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Bogotá.- Before the Third Commission of the Senate, Asofondos reiterated its position that the Pension Reform, currently being discussed in Congress, must be the result of a responsible and technical discussion, «free of unproductive ideological debates».

In the opinion of the private pension funds association, the Government’s project has positive aspects that the system needs, however, «it requires important changes and clarifications so that it can be considered as a step forward. A good reform is needed, not just any reform».

Specifically, in a letter addressed to the Congress of the Republic, Asofondos made a series of recommendations to be included in the project, since «the importance of this decision is not minor, as it will affect the life of all Colombians for the next 40 years and the fiscal sustainability of the country».

The new proposals of Asofondos:

  1. The system must be based on savings: even though a contributory pillar based on individual savings would be the best option, if it is decided to maintain a mandatory contribution threshold to the public system, such threshold must be of only 1 legal minimum wage in force, and the resources that enter Colpensiones must be saved in their entirety.
  2. The Savings Fund must grow over time: the savings fund created with the contributions to Colpensiones must grow and last over time; it cannot be exhausted in 2070. In addition, it must be managed by a professional entity, independent of any other.
  3. For those who do not retire, the reform must respect the ownership of their savings and grant benefits at least equal to the current ones: for those who do not retire, through the semi-contributory pillar, the reform must respect the ownership of their savings, and offer at least an equivalent benefit to that which the private pension funds would obtain today, plus a state subsidy that stimulates pension savings.
  4. Operationalization must be guaranteed in order to avoid traumas to members: given the need to guarantee the rights of new and current members, the entry into force of the new pension system cannot take place before 2026 and must be subject to the Financial Superintendence certifying that all the actors in the system, especially Colpensiones, are ready to comply with the obligations assigned to them by the draft law.
  5. The system must guarantee the sustainability of all the actors: the law must clearly specify what the remuneration of the administrators of each of the components of the new system will be, and this remuneration must guarantee the sustainability of the administration companies. Only with clear rules will there be an increase in competition for the benefit of the affiliates. Generating conditions for greater competition and guaranteeing freedom of choice must be the primary objectives of this reform