Petro Bill Seeks to Slash Role of Private Colombia Pension Funds
Oscar Medina, Bloomberg News
(Bloomberg) -- Colombia’s government is proposing to redirect the pension contributions of millions of workers away from private managers and into the public system, while setting up a fund intended to neutralize the impact this would have on the local bond market.
Under the draft bill, contributions from workers earning as much as three minimum wages (about $730) per month would automatically be paid into the public system. Workers could still pay into private funds with contributions that exceed that amount, according a statement from the Labor Ministry.
Currently, all workers can choose whether to enroll in the public or private systems.
The leftist government of President Gustavo Petro is trying to overhaul Colombia’s welfare state this year with an ambitious set of bills whose fate is likely to determine the future of his seven-month old administration.
If Petro can get the bills through, it will strengthen his coalition and the position of his allies ahead of local elections in October. Defeats, on the other hand, could weaken his government, and make it hard for him to achieve his goals of transforming the nation’s conservative economic model.
More:
https://www.bnnbloomberg.ca/petro-bill-seeks-to-slash-role-of-private-colombia-pension-funds-1.1895530
Good luck, President Petro.
