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The pension reform was approved by the national government and will change the retirement model in Colombia.
This fundamental change, which will take effect on July 1, 2025, will create three situations for Colombians, depending on age and when they make payments.: The first is the transfer opportunity, which allows you to switch between pension systems after double advice, depending on what is most beneficial for your pension future, whether from a public pension system to a private pension system or vice versa. The second concerns the transition system and the third concerns those to whom the new law applies.
Read: AI ranking the best countries for retirees: does Colombia make the list?
In the framework of the teaching strategy for understanding pensions developed by Porvenir, María Lorena Botero, Pension Benefits Manager at the Porvenir Pensions and Severance Payments Administration, Workers are advised to review their work history and request it from their pension management agency to find out the number of payment weeks and understand their specific situation. Combined with new pension model.
In this sense, it explains what options are available to contributors:
Transfer Opportunities
Workers must choose the system that best suits them (Colpensiones or pension administrators like Porvenir) to receive pension benefits, a one-time possibility that will depend on their specific circumstances.
María Lorena Botero, Pension Benefits Manager at Porvenir, the Pension and Severance Payments Administration,
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It applies to members who are less than 10 years old from pensionable age and, if they are women, must have 750 weeks or more of contributory time and be 47 years old when the law is enacted. If you are a man: You must have contributed for 900 weeks or more and be 52 years old or older when the law is enacted.
READ: Pension reform: Who will start paying into Colpensiones?
For this option, the worker must go through a double proposal process, which consists of contacting the Colpensiones and the pension administration to which he or she belongs, both entities having to provide clear and accurate information about each pension plan in order to make an informed decision about their respective pension plans for the future. That is, the transfer opportunity has two ways of application: from a private regime to a public regime, or vice versa.
This dual assessment must be completed within two years of the law’s enactment.no cost, no third-party support required.
Regardless of the system chosen by the member, the conditions for pension benefits will be current, that is, it will continue to be in accordance with the pension system defined by Law 100 of 1993: In a pension manager like Porvenir, there are two options to obtain a pension: accumulate 1,150 weeks of contributions at the age of 57 if you are a woman; accumulate contributions at the age of 62 if you are a man; or reach the necessary capital to obtain a pension of 110% of the minimum wage (SMMLV) before pensionable age.
Pensioners
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If you decide to move to or continue to stay in Colpensiones, you will be required to have reached pensionable age for 1,300 weeks.
Transitional regime: In the transitional system, the pension conditions and requirements set out in Law 100 of 1993 will be respected, i.e. the new law will not cover members who meet the following requirements: 750 weeks of contributions or more if you are a woman, or 900 weeks of contributions if you are a man as of July 1, 2025, you will be able to pay more weeks of contributions regardless of your age.
New Law: The new law applies to affiliates from July 1, 2025 that:
– Female, with less than 750 weeks of contribution
– Male: Contribution time less than 900 weeks
Under the new law, Colpensiones and managers will supplement each other to establish workers’ pensions: the first 2.3 minimum wages (equivalent to $2,990,000) must be paid to Colpensiones, and the remainder will go to the AFP Just like the future.
For those who can afford to save, it is important that they decide now to supplement their pensions through a voluntary pension administrator, such as the scheme offered by Porvenir.
Pensioners in Colombia
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Under the new law, pensions will be recognized and paid only by Colpensiones and will be calculated based on the contributions of Colpensiones plus the capital saved and the returns generated by the management of managers such as Porvenir.
The retirement requirement is 1,300 weeks of contributions and an age of 57 for women and 62 for men.
Porvenir said it was important to remember that women would be able to retire in 1,000 weeks from 2036. The reduction in retirement contribution weeks would be phased out from 2025.
Holman Rodriguez Martinez
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