President Gustavo Petro defended affiliates' right to transfer their pension savings from AFP to Colpensiones, responding to criticisms from the National Association of Financial Institutions (Anif). Anif warned that the Ministry of Labor's draft decree would pose fiscal risks by transferring nearly $25 trillion, impacting the pension system and public finances.
The Ministry of Labor published a draft decree modifying the rules for transferring resources from the Régimen de Ahorro Individual con Solidaridad (Rais) to Colpensiones. This proposal requires Administradoras de Fondos de Pensiones (AFP) to transfer, within 15 days after the norm's signing, the total accumulated savings of affiliates who opted for the transfer, regardless of whether they meet pension requirements.
The National Association of Financial Institutions (Anif) voiced concerns over the measure's negative effects on the pension system and public finances. According to Anif, while individual affiliates' rights remain unaffected, the immediate transfer of nearly $25 trillion from AFP to Colpensiones would diminish resources for the Fondo de Ahorro del Pilar Contributivo (Fapc), intended to fund future pensions for workers earning up to 2.3 minimum wages. The think tank noted that these funds would cover current obligations, hastening the fund's depletion and necessitating future coverage from the General National Budget, potentially leading to higher taxes or public spending adjustments.
Anif also warned of impacts on government borrowing costs: about 70% of the $25 trillion, or $17.5 trillion, is invested in public debt securities. Rapid liquidation would create a massive supply, lowering prices and raising interest rates, making state financing more expensive. Additionally, it highlighted a potential legal conflict with Article 76 of Law 2381 of 2024, which mandates that resources in individual accounts stay with AFP until the pension right is consolidated.
In response, President Gustavo Petro defended contributors' right to immediate transfer of their savings, as they own them. He questioned whether Anif and private guilds are denying this right or if funds lack capacity. He encouraged affiliates to pursue legal action if their rights are violated and announced a meeting with the Financial Superintendency. Petro deemed any rejection of voluntary transfers unconstitutional, requested Constitutional Court approval of the pension reform, and called Asofondos to dialogue on system operational capacity.
This debate underscores tensions between individual savings rights and the long-term fiscal sustainability of the pension system.
