Dili, July 21, 2025 (Média Democracia) – The Ministry of Social Solidarity and Inclusion (MSSI) has signed a cooperation agreement between the National Institute of Social Security (INSS) and the Central Bank of Timor-Leste (BCTL) to manage the Social Security Reserve Fund (FRSS) with an initial capital of $50 million. The signing ceremony was held on Wednesday at MSSI’s central office in Caicoli, Dili.
Minister of Social Solidarity and Inclusion, Verónica das Dores, explained that the current legal framework defines the FRSS as a legal entity under public law, with its own legal personality and administrative, financial, and asset autonomy, dedicated exclusively to achieving its objectives.
“The Social Security Reserve Fund (FRSS) is solely responsible for accumulating and managing the reserves from the contributory social security regime (annually transferred from INSS), ensuring financial stability and sustainability of the system to guarantee the future payment of pensions for current contributors,” said Minister Verónica das Dores.
She further explained that the FRSS is under the indirect supervision of the Ministry of Social Solidarity and Inclusion, in accordance with Article 4 of Decree-Law No. 55/2020, dated October 28. Since its creation, the FRSS has accumulated revenue from 2017 to 2023, totaling $151,402,538.60.
“In early 2024, the IX Constitutional Government began making fixed-term deposits in commercial banks in Timor-Leste, including BNCTL, Mandiri, BNU, BRI, and ANZ. With additional contribution revenues, the FRSS capital increased to $190,919,533.93. By the end of 2024, the total FRSS capital had reached $217,155,229.91 through contribution revenues and returns from time deposit investments in commercial banks. In 2025, FRSS capital grew further to $233,515,612.83. From January to June 2025, the capital reached $262,382,800.88,” the Minister stated.
She confirmed that the fund’s fixed-term deposits are held exclusively in bank accounts at commercial banks in Timor-Leste. An investment agreement was also signed with “Caixa Gestão de Ativos Portugal” to manage $40 million in financial asset categories such as equities.
“Today, through MSSI, FRSS signed an agreement with the Central Bank of Timor-Leste to serve as a financial entity managing a portfolio worth $50 million, specifically invested in financial asset classes such as U.S. Government Bonds,”she added.
She also noted that negotiations are ongoing with CROWE International Consulting Investment from Malaysia to manage another FRSS portfolio worth $35 million, to be invested in asset classes such as equities and government bonds.
“In conclusion, for 2025, the Ministry of Social Solidarity and Inclusion, which oversees both INSS and FRSS, aims to diversify the Social Security Reserve Fund for sustainability through both domestic and international financial markets,”the Minister said.
She clarified that of the FRSS capital, $137,382,800.88 is circulating in domestic financial markets through fixed-term deposits in commercial banks. Meanwhile, $115,000,000.00 is circulating in international financial markets, managed by financial entities including Caixa Geral de Ativos Portugal, the Central Bank of Timor-Leste, and Crowe International Malaysia.
Regarding revenue from the reserve fund investments in 2023, 2024, and 2025, financial entities have been managing FRSS portfolios both domestically and abroad. Investment revenue from fixed-term deposit portfolios in 2024 totaled $10,014,351.84. From January to July 2025, revenue reached $1,432,269.73. These earnings are expected to increase by the end of 2025 when the fixed-term contracts expire. Investment revenue from the general asset fund in Portugal, which began on May 19 and continued until June 31, 2025, also reached $1,432,269.73.
Report by: Nelfiano
Photo by: Nelfiano