Three weeks after the end of the legislature, the paper for the first debate of the pension reform. Although the congressmen made a series of changes to the bill, it maintained its initial essence.
The reform of the government of Gustavo Petro proposes that the pension system have four pillars: solidarity, semi-contributory, contributory and voluntary savings. In addition, it speaks for the first time of shielding system resources.
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“In no case may the contributions and contributions of the affiliates and the financial returns be used to financing of government aircraftpayment of public or private debt, be programmed or appropriated in current income accounts within the framework of the nation’s budget cycle, ”says the new text.
1. Solidarity Pillar:
In the solidarity pillar will be all the elderly who are in a condition of extreme poverty, poverty or vulnerability, who would be given an income above the poverty line, which is equivalent to 223,000 pesos, and which would be increased each year by inflation.
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Although in the initial proposal it was established that the beneficiaries should be 65 years old, in this first presentation a differentiation is made between men and women. They could claim it when they are 65 years old and they are 60. In addition, before it was said that it would be administered by the Department for Social Prosperity and now it says that it would be by the Ministry of Labor.
The pension reform contemplates giving a basic income to the elderly in a condition of vulnerability.
Sergio Acero/Time
2. Semi-contributive pillar:
There are also some changes to the semi-contributory pillar. This would seek to grant an income to people who have a number of weeks quoted in Colpensiones or in private funds, but who were unable to retire because they were not given the accounts. These would also be given a life annuity that would be determined based on different values such as the amount of contributions.
As in the semi-contributory pillar, it says that Men of 65 years of age and women of 60 years of age will be beneficiaries who have contributed to the system. There is also another important change here, and that is that these people require contributions between 300 and 1,000 weeks and not between 150 and 1,000 weeks, as was previously established.
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3. Contributing pillar:
The contributory pillar, which was the one that had generated the most controversy, would remain the same, with its two components: the average premium and individual savings. Here would be all the people in the country who are affiliated with the system.
The Minister of Labor, Gloria Inés Ramírez, in the filing of the pension reform.
Sergio Acero/Time
Between 1 and 3 minimum wages would be quoted in Colpensions and above that value in the Pension Fund Administrators (AFP), such as Porvenir, Protección, Colfondos and Skandia. When calculating the allowance, these two benefits would be combined.
This means that around 88 percent of private fund contributors, who are currently earning between 1 and 3 minimum wages, will have to go to Colpensiones and the AFPs would keep the rest.
“In the presentation, the threshold of 3 minimum wages follows. However, we will continue proposing 2 minimum wages”, said the congresswoman from the ‘U’ Party, Norma Hurtado.
According to the projectColpensions it would begin to manage a new savings fund that would be fed by the income from contributions from the medium premium contributory pillar. In this new presentation, a little more is developed about how it would work.
Specifically, given that the income from the savings fund of the contributory pillar will correspond to 1.8 percent of GDP for the periods 2025-2028; 1.6 percent of GDP for 2029-2035; 1.4 percent of GDP for 2036-2040; 1.2 percent of GDP for 2041-2050, and 1.0 percent of GDP as of 2051.
Homeless older adults receive direct monetary assistance through the Colombia Mayor program.
Archive / WEATHER
4. Pillar of voluntary savings
Finally, it would be the voluntary individual savings pillar in which people who would have the ability to pay could be in order to obtain a better pension in the future.
new items
The paper for the first debate also includes several new articles. For example, there is one who says that he will have the right to a early old age pension people who suffer from a physical, mental or sensory deficiency of 50 percent or more, who reach 50 years of age in the case of women and 55 years of age in the case of men after the entry into force of the law , and who have contributed continuously or discontinuously for 1,000 or more weeks.
There is also a new article for the formation of the Colpensiones board of directors. This would be made up of the Minister of Labor, the Minister of Finance, three independent members for a fixed period of 4 years who will be appointed by the President, a representative of pensioners and another of active workers.
*EL TIEMPO being part of a conglomerate of companies to which an AFP belongs.
