The president of Asofondos, Santiago Montegro, assured in an interview with Yamid Amat for EL TIEMPO that the pension reform project that settled in Congress will force all those people who today only manage to contribute 1,150 weeks to be in the system for 3 more years, that is, 150 more weeks.

(You can also read: Abecé of the changes that would come to the pension system in Colombia)

This is because today a person in the private system contributes 1,150 weeks and in Colpensiones you have to be 1,300.

However, in the draft pension reform There is talk of creating a contributory pillar that has two components: the average premium and individual savings.

(Do not stop reading: Reforms pose dilemmas about today’s employment and tomorrow’s pensions)

Between 1 and 3 minimum wages would be quoted in Colpensiones and above that value in the Pension Fund Administrators (AFP), such as Porvenir, Protección, Colfondos and Skandia. When calculating the allowance, these two benefits would be combined.

This means that 88 percent of private fund contributors, who are currently earning between 1 and 3 minimum wages, will have to go to Colpensiones on a mandatory basis.

“Today a 62-year-old man, in the pension funds, can retire with 1,150 weeks of contributions. With the proposed scheme, he must contribute 1,300 weeks, another three years to meet the retirement conditions. That is a de facto increase, an increase in the retirement age, even if they say no,” argues Montenegro.

Santiago Montenegro, president of Asofondos, assures that Colpensiones is unsustainable.


Sergio Acero. TIME

“It is also a tributary”, says Asofondos

Montenegro also says that the pension is also a tax. This is because by taking contributions up to 3 minimum wages from private funds to Colpensiones the Government «will receive cash but for each peso a debt will be generated that we will all have to pay» later.

“They will pay it to our children. The debt is generated because the pensions in Colpensiones receive an implicit subsidy. We believe that this subsidy should be as little as possible, because that costs a lot of money and the Government does not have it, it is not enough and it will not be enough”, explained Montenegro.

The Minister of Labor, Gloria Inés Ramírez, in the filing of the pension reform.


Sergio Acero/Time

And we add: we want the workers to continue in the pension funds so that this money grows with the returns that are generated and that the Government also set up a pension fund, but operating under the same rules of the game.

The president of the AFP union says that what he is proposing Asofondos is that people can freely choose where they want to contribute, either in a private or public pension fund.

«May the money continue to rent and savings grow, and that the subsidy be delivered at the time of retirement with the resources that are available in the National Budget,» he said.

* EL TIEMPO Editorial House is part of a group of companies that includes an AFP