• The Pension Reform, which was approved in the fourth debate in the House of Representatives, will guarantee 86% old-age protection coverage.
• The Minister of the Interior, Luis Fernando Velasco, celebrated the decision of the majorities in the plenary session of the House of Representatives, where the Pension Reform was approved and assured that it is a “revolutionary law in social matters.”
Bogotá, June 14, 2024. (@MinInterior)-. With 88 votes in favor, this Friday at 6:30 in the afternoon, the Plenary of the House of Representatives approved the Pension Reform bill, an initiative that in the words of the Minister of the Interior, Luis Fernando Velasco, «“It is a revolution in social matters.”
The majorities in the House decided to accept the text of the bill that was approved in the third debate by the plenary session of the Senate.
The initiative that was approved in the fourth debate, seeks, among other topics, to guarantee a dignified old age to more than 2.5 million Colombian older adults who are in a situation of extreme poverty, guaranteeing them the right to a pension and making this system me more equitable, modern and supportive.
«The approval of the Pension Reform means lifting 2.5 million Colombians, 2.5 million households, out of extreme poverty. It is removing subsidies for the privileged and bringing them to those who need it, it is thinking about the future of Colombia. “I am proud of the decision that Congress made,” assured the Minister of the Interior, Luis Fernando Velasco.
According to official Dane figures, in the current pension system only one in four men and one in eight women retire in Colombia.
Among what was approved, it stands out that all Colombians must contribute their income up to 2.3 minimum wages in Colpensiones and with the Pension Reform the process to move to the state pension system will be simplified.
In addition, it is guaranteed that the weeks of contributions and the pension age are maintained; In the case of women, the number of weeks of contributions is reduced to 1,000 weeks of contributions, which could be 850 depending on the number of children.
And with the approved initiative, contributions will be reduced by 50 weeks for each child up to a maximum of 3 children, that is, women who have 3 or more children will be able to retire with 850 weeks of pension contributions.
Another key aspect of what was approved benefits older adults in situations of extreme poverty and without a pension, who will receive around 260 thousand pesos (updated annually with inflation), to guarantee that they are not below the extreme poverty line.
Article 93 of the text approved in the third debate also stands out, where it establishes that the Contributory Pillar Savings Fund will be administered by the Bank of the Republic.
In addition, with the Pension Reform, old-age protection coverage from 26% to 86% of old-age protection will be guaranteed.
AA/MID/JC/CO
