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[BUSINESS] · Colombia · 4 sources

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Colombian workers move from Colpensiones to private pension funds

More than 9,000 affiliates of Colombia’s public pension system, Colpensiones, have transferred to private pension fund administrators, reversing a recent trend of workers moving from private to public schemes. The shift is occurring amid debate over the pension reform that was approved through Law 2381 of 2024, which created a transition stage and opened a transfer opportunity for affiliates who meet specific conditions.

The private funds operate under the Individual Savings Regime with Solidarity (RAIS), allowing contributors to see their savings accumulated in an individual account. Workers cited motivations such as seeking direct individual savings, expectations about future pension amounts, and the new options created by the reform. The movement reflects uncertainty among those nearing retirement, younger contributors, and others evaluating the advantages and risks of staying in the public regime versus switching to a private administrator.

Entities

Colombia · Colpensiones · Law 2381 of 2024 · Private pension fund administrators (AFP) · private pension funds (AFP)

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