The draft decree with which The National Government will regulate the savings of the contributory pillar (FAPC), within the framework of the new pension system that the country will have with the approved Law 2381 of 2024 (pension reform).
The decree project was presented by The Ministry of Finance and It will be open to comments until March 8. In it Document consists of “the norms applicable to the administration of the FAPC or the integral social protection system for old age, disability and death of common origin“
But what will be the FAPC, how will it work and what will be its role in the pensions of Colombians? We explain.
The savings fund in the Colombian pension system
The FAPC is a figure that will be created with Law 2381 of 2024 and “It will be intended to finance the economic benefits of the new pillars scheme in charge of the average premium component of the contributory pillar, except for the exceptions stipulated in article 24 of Law 2381 of 2024“, reads in the decree project.
According to the document, will be constituted with the resources that are transferred from the pension funds, “de in accordance with the provisions of literal d) of article 23, article 24 and literal b) of article 71“From pension reform,”as well as their yields and the other income generated in their administration”
The objective of the FAPC will be to become a savings mechanism to contribute to the financing of the payment of economic benefits “of the average premium component of the contributory pillar by Colpensiones and the semicontributive pillar for those affiliates to the system that have not met the requirements to access the contributory pillar and whose contributions are in this fund, which will be part of the financing of the Vitalicia income granted by the aforementioned Pilar, after compliance with the requirements established in article 18 of Law 2381 of 2024”
The decree project adds that “The payment of the economic benefits of those affiliated with the medium premium regime with a defined benefit applied to them the transition regime referred to in article 75 of Law 2381 of 2024 and the quotes made of those affiliated with Media Prima Regime Defined benefit after entry into force of Law 2381 of 2024“
Pension.
The role of the Bank of the Republic in the FAPC
The Bank of the Republic will be in charge of administering the FAPC, after holding a contract with the Ministry of Finance and Public Credit.
In that Contract Administration costs will be established of the FAPC for the services provided by the issuer, “which will be paid charged to the yields generated by the resources of the Fund in the period that are caused or in subsequent periods”
Within administration costs will be the following concepts:
– The hiring of third parties For portfolio management.
– The relevant work for the administration of the fund.
– Investment management.
– Risk administration.
– The accrued fees by the expert members of the Steering Committee.
Bank of the Republic.
Investments and Management Committee
The decree project explains that the investments made by the FAPC will be based on two criteria:
– The investment portfolio must address generational sub -accounts defined by Decree 2555 of 2010, considering the participation of assets consistently with the cohorts of individuals associated with the sub -accounts.
– The investment portfolio must comply with the permissible assets established by Decree 2555 of 2010 in the investment regime of generational sub -accounts.
Already on the Fund’s Steering Committee, it is established that It will be made up of the Minister of Finance and Public Credit or his delegate, the Minister of Labor or his delegate, the director of the National Planning Department and four expert people selected by the Bank of the Republic. The president of Colpensiones will be invited in voice, but without vote to the sessions of said committee.
To this committee, the Banrep must deliver reports on the performance of the FAPC, “including investment and risk management, in the conditions and periodicity that it indicates“
Investment and investments.
