Pension reform: this is what the project brings - Sectors

pensions

There will be four solidarity pillars. Know the project.

The government, production unions, labor unions and experts met today to review the draft of the pension reform project that is expected to be filed this Thursday before Congress.

(You can also read: In what do pension funds invest Colombian savings?)

These are the changes that are being proposed and how the new pillars of the pension reform would look:

1. Solidarity Pillar: It will be for all those over 65, which are 2.5 million people, who will be given an income above the poverty line, which is equivalent to 223,000 pesos.

This amount is three times higher than the subsidy currently granted by the Colombia Mayor program. This income will be increased according to the economic growth of the country.

The Government expects to file the reform this Thursday, March 16.

2. Semi-contributive pillar: an income will be granted to people who cannot retire, but who have weeks in Colpensiones or savings in their individual account in a Pension Fund Administrator.

3. Contributive Pillar: in this it will be all the people affiliated to the system, where Colpensiones will receive the contributions up to the first 3 minimum wages quoted and the Pension Fund Administrators will receive the contributions that will exceed the 3 minimum wages. These two benefits will be combined or complemented to add a single old-age pension.

The parameters to recognize the old-age pension, such as age and weeks, are maintained.

4. Volunteer savings pillar: people who have the ability to pay can save with this mechanism to obtain a better pension.