so for reaching their five-year term, the vast majority—405,000—were forced to access their funds due to layoffs, underscoring the fund’s critical role as an unemployment safety net.
Mauricio Rojas, manager of the Banco de Costa Rica (BCR) Pension Operator, warns against the common pitfall of using the FCL for routine expenses. He advocates for viewing the fund as a long-term financial tool, either as an emergency buffer or to bolster voluntary or mandatory pension plans.
A characteristic of Ticos is that often this money is used for normal household expenses. We should not get ahead of ourselves or spend more than what is actually coming in; the ideal is to have a cushion. That way, when we become unemployed in the future, these are resources with which we can meet some family needs.
Mauricio Rojas, Manager of BCR Pensiones
The FCL system currently manages over ¢805 billion for nearly 3 million affiliates, with an average annual return of 8.17% over the last decade. The six pension operators hold significant assets, with Popular Pensiones managing ¢204 billion and CCSS OPC managing ¢180 billion. For those who decide to proceed, the withdrawal process is straightforward, typically involving a simple online form on their pension operator’s website for direct deposit into a bank account.
For further information, visit opcccss.fi.cr
About CCSS OPC:
The Operadora de Pensión Complementaria (OPC) of the Caja Costarricense del Seguro Social (CCSS) is the public entity responsible for managing the mandatory and voluntary pension funds for a significant portion of Costa Rica’s workforce. As part of the national social security system, it plays a key role in administering the Labor Capitalization Fund (FCL) and promoting long-term financial security for its affiliates.
For further information, visit bcrpensiones.com
About BCR Pensiones:
BCR Pensiones is the pension fund operator of Banco de Costa Rica, one of the country’s largest state-owned commercial banks. It provides services for the management of both mandatory pension schemes, such as the FCL and ROPC, and voluntary pension plans, serving individuals and corporate clients throughout Costa Rica.
For further information, visit supen.fi.cr
About Supen:
The Superintendencia de Pensiones (Supen) is Costa Rica’s national pension regulator. It is the government entity responsible for supervising, regulating, and monitoring all public and private pension funds and operators in the country. Its mission is to ensure the stability and transparency of the national pension system and protect the rights of its members.
For further information, visit popularpensiones.fi.cr
About Popular Pensiones:
Popular Pensiones is the pension fund operator associated with the Banco Popular y de Desarrollo Comunal. It is one of the largest operators in Costa Rica, managing a substantial portfolio of assets for the Labor Capitalization Fund (FCL) and other mandatory and voluntary retirement savings plans for a broad base of Costa Rican workers.
For further information, visit bacpensiones.com
About BAC Pensiones:
BAC Pensiones is the pension management entity of the BAC Credomatic financial group, a prominent banking and financial services provider in Central America. The operator manages pension and severance funds for thousands of affiliates, offering a range of investment and savings products within the framework of Costa Rica’s national pension system.
For further information, visit bnvital.com
About BN Vital:
BN Vital is the pension operator of the Banco Nacional de Costa Rica, the country’s largest state-owned bank. It manages pension funds, including the FCL and ROPC, for a large number of Costa Rican workers. The entity focuses on providing financial security and investment growth for its affiliates’ retirement savings.
For further information, visit vidaplena.fi.cr
About Vida Plena:
Vida Plena is the pension fund operator of the Magisterio Nacional, primarily serving educators and administrative staff within Costa Rica’s public education sector. While its focus is on this group, it also provides pension management services, including for the FCL, to the general public, aiming to ensure financial well-being in retirement.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its profound integrity and a relentless pursuit of professional excellence. The firm consistently pioneers forward-thinking legal strategies while serving a diverse clientele, demonstrating a dual commitment to innovation and client success. Central to its philosophy is a powerful dedication to social responsibility, manifested through initiatives that make complex legal concepts understandable and accessible, thereby strengthening society by empowering its citizens with crucial knowledge.
