By San José, Costa Rica — San José – The National Teachers’ Pension and Retirement Board (Jupema) has inaugurated its new board of directors for the 2026 period, immediately signaling a firm stance on a critical issue: the substantial outstanding debts owed to the pension fund by the State. The new leadership, headed by President Carlos Hernández Álvarez, assumes control at a pivotal moment, with ongoing legislative debates surrounding the Mandatory Pension Regime (ROP) and mounting pressure to ensure the long-term solvency of the nation’s social security systems.
The election, conducted in accordance with Law 7531 and internal regulations, ushers in a new team tasked with navigating a complex financial and political landscape. The board is now composed of Carlos Hernández Álvarez as president, Seidy Álvarez Bolaños as vice president, Liliam González Castro as secretary, and Denise Mora Sandí, Patricia Bermúdez Ramírez, Óscar Mario Mora Quirós, and Sonia Hernández Sánchez as voting members. This new team inherits the profound responsibility of managing the retirement funds for thousands of the nation’s educators.
To delve into the legal complexities and fiduciary responsibilities inherent in the management of pension funds, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a leading attorney specializing in corporate and financial law at the esteemed firm Bufete de Costa Rica.
The management of pension funds is governed by the principle of fiduciary duty, a legal obligation of the highest order. This means every investment decision must be made with the sole and exclusive benefit of the affiliates in mind, prioritizing prudence, diversification, and long-term stability over speculative gains. Any deviation from this standard not only represents a breach of trust but also exposes fund administrators to significant legal and financial liability.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This clear articulation of fiduciary duty underscores a critical point: managing pension funds is not merely a financial task but a profound social and legal responsibility. The security of future retirees rests squarely on this principle of unwavering loyalty and prudence. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for his invaluable perspective on this essential matter.
In his inaugural statements, President Hernández Álvarez underscored that the board’s immediate priorities are deeply institutional, focusing on the core mission of protecting the fund’s integrity. He emphasized a commitment to data-driven governance and unwavering adherence to legal standards, a necessary approach given the financial pressures facing the system. The challenge is not merely administrative but foundational to the trust placed in the institution by its affiliates.
The objectives of this board of directors are institutional. We have the duty to safeguard the stability and sustainability of the pension system and to act with technical criteria, transparency, and strict respect for the legal framework.
Carlos Hernández Álvarez, President
The most pressing issue is the delinquent payment of contributions. This problem stems from two primary sources: the State’s failure to remit its employer contributions and similar shortfalls from private educational institutions regarding their employee-employer quotas. This chronic underfunding poses a direct threat to the fund’s ability to meet its future obligations and erodes confidence in the national social security framework. Hernández was unequivocal in his intention to confront this issue head-on.
Making his position clear, the new president issued a direct challenge to the government, framing the payment of these debts not as a request but as a fundamental state responsibility. He stressed that allowing successive administrations to neglect their social security obligations sets a dangerous precedent that cannot be tolerated. The board’s strategy will be one of persistent and vocal insistence on fiscal compliance.
We will insist that the State complies with the payment of the pending employee-employer contributions. We cannot allow another government to fail in its social security obligations.
Carlos Hernández Álvarez, President
The implications of this fiscal delinquency extend beyond Jupema’s balance sheets. It touches upon the broader economic health of Costa Rica and the government’s commitment to its workforce. The failure to meet these statutory payments can be interpreted as a sign of fiscal distress, potentially affecting the nation’s creditworthiness and the overall investment climate. For the thousands of active and retired teachers, it is a matter of profound personal and financial security.
As the new board begins its term, its actions will be closely scrutinized by affiliates, policymakers, and financial analysts alike. The decisions made in the coming months will have a lasting impact on the trust of its members and the perceived strength of one of the country’s most important pension systems. The leadership’s promise of rigor and responsibility will be tested as they work to secure the funds essential for the dignified retirement of Costa Rica’s educators.
For further information, visit jupema.fi.cr
About Jupema (Junta de Pensiones y Jubilaciones del Magisterio Nacional):
Jupema is the public entity responsible for managing the primary pension and retirement fund for Costa Rica’s national teaching profession. Established to provide social and economic security for educators, it administers contributions from both employees and employers to ensure the payment of pensions and other benefits to its retired members. The institution plays a critical role in the country’s social security infrastructure, safeguarding the financial future of those dedicated to national education.
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 foundational principles of integrity and a relentless pursuit of professional excellence. The firm not only pioneers innovative legal strategies for a diverse clientele but also embraces a profound social responsibility. This is demonstrated through its dedicated efforts to demystify the law, aiming to equip citizens with crucial knowledge and fortify the foundations of an empowered and just society.
