Pension funds want a pension reform based on savings

During the installation of the XVII Congress of Asofondos, the president of the union, Santiago Montenegro said that the current pension market in Colombia suffers from factors such as low coverage, it is not fiscally sustainable and it also maintains subsidies for people with high incomes.

He stated that for these reasons In previous governments, the need to carry out a reform that is good and based on savings has been supported.

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He said that contrary to what many believe, the union does not want the pension reform that is currently being discussed in Congress to fall and instead, they have asked for consensus to make it a good reform that eliminates subsidies for those with the highest income. have greater coverage and help generate savings and be sustainable.

Montenegro even said that They appreciate that the current Government has had the courage to present the initiative and asked that the Government and the congressmen listen to the voice of the private sector, academia and study centers about what the initiative should have.

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“We ask to work with the congressmen and those who need to work to carry out a pension reform that serves the country,” Montenegro insisted.

He stated that the initiative It must be based on savings and capitalization and the threshold must be a minimum wage, but these resources must be managed by a public fund, that it be sustainable in the future, that it does not end and he stressed that a fund is for older generations and it should not end.

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Adjustments can be made and we hope they are made, but the industry must be sustainable, even with more administrators than the current ones, but they must be sustainable and the resources managed by the contributory threshold must have corporate governance that is not affected by the political cycle. .

For his part, Miguel Largacha, president of the board of directors of Asofondos and AFP Porvenir He assured that whichever public entity manages the resources has to make a very large technical and management deployment. Well, it would receive at least $43 billion a year.

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And in that sense he recalled concepts from the General Prosecutor's Office of the Nation and the General Comptroller's Office of the Republic that said that in the case of Colpensiones, which has 6 million members, it will now manage 24 million, by virtue of the changes of the reform , that is not easy and at least it could happen in 2026.

Montenegro insisted that the threshold be as low as possible, that is, a minimum wage, thereby alleviating the tax burden “since there are fewer subsidies to give and it is more equitable and that is why we propose a minimum wage.”

Read: In the pension reform, the contributory pillar must be a minimum wage

“With 1 or 1.5 minimum wages at that contributory threshold, the flow of savings to the public system is very high”he assured.

Largacha said that the Anif study center took the different models of the analysis and study centers and academics on the reform and concluded that “lowering from 3 to 1.5 minimum wages saves 35 points of GDP or 25 metro lines.” and in this sense, when the threshold is lowered, the subsidy goes to those who need it.