In Colombia, the discussion of pensions in Colombia once again became viral, due to an investment announced for infrastructure by Asofondos. Duke and Petro in crossover of versions.
Colombia News.
Pensions, the resources that workers pay to retire, have been a hot topic of debate in this presidential campaign, Gustavo Petro spoke about the issue and said that the current system managed by private funds does not work for Colombia and proposed ‘democratizing’, To which many responded that he was seeking to expropriate that “Colombian money”, President Iván Duque went further: “saying that these pension resources are public is a robbery”, he did not mention Petro, but ‘the puya’ was for him.
A few hours ago, the discussion of pensions in Colombia was again returned to, due to an investment announced for infrastructure.
by chapters, This thread goes like this:
Peter’s proposal
The presidential candidate for the Historical Pact, Petro, spoke of a system of democratization, through a regime of pilafres”, already implemented in the Netherlands.
“The pillar system makes the private fund system complementary and non-competitive with the public one,” said the candidate in his explanation.
He pointed out that “The law will establish that from its transition date, the contribution will be determined between the public and private funds”. But he clarified, “the decision is free for the current contributors to move their accumulated savings in the private fund to exchange it for a public pension.”
Since up to 20 billion annual contributions from private funds will be paid directly by current Colpensiones pensioners, the government will be able to reduce its transfer from the budget to Colpensiones by 18 billion annually.
– Gustavo Petro (@petrogustavo) March 19, 2022
Of course, there was criticism, debate and those who defended his proposal.
What Duke Said
“They are not public resources,” warned the national president.
In his response, he did not directly mention Petro, but he did point out that “the bombastic proposals” alluded to the one made by the presidential candidate.
«That proposal that says «we are going to use the funds of pensions private because they are public resources. No sir, these are not public resources, they belong to the Colombian people, to each saver for his pension system and to do so is a robbery and a robbery ».
That proposal that says “we are going to get our hands on private pension funds because they are public resources.” No sir, those are not public resources, they belong to the Colombian people, to each saver for their pension system and to do so is a robbery and a robbery. #MorningSignal pic.twitter.com/IHCqbx6KkR
– Ivan Duke ?? (@IvanDuque) April 5, 2022
Controversial pension fund investment
As an “important news for the country” Duke announcedthat the Pension Funds, will make a “historic investment in infrastructure projects for an additional $4.5 billion, to expand road coverage and connectivity. With this, a financing portfolio is established that exceeds $9 billion in the sector.”
The president of the Colombians defends this investment, which many point to as theft “and expropriation” of savings, as a “resource managed and aimed at producing well-being.”
It is not the only one, the Pension Fund has invested in other areas, including energy.
They are resources of 18 million affiliates, informed Santiago Montenegro, president of that fund.
- Works have generated more than 110 thousand jobs, 70% local labor.
We emphasize that the @fundsdepension They are not only present in infrastructure projects, but also in other sectors such as energy. The most important thing is that the investment projection for the next 10 years exceeds $174 billion. pic.twitter.com/zytI23nPlo
– Ivan Duke ?? (@IvanDuque) April 5, 2022
Duque was reminded of the failed infrastructure works, which have taken years, are poorly built (such as the Chirajara bridge that fell), and what the contractors end up stealing.
The pension reform
Many agree that aside from the controversy amid the heat of the campaign and the political “passions” on one side and the other, the pension system in Colombia “does require reform.”
Currently it works like this:
- All funds charge 3% of the total Contribution Base Income, for administration commission and payment of pension insurance.
- The contribution is 16% of the salary, of which the employer contributes 12% and the employee 4%.
“The discussion, which will be important within the pension debate, is why the commission is charged on the total amount of income and not on the amount administered, a point that experts point out, is the 30% to which the candidate referred (Petro )”, indicates The Republic.
For many, the most important thing is that citizens can be duly informed about how their pension payment works.
Some 20,000 people about to retire with the minimum, will be assumed by Colpensiones
How much do they take out of your salary each month to pay for that ‘savings’, either in Colpensiones or private funds.
The same, they all charge, have profits and performance; which can go into profit or loss.
In Colpensiones the commission is usually a little higher, and the insurance a little lower. In any case, the cost for the affiliate is the same, and the insurance he receives is the same.
— Daniel Wills (@danielwillsr) March 15, 2022
#MultiCheck A review of how the pension system works in Colombia and the mistakes and successes of the presidential candidates in recent debates
We check to @petrogustavo @sergio_fajardo @IBetancourtCol and @FicoGutierrez ??https://t.co/lHEp9jk9S1– Colombiacheck (@Colcheck) March 31, 2022
Also read:
Complaint: “They made me a false affiliation to a pension fund”, use of personal information worries
