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Government Seeks To Expand Role Of State Pensions

COLOMBIA
  • On Tuesday, the Government revealed details about the Pension Reform proposal in a meeting with Colombia’s main business association. Colombia’s labor ministry has sent a draft of its pension reform bill in which it intends to expand the role of state pensions in the nation.
  • The draft bill shows the intention to create a savings fund, which would be setup in order to avoid any market turbulence. Savings fund intended to buy TES; seeks to “avoid any impact on asset markets” that might arise from the pension reform bill.
  • Workers earning up to 3 times the minimum wage would automatically join state system. Pension contributions on wages over and above that amount could still go into the private system.
  • Stock of pension assets will continue to be managed by private pension funds.

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