Impact that would cause a ruling on weeks of contributions for women

Women in Colombia will no longer need to contribute 1,300 weeks to retire, since the Full Chamber of the Constitutional Court resolved a lawsuit and determined this requirement for the female population to be unconstitutional.

(See: The presentation of the pension reform is filed before Congress).

As resolved by the High Court, the difference in the pension age between men and women “creates a legal situation of indirect discrimination”. This then, pIn order for women to be able to access the old-age pension, they must prove the same 1,300 weeks of contributions as men“without considering the barriers and difficulties they face in accessing and maintaining themselves in the labor market and assuming the obligations of caring for the home, as well as those that intensify when they reach adulthood.”.

However, a question that arises from this decision is the impact that this change would have for the Nation. For now, the Ministry of Finance has not presented any calculation of this decision, and although the experts recognize the importance of this position of the Court, they also point out the need for the Government to bear in mind its fiscal impact.

It is worth noting that cThus, four out of 10 pension contributors are women.. According to Colpensiones, of the 6.7 million affiliates, 3.1 million are women, that is, around 46%. Similarly, in private pension funds, women represent 43% of contributors, that is, close to 8.04 million.

Furthermore, according to figures from the Pension and Parafiscal Management Unit (UGPP), in the country there were, as of March 2023, 13.14 million people contributing to the social protection system in Colombia, with 10.9 million as dependents and 2.2 million as independent.

Of that total, 45.6%, or 5.9 million people, are women. LIt is noteworthy that, while the female population represents 44.6% of dependent contributors, among independent contributors they reach the majority, with 50.4%.

In addition, Portfolio calculations, based on the figures of affiliates to the private funds collected by the Superfinanciera, show that there are around 60,313 women over the age of 57 who are still listed in the pension fund administrators (AFP), which means that they have not completed the requirements to retire despite being of age and would be among the first to benefit.

(See: Mintrabajo calls on parties and Congress to process reforms).

The judgment of the Court establishes that, in attention to the need to address the principle of financial sustainability of the pension systemit was established that the effects of the decision will be applied as of January 1, 2026. If a new regime has not been adopted by that date, a gradual decrease in the weeks required for the pension would be applied, and that defined the high Court.

So, it will be decreased by 50 weeks in 2026, so that in that year only 1,250 weeks would be required, and, as of January 1, 2027, it will be decreased by 25 weeks each year until reaching 1,000 weekswhich would be reached by the year 2036.

Paola Gutiérrez, Associate Partner Law at EY Colombia, assured that it is “a fortunate ruling for women as a response to the inequity generated by the difference in pension age, by having to complete the same weeks of contributions in less time than men, thus ignoring the social realities due to which women do not always manage to retire”.

The expert pointed out that the Court, in line with the principle of financial sustainability of the system, deferred the effect of the measure until December 31, 2025.

Marcelo Duque Ospina, director of the firm Cómo Me Pensiono, stressed that for now the details of the sentence are not known, but he referred to how the court recognizes the existence of historical inequalities in relation to access to the formal labor market, and also that the High Court calls the invisibility of unpaid work in the care economy.

“There is an issue that could be a problem, and that is that this will have a fiscal impact, it will cost the State more because women with fewer weeks will have access to a pension and these resources come from the public treasury.or”, said the expert.

(See: ‘Pension reform would cut off the flow of resources to the capital market’).

In addition, he highlighted the need for cCombine this decision with the pension reform which already proposed a reduction of up to 150 weeks for mothers who are heads of households with up to three children.

The president of Colpensiones, Jaime Dussan, highlighted that “all sentences of the judges of the Republic have to be complied with by public officials and the Government”.

And regarding the announcement of the Court, he said that “It is good to suggest that Congress study the decision, and since the pension reform is being discussed, the possibility of including it in the articles that are being included at this time can be considered”.
Yesterday before Commission VII of the Senate, the announcement of this project was made, so today it is expected to begin its debate.

‘See: This reform does not increase the number of pensioners’).

LAURA LUCIA BECERRA ELEJALDE
Journalist Portfolio