After the announcements made in the campaign by the current President, Gustavo Petro, and various discussion spaces with unions, unions and academics, the National Government finally put its pension reform proposal on the table.
(ABC of the pension reform project that the Petro government is preparing).
This Wednesday the Ministry of Labor installed the tripartite subcommittee that will work on the bill that is expected to be presented in the next legislature. And at the first meeting of this body, a document was presented that establishes the work route for the construction of the reform.
Among the elements that were presented are the bases of the comprehensive reform of the old age protection system sought by the President of the Republicthe work schedule for the subcommittee, which runs until April of next year, and an analysis of the financing of the system.
The model proposed by the Government is based on a system of three articulated pillars in which both Colpensiones participate, as well as the administrator of the average premium regime, as well as the Pension Fund Administrators (AFP) from the individual savings with solidarity regime (RAIS ).
The first level would be a solidarity pillar, with which it seeks to cover with a basic income corresponding to half the current legal minimum wage for people who do not have enough contributions to the system to reach a pension.
(The Petro government presented its pension reform proposal).
The second point, according to the government’s proposal, would be a contributory pillar in which all people who earn up to four minimum wages would enter to contribute.. At this point, everyone would contribute to Colpensiones to finance a universal public fund.
The third pillar, finally, would have additional contributions for all those citizens with incomes above four minimum wages, which would go to the AFPs.
Pensions.
According to the Ministry’s presentation, today Colpensiones has 1.5 million pensioners and 6.7 million affiliates and the entity has resources of $18.4 billion as contributions from the Nation, $15.6 billion from affiliate contributions and $11.1 trillion corresponding to the return of contributions. The AFPs, on the other hand, have 264,967 pensioners, 18.3 million and affiliates, and contributions amount to $24.7 billion.
The Government’s proposal seeks to shelter 3 million older adults with the solidarity pillar. And he mentions, in addition to the $18.4 billion that goes to Colpensiones, resources of $1.7 billion for a Pension Solidarity Fund, which today covers 1.7 million older adults with a subsidy of $80,000 per month.
“It is a structural reform, we are looking for how to generate greater coverage, so that all older adults who today are out of the possibility of having a dignified old age, have some elements that allow them through the support of the State to release their resources and thus promote an old age with dignity and that they do not live on the charity of their families”said the Minister of Labor, Gloria Inés Ramírez.
(The key points of the mixed pension project proposed in Chile).
From Asofondos, the union that brings together the four Pension Administrators in the country (Protección, Porvenir, Colfondos and Old Mutual), it was requested that technical discussions be given, based on numbers and figures, and ‘leaving ideology aside’.
Daniel Wills, Technical Vice President of Asofondos said that “There is nothing new in the statement from the Ministry of Labor. The proposed reform corresponds to what was said during the campaign by President Petro, what we would like is for the 18 million workers affiliated to the pension funds who for years have been building their savings to have a voice at the table that was inaugurated, who it will continue to grow if they remain affiliated, and that they will certainly want their opinion to be considered”.
Another element that was established within the framework of the subcommittee is the schedule to build the bill, which is expected to be filed before the Congress of the Republic in the fourth week of April 2023.
Among the planned activities is the presentation of the proposals of the unions and the trade union sector, which will take place between November and December. Starting in January of next year, the subcommittee will receive proposals from invited guests.
The presentation of the report regarding the proposals of the different actors is scheduled for February, both on the points of agreement and disagreement, and the presentation of the final report of the Ministry of Labor to the Permanent Coordination Commission.
Between March and the first weeks of April 2023, on the other hand, internal working groups will be held to draft the Government’s legal proposal, comments will be received from the Commission and the final adjustments of the project are expected to be made. .
LAURA LUCIA BECERRA ELEJALDE
