ABC of the changes that will come after the approval of the pension reform

With the pension reform already approved, we must look carefully at what changes will come to the system and how these will affect the workers who are in the system today. medium premium fund (Colpensiones) or in those of individual savings (private)or those who cannot obtain an allowance.

Here are some aspects to take into account with this legislative decision, which, if it becomes a Law of the Republic, would begin to apply throughout the country.

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All contributors will be obliged to contribute to Colpensiones. YesIf a person earns 2.3 minimum wages or less, they will have their entire contribution in Colpensionesbut if your salary is higher than this figure, you must deposit it into one of the private funds (Porvenir, Protección, Colfondos and Skandia).

Yes. For example, if a person earns five minimum wages (approximately 6.5 million pesos), 2.3 of these will be held by the public fund and the remaining 2.7 will be held by the private fund, preferably..

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Given the case in which the changes materialize, the 18 million current members of private funds would have to be in Colpensiones: Some 16 million contributors would remain only in the average premium regime and the other two would contribute, part in Colpensiones and the other in the individual savings regime..

It is intended that in each regime the calculation be made as it is currently done (For example, in the public regime the allowance would be between 65 and 80% of the average salary of the last 10 years over the 2.3 salaries) and that the resulting allowances are added.

What the Ministry of Labor is that at the time of retirement, if the person has a share in the private fund, this would be transferred to Colpensiones so that the public regime is the only drawer.

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Since Colpensiones would only be responsible for pensions up to 2.3 minimum wages, subsidies for the highest pensions would end. Thus, The key to obtaining a greater allowance in the future would be in private funds.

The idea is that the contributions of all workers up to 2.3 minimum wages go to a savings fund that, although in principle it was going to be managed by Colpensiones, will finally be managed by the Bank of the Republic. It would be a bag of money that would be filled with contributions and from which they would draw to pay people who retire. The silver would be put into assets such as fixed income, variables, etc..

Yes, the idea is that a committee of experts periodically reviews how aspects such as the demographic pyramid, among others, are changing to make future decisions. The Minister of Labor, Gloria Inés Ramírez, estimates that in 15 years we could already be talking about another parametric reform.

The project does not raise the pension age. This is still 57 years for women and 62 for men.

In some cases. For example, if a minimum wage worker today is in a private fund where she has to complete 1,150 weeks to retire, but they force her to move to Colpensiones where she must complete 1,300 weeks.

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With this, he would have to spend three more years contributing to the system. However, for women it is reduced to 1,000 weeks in accordance with the Court’s guidelines. In the same way, advance benefit is provided for from 1,000 weeks.

Those who already have contributions for 750 weeks in the case of women and 900 in the case of men. These people would continue to be subject to Law 100.

*Portfolio is part of a conglomerate of companies to which an AFP belongs.

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