Is it legal to condition the payment of a pension to a worker ?, says State Council – Cortes – Justicia



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The Council of State declared legal the norm by means of which the Government conditioned the payment of pensions to that the pension fund, pension fund or the employer has transferred to the managing entity of the pension the monies of the contributions that, it is anticipated, will be necessary to cover the allowances of the retirees.

This rule, an article of Decree 1474 of 1997, was sued because, in the opinion of the plaintiffs, it resulted in hindering access to the employees’ pension, imposing unreasonable burdens on them.

(Also read: Who inherits the pension: current or former partner?)

However, after studying the case, the Council of State considered that the Government’s decision does not violate the Law, which requires that The payment of the pension is only made effective when it is verified that the bond or pension title, to the satisfaction, has been transferred to the administrator of the pension.

For the high court, what the lawsuit does is, in order not to affect the financial viability of the general pension system, “reiterate that the weeks worked, or quoted in the company or entity issuing the title, will be taken into account or computed for effects of making the provision payable, once the updated value of the same is canceled ”.

(It may interest you: Who responds if weeks disappear or the company did not pay a pension?)

The weeks worked or quoted will be taken into account or computed, for the purposes of making the provision payable, once the updated value of the same is canceled

Furthermore, the high court indicated that There are severe penalties for funds, savings banks or employers that fail to carry out the transfer of securities., as provided by the Constitutional Court.

For these reasons, the Council of State concluded that the rule was not contrary to the law nor did it give rise to the possibility that employees could be exposed to not enjoying their pension rights.

JUSTICE
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