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State council suspends transfer of 25 trillion pesos in pension reform
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The State Council provisionally suspended Decree 415 of 2026, which authorized the transfer of resources from private funds to Colpensiones. The measure affects 120,000 affiliates and completely freezes the transfer of nearly 25 trillion pesos.
Vice President Carlos Cuerpo defended budget modifications in the Senate and insisted European funds went exclusively to the Recovery Plan.
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The State Council suspended the transfer of 5 trillion pesos from pension fund administrators to Colpensiones. The government expressed deep concern over the impact on pension payments. President Gustavo Petro criticized the decision and announced legal action.
Economists criticize the SPD's proposal to tie retirement age to contribution years, warning of disadvantages for academics and the erosion of solidarity-based pensions. Amid ongoing reform debates sparked by Jens Südekum's idea and mixed public opinion, coalition frictions intensify ahead of the pension commission's report.
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Jaime Dussán, president of Colpensiones, defended the decree ordering the transfer of nearly $25 billones in savings from AFP to the public entity, dismissing concerns over liquidity and profitability. The measure affects 119,632 affiliates who switched regimes, as the financial sector warns of risks to savings. Decree 0415 of April 20 regulates these transfers amid judicial review of the pension reform.
Saxony-Anhalt's Minister President Sven Schulze has insisted on the states' right to have a say in planned social reforms. He called for close coordination and special consideration of East German concerns. He made these statements in an interview with Germany's Editorial Network (RND).
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At the Popular Savings Bank in San José de las Lajas, monthly pension payout days create endless lines and tensions among customers. Prioritized retirees overwhelm services, leaving other users unattended amid fears of running out of cash. Concerns over power outages and cash shortages dominate the daily scene.
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