The Colombian Ministry of Finance has reiterated its support for the pension reform project underway in Congress, insisting on the need to establish a threshold of three minimum wages to determine the distribution of contributions to Colpensiones and private funds.
The Minister of Finance, Ricardo Bonilla Gonzálezhighlighted that the proposal seeks to ensure pension savings from the contributory regime until the year 2070. He emphasized the difference between the pension system and the solidarity pillar subsidy, underlining that this distinction is fundamental for a clear understanding of the project.
Bonilla González stated that it will be required another pension reform after 2070since the background savings will deplete your reserves and, if no changes are made, a total deficit is expected for the year 2100.
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Referring to the history of the pension system, he mentioned its beginning in 1965 with the old Social Security and its reform with Law 100 of 1993. However, he pointed out that the current model is facing problems, since the pension funds have massively taken away members, leaving the old system, Colpensiones, with pensioners and without members.
The minister highlighted that the expectation of citizens to retire in Colombia is mostly in Colpensiones, which has led to a transfer of at least $98 billion from private funds to Colpensiones in the last decade.
The reform seeks eliminate this imbalance and organize this transfer. The official expressed his confidence that Congress will approve the pension reform project, which has already gone through a first debate in the Senate of the Republic.
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