The congressmen made changes to the bill of the pension reform that the Government originally settled in Congress and that it wants to move towards a unified system with a public majority, in which Colpensiones has more weight.
EL TIEMPO compiled what the paper says for the first debate that will be debated in the coming days in Congress. These are the answers to some of the questions you might have.
(You can also read: Pension contributions will not be able to finance government plans: presentation of the reform)
What will happen to the most vulnerable people who do not have access to a pension?
The project has a solidarity pillar in which all men of 65 years of age and women of 60 years of age who are in a condition of extreme poverty, poverty or vulnerability, who would be given an income above the poverty line, which is equivalent to 223,000 pesos, and that it would be enlarged each year by inflation.
And with those who quoted for a few weeks but finally do not give them the accounts to retire?
Men aged 65 and women aged 60 who have between 300 and 1,000 weeks of contributions to Colpensions or in private funds but who did not manage to retire would be in the semi-contributory pillar.
For this group of people, the benefit would consist of a life annuity that would be determined based on the sum of values such as what they have quoted. In addition to this, the project says that this group of people would also receive the benefit granted in the solidarity pillar, that is, the 223,000 pesos.
The benefits established in this article would be paid for life, they could not exceed 80 percent of the minimum wage, nor could they be replaceable upon death, nor could they be inherited.
(In addition: This is how the political environment starts to move forward with the pension)
How do I know where I should list?
The project has a contributory pillar where all the people who are affiliated to the system would be. Between 1 and 3 minimum wages would be quoted in Colpensiones and above that value in private funds, such as Porvenir, Protección, Colfondos and Skandia. When calculating the allowance later, these two benefits would be combined.
And if, for example, I earn 5 or 6 million pesos, can I not leave everything in public?
No, in the event that a worker receives 5 minimum wages, he must necessarily have 3 of them in Colpensions and the remaining 2 would be taken to private funds.
And if his salary is 6 million, 3 would be in public and the other 3 in private funds.
What would be the maximum allowance that you can receive in Colpensiones?
By only being able to quote up to three minimum wages in Colpensiones, the public system could no longer subsidize large pensions like today. According to what he said Finance Minister Ricardo Bonilla, the maximum pension will be on three salaries, which with a replacement rate means that the allowance would be 1.8 or 2 minimum salaries. In private funds would be the key to obtaining a higher allowance.
(Also read: Pension reform: these are the changes included in the project filed for debate)
Does the project increase the contributions that people currently make?
For those who contribute on the basis of up to three minimum wages, the contributions do not change. However, for those who are above yes.
The paper for the first debate reads as follows:
– Those who have a Base Contribution Income equal to or greater than 4 minimum wages and less than 7 will have an additional contribution to the Pension Solidarity Fund of 1.0% of their Base Contribution Income.
– Those between 7 and 16 minimum wages will be charged with an additional contribution of 2.5%.
– Those equal to or more than 16 minimum wages and less than or equal to 17 will have an additional contribution of 2.7%.
– Those with more than 17 minimum wages and less than or equal to 18 will have an additional charge of 2.9%.
– Those with more than 18 minimum wages will be charged with an additional contribution of 3.0%.
And what about pensioners’ allowances?
Pensioners who earn an allowance of more than 10 minimum wages and up to 20 will contribute to the Pension Solidarity Fund for the Subsistence Subaccount at 1 percent, and those who earn more than 20 minimum wages at 2 percent for the same account.
And who would not be touched by the reform?
The project says that people who, when the law came into force, have 1,000 weeks of contributions would enter a transition regime and the provisions of Law 100 of 1993 and the regulations that modify, repeal or replace it will continue to be applied in their entirety.
What would that transition regime look like for that group of people?
What is stipulated in the project is that people with more than 1,000 weeks of contributions or periods of service and who have less than 10 years left to retire will have 2 years from the enactment of the law to change the regime with respect to the regulations former.
And for Colombians who made contributions abroad, would they also apply?
The presentation for the first debate specifies that Colombians who have made pension contributions abroad, voluntarily or within international social security agreements, the transition regime will apply as long as the sum of said periods completes the density of weeks minimum transition requirements established prior to the entry into force of this law.
He Ministry of Labor and Colpensions They will determine the verification methodology of weeks quoted in relation to the effective period of the transition for its recognition.
Will the reform replace the retirement age?
The bill does not directly touch age, which is 57 years for women and 62 years for men. However, as the bill proposes that people who contribute up to three minimum wages in private funds (AFP) for their pension must move to Colpensiones, this would indirectly lead to these people who today contribute 1,150 weeks (in what private) will have to contribute an additional 150 weeks to reach the 1,300 of the public scheme, which in the long run would imply three more years of contributions.