Pension reform: more discounts for workers and the richest

Next March 22 will arrive in Congress the pension reform project of the government of Gustavo Petro. The draft of the proposal based on a pillar system was recently released.

(Read: What does it mean that Colpensiones could invest in TES?).

In the document, presented by the Ministry of Labor, it is established that the subsidies for high pensions will be eliminated and the contributions to workers of 4 minimum wages for the pension solidarity fund.

In this sense, workers would have to move to the new pillar system and Colpensiones would receive the contributions of those people who earn up to three minimum wages, private funds who exceed this value. These two benefits are would unite to add a single old-age pension.

In this sense, the reform would eliminate the subsidies for high pensions that are currently managed in Colpensiones since the maximum pension that would be under the public regime would be three minimum wages.

(In addition: Pension reform: requirements to access a bonus of 223,000 pesos).

According to the National Association of Financial Institutions, Anif, the ceiling continues to be high since almost 87% of the population in Colombia currently earns less than three minimum wages.

“In some way, the capacity for private savings is being affected, and that is an important issue, because Colombia is a country with low levels of savings to begin with, and in a scenario like the one being considered in the reform, that it will continue to deepen”, said Anwar Rodríguez, vice president of Anif.

However, with respect to discounts, article 19 of the reform establishes that for the contributory pillar the contribution will be 16%, where 75% is assumed by employers and 25% by workers.

Along with this, those who have a monthly income equal to or greater than four minimum wages will have an additional contribution of 2% on your contribution base that will be allocated to the Pension Solidarity Fundhe. For now that contribution was 1%.

(See: This is what the pension reform of the Petro government offers).

The reform also establishes that people with an income equal to or greater than 16 minimum wages will have to make an additional contribution of 0.2% if they earn between 16 and 1 smlmv, 0.3% if they earn 17 to 18 smlmv, 0 .6% if they earn between 18 and 19 smlmv, 0.8% if they have income between 19 and 20 smlmv and 1% if they exceed 20 smlmv.

Along with this, pensioners with a table of more than 10 minimum wages and up to 20 minimum wages will contribute 2% to the Pension Solidarity Fund. Those who accrue more than 20 minimum wages will have to make a contribution of 3%.

WEATHER – ECONOMY AND BUSINESS