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Around one of the most sensitive issues for Colombians, pensions emerged a proposal launched by the Governor of Sucre, Héctor Olimpo Espinosa and that, if received, it would be established by decree, arguing that within the economic emergency of the covid-19, more than 185,000 jobs in the country’s public sector.
The president of Sucreño maintains that, within the universe of public servants, there are 2 percent who are either of forced retirement age (the public sector gives a margin up to 70 years old) or have pension status (9 percent of women and 4 percent of men), who, if a measure is created, they would automatically be retired, which would help open up spaces for young labor.
(You may be interested: The decree that transfers pensions from private funds to Colpensiones)
In the support of the proposal it is presented “the new reality of the economic emergency product of the covid-19 “, which, according to the president, “impacts the incomes of the departments; because the two monopolies: lotteries and distilled liquor (brandy and rum)” from which the income of these territorial entities come, are among the most affected.
In addition, adds the governor, “the tax on cigarettes, beer, imported liquor, registration, vehicle and the tax on gasoline, will decrease significantly in the absence of consumption. In the municipalities, the income from taxes will also be affected. “
The way to keep pace with the income on which the territories depend is with household consumption, which in turn is achieved with income from employment. For this reason, the president maintains that the proposal would provide a balance and would inject dynamism into the economy, because pensioners would have the enjoyment of their right, with income; while new sources of work would be opened to renew the workforce in the public sector. That is, a double population group with income, which is beneficial for the economy to move.
The legal context
It must be remembered that the social security system in Colombia, in general, comes from Law 100 of 1993, but in terms of pensions, Law 797 was introduced in 2003, in which it was established (paragraph 3 of article 9 °) a term so that once the requirements for access to the economic pension benefit are met, the worker has thirty (30) calendar days to initiate the respective procedures for its recognition. These requirements are: 57 years in the case of women and 62 years in the case of men, plus 1,300 weeks of contributions in the public system, which is the one in the middle of this proposal.
That a regulation be generated, in which the forced retirement age, only workers who have not obtained the requirements to retire can arrive and guarantee them that they obtain the pension
However, later, in Law 1821 of 2016, a differentiation was added for public servants, according to which, “the maximum age for removal from office of people who perform public functions will be seventy (70) years. Once fulfilled, the immediate removal of the position they hold will be caused without being able to be reinstated under any circumstances. (…) “.
With this rule, many public servants extend their working lives, without choosing to go out and enjoy their well-deserved rest.
The proposal
According to what Héctor Olimpo Espinosa has sustained, the specific proposal is “that a regulation be generated, in which the age of forced retirement, only workers who have not obtained the requirements to retire can arrive and guarantee them that they obtain the pension. “
Meanwhile, “anyone who has the pension requirements should not reach the age of forced retirement, but that, with the simple fulfillment of the requirements, there is an objective reason for retirement from service, respecting the inclusion of pensioners on the payroll , with or without voluntary authorization. “
At the national level, 38% of state servants are in an age range of 50 to 62 years and 4% are over 62.
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In the territorial order, 40% of the servers are in the range of 50 to 62 years and 6% are older than 62.
It is from this national panorama that it follows that “2% are at the age of forced retirement; 9% of women and 4% of men linked to the public service have reached the age of pension,” according to the document. of support.
The controversy
The controversy around the retirement age from working life is strong, since every time there is a hint of a pension reform, the most difficult issue is to increase the pension age, so that people work longer and In the case of women, they can thus have an allowance that allows them to have a better quality of life.
Citizens advocate that the pension is not raised and, however, when they obtain the right, they prefer to continue working. This, for some analysts, has several reasons: “retiring means a drop in income. At retirement age, people still have obligations, mortgage payments, children’s education, among others, “says one source.
Similarly, there is a psychological component at the time of retirement because “many are afraid of not being active,” added the source.
And there is no lack of cases in which Companies prefer to retain adults for fear of less expertise from the young workforce.
The truth is that in the public sector a longer duration of working life is evident, since in Colpensiones, the average retirement age of women is 61, despite the fact that they can do it from 57, and that of men it is at 65, when the age limit for them is 62 years. And in terms of low income, In the public pension insurance system, the income of a pensioner is reduced between 20 and 40 percent, confirmed the entity.
For Luis Carlos Reyes, an expert in development economics, familiar with the pension issue, the proposal is interesting, insofar as it is a redistribution of income: the pensioner is going to win and the one who hires a new one is also.
Reyes points out that the issue of reducing monthly income to people who are forced to retire is very true, although, it is assumed that “the pensioner requires less the part of income that he will stop receiving compared to the one who is going to get the free job “.
With all these elements on the table, the subject requires a magnifying glass and an in-depth analysis of whether or not a measure like these can come from a decree in the midst of the current state of emergency, or should wait and be evaluated in the pension reform. that at some point the Colombian Government will have to present.
MARTHA MORALES MANCHEGO
ECONOMY AND BUSINESS – THE TIME
Twitter: @marthamoralesm
