- Senator Gustavo Adolfo Moreno, behind the proposal, argues it ensures financial viability amidst government pension reforms.
- The reform aims to balance funding between public and private systems, with significant implications for investment and returns.
The affected funds, which collectively manage approximately 405 trillion pesos and serve 19 million clients, previously charged only an upfront fee without recurring management costs.
Senator Gustavo Adolfo Moreno of the En Marcha party, who spearheaded this amendment, emphasized that this change allows private pension funds to maintain financial health. This is crucial as the current government’s pension reform seeks to shift more workers into the public system, potentially diminishing private fund revenues. The proposal, yet to be discussed in detail, does not specify the exact duration for these new fees, typically quoted on an annual basis.
Amid criticisms from President Gustavo Petro regarding the efficacy and investment strategies of private pension funds, this legislative change is seen as a pivotal moment for Colombia’s financial sector. The Labor and Finance ministries, along with Asofondos, representing the industry, have yet to comment. The full pension reform bill, which adjusts the salary contributions between the public and private sectors, is expected to pass the Senate soon and will be deliberated in the lower house thereafter.
