Democratic Center senator Miguel Uribe Turbay has issued several warnings about pension reform that the government will present to lawmakers. Photo: Screenshot/Twitter Miguel Uribe

Strong criticism launched Wednesday, March 15, the senator of the Democratic CenterMiguel Uribe Turbay, al texto de la reforma pensional que presentará el gobierno de Gustavo Petro al Congreso de la República en los próximos días que, de acuerdo con el parlamentario de oposición, no solo elimina las posibilidad de elegir el fondo de pensiones, sino Quoi increase the number of SEO weekstakes away the savings of Colombians with extraordinary faculties and puts retirement money at risk by deciding how to invest it.

“89% of contributors, ie pension fund savers, contribute up to 3 salaries, so this reform would practically put an end to pension funds. It’s the same thing they do with PSEs in health reform: they say they don’t eliminate them explicitly, but in practice they do. This government wants to put an end to the country’s second source of financing, since pension funds represent 25% of the public debt securities issued by the General Treasury of the Nation (TES)”, began by warning the parliamentarian from the Democratic Center.

He added immediately afterwards that today, SMIC contributors are better off with a private fund than Colpensiones, because to retire in the pension funds, 1,150 weeks and the retirement age are required, while to retire in the public fund (Colpensiones), 1,300 weeks and the retirement age are required .

“In other words, someone in the private fund could retire up to 3 years earlier than in Colpensiones. The pension reform removes this advantage because all contributors between 1 and 3 SMIC should go to Colpensions. Pensioners will have to contribute up to 150 additional weeks and with this pension reform they will be able to decide what investments private administrators should make, that is to say that the real intention of the government is to appropriate the savings of Colombians,” said the opposition parliamentarian.

In addition, continued the MP, this reform will require a minimum return from the administrators. “It’s totally irresponsible. Over long periods, managers show a positive return (one of the highest in the OECD, in fact), but over short periods, market conditions can lead to temporary losses. This is a measure that reinforces the government’s objective of ending private pension funds, thus endangering the savings of 18 million Colombians,” said Uribe Turbay.

Finally, the parliamentarian warned that this is a reform that gives the president extraordinary powers make any adjustments you wish to Colpensiones and the Department of Labour.

And finally, recalled the member of Congress in relation to all the announcements that have been made within the framework of the pension reform, President Gustavo Petro made a general request, on Tuesday March 14, for the Private funds will take the savings abroad and bring them to Colombia.

“This, for example, would allow him to take the savings from Colpensiones to use in his political project. Attention Colombians: for the president, requiring pension funds to bring back to Colombia the resources they have invested abroad is putting Colombian savings at risk. ANDs bring diversified resources today in investments all over the world in dollars for the most part, respecting the financial statutes, to a country which today, because of Gustavo Petro, has the greatest volatility, the greatest devaluation and the worst performance of the stock market, and also the greatest increase in risk premiums. Today, the country is going through a climate of uncertainty and mistrust that this government has deepened,” concluded the former candidate for mayor of Bogotá.

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