Centers for economic studies, universities, academics, unions, experts and even politicians have launched proposals so that the majority of the population has insurance in old age in the form of a pensionbenefit or universal salary and these approaches have all kinds of characteristics.
(Colombia, pending: pension ideas being debated in Chile and Peru).
The proposals are varied and have become important in the heat of the presidential debate and the environment is propitious for their discussion, since the 15th FIAP Asofunds Congress will be held in Cartagena between Thursday and Friday.
(What candidates think about investment of pension funds).
THE ANDES
The most recent proposal was presented by the Faculty of Economics of the Universidad de Los Andes, which seeks to increase the coverage of the contributory system with changes in the labor market (more contribution) and capital (more returns).
Among some of the proposals of the initiative, it considers it necessary to increase the coverage of the system to more vulnerable population and then increase the amount of transfers, in addition to building a semi-contributory pillar for those who do not reach a pension that would combine transfers for Colombia Mayor and subsidies for those with rights to reimbursement of Periodic Economic Benefits (Beps).
In addition, it proposes that the transfer from Colombia Mayor to older adults who currently do not have pension savings be $412,000 per month and that amount be supplemented with Beps for those who have pension savings.
The proposal seeks to eliminate inequalities between pensioners by moving the RPM towards a pay-as-you-go system and ensuring that the system lasts in the long term. In addition, “an initial increase in the minimum pension age to 60 years for women and 65 for men should be considered to guarantee better pensions.”
Proposes that as there are more and more pensioners in the RAIS and the RPM, they migrate to a system in which pensions are based on the history of contributions, the development of a life annuity market and clarifies that it is key to consider the sufficiency of pensions because the low amounts have generated protests in countries like Chile and highlights that there must be a better alignment of the investment objectives of the AFPs with those of the affiliates.
ISP PROPOSAL
The proposal of the firm Integral Pension Solutions proposes “transform the pension system without having to resort to taxes”.
Among some of the proposals, it proposes to put an end to the competition between schemes, provide coverage to the less favored and contribute to the self-sustainability of Colpensiones and the AFPs.
The initiative imposes a limit on pension liabilities up to a maximum percentage of GDP and creates a flexible pension model, which must be reviewed every 10 years to adjust the parameters according to the fiscal, labor, demographic and pension reality of the country.
It intends to increase the coverage, sustainability and solidarity of the system and recalls that “in 2021 the State spent almost $50 billion on pensions (RAIS, RPM and special), but most of its adult population is uncovered.”
Andrés Felipe Izquierdo, manager of ISP, assures that the pension reform proposal proposes a Pillar 0 (non-contributory) to cover people over 65 years of age with a monthly aid of 40% of the minimum wage.
It proposes four pillars, including a semi-contributory regime administered by Colpensiones for the contribution of those who earn a salary or income between one and three monthly minimum wages, another contributory regime, administered by the AFPs for those who contribute more than three minimum wages and one savings voluntary where the AFPs, life insurers that have private pension insurance and even some public AFPs can be administrators.
ASOFUNDS
Santiago Montenegro, president of Asofondos, recently presented guidelines for a pension reform proposal to prevent, by 2055, more than 7.2 million older adults from being left without a pension or subsidy.
Proposes the creation of an administration of public pension fundswith the same rules as the private AFPs and improve the Colombia Mayor and Beps programs, in addition to having a minimum pension reserve fund.
Likewise, a plan for the elderly that covers the poverty line with a minimum of $331,000 and covers all those over 65 years of age in Sisben one and two, and a semi-contributory regime, for those who do not manage to retire, the Beps system will be consolidated. to form life annuities with returns.
The Banco de la República, for its part, in a recent Economy Draft analyzes that in the long term, and as a consequence of the reforms and their effects, the differences in well-being between pension regimes would be reduced.
BRIEFCASE
