State Council suspends express transfer of pension savings from private funds to Colpensiones
In a last-minute decision, the State Council halted the National Government's intentions to massively move the savings of thousands of workers...
TL;DR
- The State Council has suspended a government decree aimed at transferring pension savings from private funds (AFPs) to Colpensiones.
- The decree sought to accelerate the transfer of approximately $25 trillion, with specific short deadlines for AFPs to move funds.
- A lawsuit argued the decree represented an overreach of regulatory power, potentially rewriting existing law and creating financial risks.
- The State Council found that the government may have exceeded its authority in issuing the decree.
- The ruling ensures that pension savings remain in private funds until individuals meet retirement requirements, preventing a 'massive and premature patrimonial transfer'.
- This is a provisional measure while the decree's legality is thoroughly examined.