Pension Reform in Colombia: Impact, Controversies, and Updates

2023-06-06 13:41:15

policy

The head of state mentioned the controversial pension reform that his government filed in the Congress of the Republic.

6/6/2023

The transcendental determination adopted by the Constitutional Court to reduce the weeks of women’s pension contributions from 1,300 to 1,000, It did not go unnoticed by the President of the Republic Gustavo Petro sending a direct message regarding that decision of the high court.

The Colombian president, Through her Twitter account, she sent a direct message highlighting the measure revealed by the Constitutional Court that generates relief for women and their pension process.

In the same way, the head of state took advantage of that determination of the magistrates to ensure that his controversial pension reform is necessary for its approval in the process that he is carrying out in the Congress of the Republic.

“It seems to me an excellent decision by the constitutional court that makes the pension reform even more necessary to be able to finance this great achievement of working women,” Petro trilled.

In the judicial action, it was claimed for the ignorance of the situation of the majority of women in the country, who for different reasons -poverty, armed conflict, mothers head of the family, informality, among many others- might not meet these requirements, increasing thus the social and economic gap that has historically marked them.

The plaintiff insisted that the aforementioned article ignored the right of women to obtain special protection in the field of social security, to guarantee material equality in access to an old-age pension.

In the legal analysis, it was studied whether establishing a uniform contribution time requirement for men and women, in order to access the old-age pension in the medium premium regime, violated articles 13 (equality), 43 (protection to woman and, especially, the head of the family) and 48 (social security) of the Political Constitution. After several discussions it was determined that yes.

This taking into account the evidence once morest the barriers and obstacles for women to access and remain in the labor market and to guarantee their pension rights, as well as the inequitable conditions experienced by women in the care economy, informality, vulnerability and exclusion, Congress and the Executive Branch were urged to adopt complementary policies and programs to the public pension policy, which contribute to closing the gap in gender equality, especially with regard to the recognition of the economy of the care and the need to socially protect those who exercise it.

Pension reform in Colombia: the workers who would have to contribute more to the pension

Pensions have been a topic of national and general interest in recent years, especially in relation to the changes that have been proposed by the reform, which the Petro government seeks to implement during its current term.

This reform has raised strong controversies and debates, and there are even people who do not see a future for this bill, which continues to be a recurring theme in the Committees of the Senate of the Republic.

It is key to remember that the national government, before this reform, has the following specific requests: that only the contribution up to a minimum wage be transferred to Colpensiones, that there be a commitment, in the law, that establishes a reasonable gradualness to care for all the elderly poor with an income that allows them to be above the poverty line, that people who are currently affiliated with the system do not increase the number of weeks, which today is 1150, to access the Minimum Pension guarantee, that the age for the return of the money should not be increased when they cannot retire and that the increase in contributions be postponed, due to the recent increase in taxes.

In turn, this reform is linked to other measures proposed externally by the national government, such as the article within the National Development Plan (PND) that establishes that pensioners will contribute 2% of their allowance to the health sector.

However, the center of some controversies has been faced with the possibility of changing the minimum age to access these pensions, but also with respect to which group of workers should contribute a greater amount of their salary to this pension fund. general.

So, if the reform is approved, this would be distributed as follows: for those workers who earn between 7 and 16 monthly salaries, the contribution will correspond to 2.5%, in the case of those who receive between 16 and 17 minimum wages, the contribution increases up to 2.7%, while for those who receive between 17 and 18 minimum wages, this value will increase to 2.9%, and if it is higher than 18 wages, the contribution It already reaches 3%.

Although various parties have shown their discontent with the reform in general, however, compared to the rest of the reforms, it shows some points that allow reaching a more egalitarian agreement, as is the case of the Centro Democrático, which assured that it might come to support the pension reform, but only if a balance is found between the needs of the most vulnerable workers and the rest of the workforce.

Meanwhile, during these coming weeks, we will continue to wait for the long-awaited debate to take place in the Seventh Commission, in order to define whether the viability of this project is possible, or if one of the most controversial reforms of the last time in Colombian politics.

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