Many Colombians do not know that they are also entitled to a salary if they have contributed weeks worked in Colpensiones, compensation funds, public or private companies, and want to switch to a private pension fund (Protección, Porvenir, Colfondos and Skandia). Bonus pension.
This value header represents the member’s contributions in time and money. Its value serves to integrate or increase the worker’s capital in the Individual Savings Account (CAI), where the pension will be financed.
“The retirement bonus generates interest for the affiliate from the first time they switch to Protection; for example, until the moment when organizations pay the bonus. If the affiliate moved before December 31, 1998, a return of CPI + 4% would be considered. If handed over after this date, IPC will be +3%,” said Juan David Correa, Head of Conservation.
The law stipulates that the age of validity of the bonus is 62 for men and 60 for women. Invalidity and survivors’ pension takes effect at the time of the insured’s disability or death.
Who can benefit from this right? Persons who contribute with defined benefit to an Average Premium Pension Plan of 150 weeks, corresponding to three years, before being tied to a private pension fund.
Although Millet is the issuer and payer of the pension bonds through the Ministry of Finance and Public Credit Pension Bonds Department (OBP), there are also pension bonds accounted for by different public institutions and organizations.
” AFP They have the responsibility to advance administrative procedures for public and private employers to report official information on the work history of their workers. In this way, a request can be made to the OBP or the pension bond issuer regarding its liquidation and payment. “They must report information about their employment history to their affiliates to verify their consistency,” said María Lorena Botero, director of Pension Benefits at Porvenir.
Understanding that this date is the document that serves as a guide for restructuring labor ties and pension contributions in both public and private regimes, AFPs recommend that you monitor this information constantly and not only do it when you are close to retirement. age.
“For example, when there are public agencies that don’t contribute to the Social Security Institute (ISS), for example, it’s more costly to consolidate jobs than paperwork,” said Jenny Aguirre, vice president of operations. Colombian Association of Pension and Severance Fund Managers (Asofondos).
If you want to retire early, you have to bargain for the retirement bonus. Here, factors such as discount rates, the value of the check, and the remaining time for normal repayment will be taken into account.
Conditions for retirement in each regime
If you’re saving for your pension, it’s important to know how many weeks you’ve contributed. In the Media Premium Regime (RPM) administered by Colpensiones, members must be 62 years old for men and 57 years old for women to access a pension.
You should also cite 1300 weeks; ie about 26 years. Likewise, in the Solidarity and Individual Savings (Rais) Regime administered by the AFPs, sufficient capital needs to be raised to finance a pension that exceeds 110% of the minimum wage.
Source: Lare Publica