Many Colombians may not realize they are eligible to receive a retirement payment if they have accumulated enough weeks through Colpensiones, compensation funds, or public and private employers, and they decide to move from a public system to a private pension fund such as Protección, Porvenir, Colfondos, or Skandia. This benefit is commonly referred to as a pension bonus.
The value shown at the header reflects the member’s contributions in both time and money. Its amount comes into play when integrating or increasing the worker’s capital in the Individual Savings Account, where pension funding is accumulated and managed.
The retirement bonus earns interest from the moment the affiliate transitions to the private fund. For example, if the switch was completed before December 31, 1998, the return is calculated as CPI plus four percent. If the switch occurred after that date, the return is CPI plus three percent, a rule explained by the head of the conservation team.
Legislation sets the validity of the bonus at sixty-two for men and sixty for women. The effects of invalidity and survivors’ pensions begin at the moment the insured experiences disability or death.
Who stands to benefit from this right? Individuals who contribute under a defined benefit scheme to an average premium pension plan for at least 150 weeks, which is the equivalent of three years, before joining a private pension fund are eligible.
Although the pension bonds are issued and paid through the Ministry of Finance and Public Credit Pension Bonds Department, other public institutions also account for pension bonds. These bonds can be used to support the payment of retirement benefits when they are liquidated by the relevant issuer.
Administrators of pension funds are responsible for advancing administrative procedures so that public and private employers report official information about workers’ work history. This enables a request to be made to the pension bond issuer regarding liquidation and payment. They must report accurate employment history to affiliates to verify consistency, ensuring the information aligns with the worker’s record.
Recognizing that the pension documentation guides how labor relationships and pension contributions are restructured across both public and private regimes, administrators recommend monitoring this information regularly rather than waiting until retirement ages approach. For example, when public agencies do not contribute to the social security system, consolidating multiple jobs can involve more paperwork and higher costs, which highlights the importance of careful record-keeping and proactive management of contributions.
CONTRAST
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Head of Protection
In the current global climate and ongoing political discussions, it is essential to discuss the future of the pension system with care, diligence, and responsibility.
For individuals considering early retirement, negotiating the retirement bonus involves evaluating several factors, including discount rates, the value of the payout, and the remaining time until standard repayment would occur.
Conditions for retirement under each regime
When saving for a pension, knowing the exact number of contributed weeks is crucial. In the Premium Regime administered by Colpensiones, eligibility typically requires reaching sixty-two years for men and fifty-seven years for women to access a pension. The system also requires a substantial accumulation of weeks, ensuring the individual meets the minimum threshold for pension calculation. Likewise, within the Solidarity and Individual Savings Regime managed by the pension fund administrators, sufficient capital must be built to finance a pension that exceeds a defined portion of the minimum wage.
End of the article notes that the information reflects the current framework and is intended to help readers understand how pension benefits are determined and adjusted across different regimes.