Pensions in Colombia | Reasons Worry About Retirement Savings | Economy

the President of Colpensiones, Jaime Dussanis currently the target of criticism after a statement in which he said Colombian pension savings deposited at Colpensiones could be used for infrastructure works such as a train between Buenaventura and Barranquilla.

(Petro denies the president of Colpensiones).

His statements caused such a stir that the President, Gustavo Petro, and the Minister of Finance, José Antonio Ocampo, they had to come out to deny Dussán on social networks and clarify the situation.

Although the government has disqualified the statements of the president of Colpensiones, experts and ordinary citizens view these actions with concern, on a subject as sensitive as pensions.

Beyond the use of retirement savings, Dussán’s statements raise other serious concerns. He also said that private funds are not retiring and he is firing the bank as “usurer”a situation that could generate conflicts between the actors of the financial sector and the Government.

Dussán said the government is considering the creation of a single pension system “and a transition scheme, so that everyone who is eligible to retire joins Colpensiones.”

His statements would go against the campaign proposal of current President Gustavo Petrowho has always spoken of a system of pillars, in which private funds participate, and not of ending it as Dussán’s statements suggest.

(Colpensiones: criticism of the use that would be made of retirement savings).

He also stated that “Private pension funds receive savings but do not retire”a fact that is not true and that could generate doubts and misinformation among those who have their savings there.

Faced with the use that would be made of pensions for infrastructure works, the president of Colpensiones referred to pension savings and not contributions, that is to say that what people have saved in the fund would be used and not what is deposited from month to month.

Add that these resources could be used “so as not to borrow from entities like the World Bank, the International Monetary Fund or usurious banks when we can have them (the resources)”.

Here he insinuates using pension money as credit, which experts say sets off alarm bells and generates contradictions with what President Petro has proposed.

The President assured that “It is not true that the savings that the government makes today on its transfers to Colpensiones will be spent tomorrow, with the reform, on infrastructure.”

According to Petro, it would not be the money that Colombians have in the funds that would go to infrastructure projects, but what would eventually be saved by not having to transfer money from the national budget to cover the expenses of retreat from Colpensiones.

(“Neither feet nor head”: Ocampo on statements by Jaime Dussán).

Juan Carlos Echeverry, former finance minister and former presidential candidate, said in this regard: “What gives Mr. Dussán the right to squander everyone’s savings? Invest my 40-year-old retirement savings in a train between Buenaventura and Barranquilla, impossible to build and with negative profitability?” It is tantamount to throwing our savings out the window..

The former Minister of Finance, Juan Camilo Restrepo Salazar, described for his part as “capital nonsense” Dussán’s proposal and said that this “pharaonic work” He would be worth up to 700 billion pesos.

(The pillar scheme that Petro offers for the pension system).

Contrary to what the president had said about the pension reform, Dussán also said there would be only one public administrative entity in the system. “We will create a single pension system in Colombia and look for a transition regime so that everyone who has the right to retire joins Colpensiones”said.