If you try the pension reformthe allowances of people who receive more than 3 minimum wages will have a reduction, and those who earn 4 minimum wages or more must make a greater contribution to the Pension Solidarity Fund.

(In addition: The defense of the Minhacienda to the threshold of 3 minimum wages of contribution in Colpensiones).

This Tuesday in congress, the Minister of Finance, Ricardo Bonilla, recalled that as all workers will be obliged to contribute to Colpensiones the contribution on the first three minimum wages to be received, henceforth a worker with an income of three minimum wages, taking into account account the replacement rate, has an allowance of 1.8 minimum wages.

Given the uncertainty of many workers about the income they would have upon retiring, experts from the National University of Colombia (UNAL) explained the impressions that the bill would bring if approved.

In the case of a person who receives income between 8 and 9 minimum wages, that is, around 9,280,000 pesosIf you are affiliated with Colpensiones and 2023 is your final year of contribution, he would receive an allowance of 5,660,800 pesos.

To guarantee that allowance, the State should have saved a reserve of 1,380,717,663 pesos, which is paid throughout the life of the contributor, then it will have a subsidy of 78.84 percent.

(You may be interested in: Gustavo Petro in a speech: ‘The social reforms of this Government are not a whim’).

For these same income, how would the allowance be with reform?

With the proposed pension reform, instead of receiving 5,660,800 pesos as an allowance, the worker would receive 3,738,017 pesos.

“That means that with the reform, in this specific case, the State would be saving close to 600 million pesos. If the worker earns 8 minimum wages, only 3 can be made available to Colpensiones and the rest in a private fund”, commented Professor Óscar López, from the Department of Mathematics at UNAL.

The requirements apply to the two regimes of the general pension system.

The calculation of this allowance arises from the following account:

The worker would receive 2,209,800 pesos from Colpensiones, and 1,528,217 pesos from the private fund, for a total of 3,738,017 pesos.

If the private funds maintain returns similar to those they are obtaining today, the worker in this example would go from having a replacement rate of 61 percent without the reform to one of 40.3 percent with the reform.

(Also: These are the red lines of the Gustavo Petro government on the pension reform).

Last week, the pension reform began its process in Congress, although the text was filed on March 22, only until now have the first public hearings been summoned to discuss the issue.

According to the Government’s position, the threshold for mandatory transfer to Colpensiones of the contributory pillar is three salaries although private pension funds have maintained that it should not be greater than one minimum salary and there are academic sectors that extend this figure to two salaries.

*EL TIEMPO being part of a conglomerate of companies to which an AFP belongs.

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