In a surprising turn from its previous stance, Colpensiones now asserts readiness to shoulder the responsibilities mandated by Law 2381 of 2024, establishing a new Comprehensive Social Protection System for Old Age, Disability, and Death of common origin. Initially expressing doubts about the financial viability of certain aspects of the new model earlier this week, the institution now claims it will have the necessary resources – both from contributors and the National Budget – to fully implement the provisions outlined in the regulation.
“‘The entity is prepared to assume its responsibilities and will have resources from contributors and the National Budget to fulfill the obligations stated in the regulation,’ they stated in a press release.”
However, Colpensiones clarifies that a final verdict on the law’s constitutionality and official enactment lies with the Constitutional Court. One key feature of this new system is Solidarity Basic Income – a pivotal component of the solidarity pillar aiming to ensure a monthly income for elderly individuals without formal contribution capacity. As per the law, this benefit will be at least equivalent to the certified extreme poverty line for 2023, adjusted based on the Consumer Price Index (IPC) variation in 2024 certified by DANE. From 2026 onwards, the solidary bonus value will automatically adjust annually on January 1st according to the previous year’s IPC.
“While migrating towards solidarity support pillars, current Colombia Mayor program beneficiaries will continue receiving their payments. Once meeting requirements under the new scheme, they will transition into Solidarity Basic Income.”
The bulletin also specifies that The Administrative Department for Social Prosperity (DPS) will handle Solidarity Basic Income payments funded by both National Budget allocations and funds collected within Fondo de Solidaridad Pensional sub-account.
“This design aims to ensure program financial sustainability, particularly during its massification initial phase. President Gustavo Petro’s government central goal is expanding this benefit to almost three million vulnerable individuals.”
To advance this objective further, Resolution 0809 dated May 17th, 2024 issued by DPS has already mandated a progressive increase in bonus value financed through national budget contributions and existing solidarity funds available.
Though not directly addressing fiscal implications in its bulletin content implementation reference; it does affirm that much of its reliance would be on permanent public resources while Colpensiones would undertake additional operational functions parallelly with DPS.
This new system merges contributory and non-contributory elements intending to diminish old age inequality ensuring basic incomes meanwhile reinforcing solidarity principles. However long-term sustainability remains contingent upon Constitutional Court decision-making coupled with future budgetary support.
With Colpensiones shifting from warning about financial risks towards asserting readiness signifies all systems are “go.” Ultimately awaiting court’s final say on reform poised to revolutionize country’s pension system landscape.
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