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March 23, 2023
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‘Have a dignified old age’, key to the pension reform for Petro

'Have a dignified old age', key to the pension reform for Petro

On the afternoon of this Wednesday, March 22, the project of the pension reform ‘Change for old age’ before the Congress of the republic. The act was headed by the President Gustavo Petrowho said that “The objective of this bill is that every older adult, man or woman, who has the legal requirements related to age, work and time, may have a right to a pension“.

The President also highlighted that the majority of older adults are women, so “this is a law for women“.

(Pension reform: most important proposals of the project).

He assured that a pension system depends on the productivity of his society. “When we talk about productivity, we are talking about the economic structure of the country“.

He also added that “this project can guarantee the right to a pension if Colombia can transition to a productive economy, otherwise there will be no sustainable pension“.

According to Peter, This is the moment to see if Colombia is a society of rightsthat there be a social State of law, that is to say that people are subject to fundamental rights such as the right to work and to retire“said the head of state.

(Download and consult the text of the pension reform here).

Similarly, the Minister of Labor, Gloria Inés Ramírez, pointed out the following: “we want to attack the current design of old age protection at its roots, we want it to be financially sustainable (…) The parameters to determine the level of old age remain the same as they are today“.

It should be remembered that this reform is based on four fundamental pillars. These are: solidarity, semi-contributory, contributory and voluntary individual savings.

(Reactions to the filing of the pension reform).

Through his Twitter account, the Speaker of the House, David Racero, He remembered this Wednesday what they are about:

The first pillar of basic solidarity income, to lift out of extreme poverty those who have already given years of work, but who could not contribute, nor ensure an income for old age“, said.

Along the same lines, he explained that for those who worked formally for a few years, but could not retire, there is the second pillar. They will be guaranteed a compensatory income.

(This is how the pension system that is in force in Colombia works).

Regarding the third key point, he said that those who earn between 1 and 3 current legal monthly minimum wages will be quoted in Colpensionyesand those who earn more than 3 SMMLV, may do so in the private pension fund of their choice.

Lastly, there is a voluntary savings pillar so that those with greater ability to pay can save to obtain a better pension.“, finished Racero.

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