This Wednesday, March 22, the National government filed in the Congress of the Republic pension reform, project with which you intend structurally modify the system.
The axes of the proposal, one of the main ones of the Petro government, are provide pension security, be financially sustainable and increase pension coverage.
(See: Download and consult the text of the pension reform here).
Before its filing, 86 of the 89 articles that the initiative has were agreed upon in the Coordination Commission, a table made up of representatives of the Government, unions and businessmen, unions and retirees.
So things, What then are the main proposals of the pension reform?
Here are some of the most important proposals made by the Government for the pension system:
(See: Reactions to the filing of the pension reform).
– Establishes a system of pillars.
And this is how those pillars will work:
* Solidarity pillar: for all those over 65 years of age, which are 2.5 million people, who will be given an income above the poverty line, equivalent to 223,000 pesos (just over $46 at current exchange rates). This income will be increased according to the economic growth of the country.
(See: This is how the pension system that is in force in Colombia works).
*Semi-contributory pillar: will grant an income to people who could not retire, but who they have weeks in Colpensiones or savings in your individual account in a Pension Fund Administrator (AFP).
Petro, President of Colombia.
EFE
*Contributive pillar: In this pillar will be all the people affiliated to the system, in which Colpensions will receive contributions of up to 3 smlmv (current monthly legal minimum wage) quoted and the AFP they will receive quotes that exceed 3 smlmv. These two benefits will be combined or complemented to add a single old-age pension.
*Voluntary individual savings pillar: people who have the ability to pay can save with this mechanism to obtain a better pension.
– The ages to retire are maintained: 57 years for women and 62 years for men who have contributed 1,300 weeks.
(See: 94% of Colombians defend free choice to contribute to a pension).
– Colpensiones resources will be used for savingor to guarantee the payment of allowances.
– The current conditions will be respected to people who are affiliated to the pension system, which implies that there is a transition period.
– For each child, the woman is reduced 50 weeks as a requirement to retire, without exceeding 150 weeks.
EFE
