Pension reform
Pension commission delivers 33 recommendations to Merz and Bas
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The pension commission has presented its 33 proposals on old-age provision. The recommendations will be handed over to Chancellor Friedrich Merz and Labor Minister Bärbel Bas on Tuesday.
The German trade union confederation has called for mandatory company pensions for all employees as part of the planned pension reform. DGB chair Yasmin Fahimi advocated for at least partial employer funding.
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Osvaldo Macías, who led the Pensions Superintendency for ten years, spoke about his exit from the post in March and his role in the pension reform approved in 2025.
President Gustavo Petro defended his pension reform in response to Skandia CEO Santiago García, who warned about minimum wage hikes above inflation. Petro stressed that long-term sustainability relies on national wealth and productivity, not real wages. He highlighted that pensions must adjust to the vital basket.
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The Superintendency of Pensions has opened a public consultation for a new regulation allowing Pension Fund Administrators (AFPs) to subcontract most of their functions, except investment management. This step aims to boost competition in the pension sector and ease entry for new players. AFPs will retain full responsibility for outsourced services.