President Gustavo Petro has proposed expanding the assistance bonuses for older adults who cannot receive a pension in productive life and do not have a regular income. The government will deliver a monthly subsidy of 500,000 pesos, which will come from pension reforms that must be approved by the Legislative Power. This is what is known.
“Through a bond, which instead of $80,000, becomes $500,000 and makes it possible for the old man who is not retired today to overcome the poverty line”President Petro said during the inauguration of 7 new officials of his government.
WHO ARE BENEFICIARIES AND HOW WILL THE GUSTAVO PETRO GRANT BE CHARGED?
The aid would be granted to three million grandparents in the country and would involve an expense of 18 billion pesos a year.
“There are three million older adults who multiplied by $500,000 clearly implies a pension reform. That is to say, that part of the contributions that remain in private funds enter Colpensiones, originating the pillar system”Petro explained.
Gustavo Petro’s ad has appeared in his eventual winning presidential proposal, but it will not fully cover all older adults without a pension.
On May 9 of this year, the Treasury Department of the Duque government calculated that 5.6 million people in Colombia have reached retirement age but cannot receive the monthly payment for various reasons.
The previous government calculated and said that if 5.6 million people received half the minimum wage, the 2023 expenditure would be 27.9 billion pesos.
“It is assumed that this impact is mitigated by the contributions of older adults who, not receiving a pension, contribute the balances of their pension savings to obtain the old-age benefit”had conceptualized the previous government.
President Petro unknowingly announced his pension reform project, which took place during the inauguration of the directors of the Ministry of Social Welfare, Icfes, Icbf, Agustín Codazzi and the Dane Geographical Institute, as well as advisors for Women’s Rights and the President of the Agricultural Bank.
WHAT WOULD THE PENSION REFORM FOR OLDER ADULTS DEAL WITH?
In practice, it would be sought that in each month resources of 1.5 billion pesos are taken from the contributions of the affiliates to the private funds, a fact that since the presidential campaign was highly questioned by Asofondos, the union that represents these entities.
Likewise, in the presidential debates prior to the elections, the president of the union, Santiago Montenegro, asked the presidential candidates to give a rigorous, responsible, informed discussion, and “especially thinking about the well-being of Colombian workers.”