Government Faces Criticism Over Draft Decree on Pension Transfers
The National Government faces strong criticism after a draft decree ordering the transfer of between 25 and 27 trillion pesos from private funds to Colpensiones became known. The measure, questioned by various sectors, causes alarm among administrators and social security experts.
TL;DR
- A draft decree from the National Government proposes transferring 25 to 27 trillion pesos from private pension funds to Colpensiones.
- This move has generated strong criticism and alarm among private fund administrators and social security experts.
- Colfondos warns that the initiative could endanger the savings and pensions of millions of affiliates.
- The legality of the orders from the Ministry of Labor is being questioned, with Asofondos president stating they are not legal under current law.
- The draft decree requires private funds to transfer resources of affiliated individuals who are less than 10 years from retirement.
- There is concern that these transferred resources, intended for savings and investment in the contributory pillar, could be spent immediately by Colpensiones and funded by general taxes if Colpensiones lacks funds.
- The decree mandates a 15-day transfer period once it comes into effect, increasing tension between the executive and private funds.