Women with children would shorten the weeks to retire

Labor Minister Gloria Inés Ramírez assured that one of the proposals being analyzed to be included in the pension reform is to reduce the necessary weeks of old-age pension contributions for women who have children.

According to Minister Ramírez, this initiative would be a recognition of the care work of women.

“We are working to include recognition for women so that for every child raised, they get at least one year of recognition for retirement,” he said.

In Colombia, there are two pension schemes, the Media Premium Regime (RPM) which is public and administered by Colpensiones and the Individual Savings with Solidarity Regime (RAIS) which is administered by private pension funds (Provenir, Protección, Skandia and Colfondos).

In the RPM, to retire, women must have contributed 1,300 weeks and be 57 years old, while men must also have the same number of weeks but be 62 years old.

There is no minimum number of weeks for the RAIS. The pension will depend solely on the money saved and the income obtained with a capital sufficient to finance a supplement of at least 110% of the minimum wage. If, for whatever reason, the member does not reach the required capital and reaches retirement age (female aged 57, male aged 62), he will have access to the pension with 1,150 weeks of contributions.

Regarding this initiative, Julio César Iglesias said that while the initiative aims to improve pension benefits, it should be taken into account that the financial factor is a constraint on the pension system.

He recalled that women are currently retiring at a younger age than men and their average life expectancy is higher than theirs. “These factors are placing an increasing burden on financial systems,” he explained.

For those in the know, these measures must in reality be supported financially, taking into account the current state of the pension system.

“We share the spirit of improving citizens’ pension benefits, including women’s, but the problem is how we finance that and there is a high dose of populism on the part of the minister in proposing a measure that was not included in the financial context of the state for the pension system,” he stressed.

Source: El heraldo