Pension reform: points that should be carefully analyzed, according to experts

The pension reform project, the flagship of this Government since the campaign, only needs one debate, with its respective approval, to become a reality, in the midst of a panorama of expectations since there are little more than five weeks until the end of this legislative period and several official initiatives are also underway in Congress.

Last week the endorsement was given in the Seventh Committee of the House of Representatives and with this on the way the only thing left is for the vote to be carried out in plenary of this part of the legislative body, so that after this it can be done the respective conciliation and passes to presidential sanction, if everything progresses as it is going so far.

However, the process of this initiative has raised observations from various sectors, due to the effects it could have on the economy and the lack of an updated financial plan by the Ministry of Finance. The most recent is that of Crowe Colombia, which raised three observations in this regard.

EPS Sura requests voluntary liquidation before Supersalud: these are its reasons

Andrés Monroy, Manager of Taxes and Legal Services at Croweindicated that the first point in question is the amount of 2.3 minimum wages for mandatory contributions in the contributory pillar of Colpensiones, since in his opinion, it is the one that causes the most uncertainty in the different economic sectors.

“Thinking centers such as Fedesarrollo propose that it be reduced to 1.5 minimum wages and that, from that ceiling, Colombians contribute to private pension funds, while President Gustavo Petro proposes that the House of Representatives approve the increase in the contribution threshold to 4 minimum wages, a fact that will surely spark debate,” said this expert.

Constitutional Court denied fiscal impact and ended the non-deductibility of royalties

This tax and legal analyst added that “any increase in the threshold will mean a greater State pension debt in the future, but any decrease will also imply a lower pension value in the future, especially for the youngest, as well as a disincentive to saving and complementary function that private funds would now assume. Judicious analysis is required to strike the right balance.”

The second observation of this team focused on the eventual creation of a committee under the supervision of the co-directors of the Bank of the Republic to manage the savings of Colombians, a point in which they highlight that divided opinions have been generated, since there are analysts who welcome this body assuming this mission, due to its independence and the guarantees it provides, while others show fear.

‘The health system with the intermediation of public resources is unsustainable’, Petro

“Eventually, it would generate a conflict of interest between the function main objective of the Bank of the Republic, which is the control of inflation, and its obligation to produce profitability for this fund. This is because if measures must be taken to control inflation, they may be counterproductive to the fund’s search for profitability. That the Bank of the Republic is one of the most competent entities does not mean that this designation is the most appropriate,” argued the Crowe Colombia expert.

Finally, the report warns that experts are concerned about the effective date, July 1, 2025, if it is approved as stated in the project that hopes to continue advancing in Congress, since there are several centers of analyzes that highlight that it should be left until at least 2026.

Gilinski would sell Nutresa’s eight business units separately

According to Monroy: “The one-year deadline for the reform to come into effect is worrying, especially because many of the issues raised are subject to Government regulation in different areas and require the interaction of different ministries and public entities; added to the fact that Colpensiones does not “It is prepared to assume the pension histories of 90% of the contributing population.”

Taking these aspects into account, Crowe Colombia insisted that Congress must be very rigorous and carefully analyze, article by article, the text of the reform, reviewing the impact of the reform on the economy and listening to all the sectors involved. in this discussion.