Colombian Pension Laws: Requirements & Benefits
Colombian Pension Laws: Key Requirements and Benefits
This document outlines the requirements and benefits for various retirement pensions under Colombian law, including specific acts and agreements that have shaped the pension system over time.
Law 33 of 1985: Retirement Pension for Public Servants
Requirements
- Age: Men and women 55 years.
- Contribution: 20 years of service to the State.
Percentage
75%
IBL (Base Liquidation Income)
Calculated as the average of wages from the past 10 years or an entire working life (if more than 1,250 weeks and favorable).
Act 71 of 1988: Retirement Pension for ISS & Other Welfare Funds
Requirements
- Age: Men: 60 years, Women: 55 years.
- Contribution: 20 years of contributions paid to the ISS or any public sector entity.
Percentage
75%
IBL (Base Liquidation Income)
Calculated as the average of wages from the past 10 years or an entire working life (if more than 1,250 weeks and favorable).
Agreement 049, 1990 (Decree 758): Social Security Pension
Requirements
- Age: Women: 55 years, Men: 60 years.
- Contributions: 500 weeks of contributions in the last 20 years OR 1000 weeks at any time.
Percentage
45% for the first 500 weeks contributed, and 3% for every 50 additional weeks, up to a ceiling of 90%.
IBL (Base Liquidation Income)
Calculated as the average of wages from the past 10 years or an entire working life (if more than 1,250 weeks and favorable).
Impact of Legislative Act: Transitional Regime
Transitional Regime Details
The transitional regime was limited to July 31, 2010, and ran until December 31, 2014, for those who had 750 weeks upon the Legislative Act’s effect.
What happened to the transitional legislative action?
The transitional arrangements set by Law 100 of 1993 ended in 2014. The reform approved that the scheme would end on July 31, 2010, anticipating its elimination by four years.
How was the transition to reform?
To continue applying the transitional regime, it was required to have contributed at least 750 weeks or the equivalent in length of service upon the legislation’s entry into force, which would keep the scheme until 2014.
Old Age Pension Scheme: Average Premium Modality
Law 100 of 1993
Requirements
- Age: Men: 60 years, Women: 55 years.
- Contributions: 1000 weeks.
Percentage
- 1000 weeks: 65%
- 1050 weeks: 67%
- 1100 weeks: 69%
- 1150 weeks: 71%
- 1200 weeks: 73%
- 1250 weeks: 76%
- 1300 weeks: 79%
- 1350 weeks: 82%
- 1400 weeks: 85%
IBL (Base Liquidation Income)
Calculated as the average salary on which contributions were made during the last 10 years, or the entire working life if more than 1,250 weeks and favorable.
Law 797 of 2003
Requirements
- Age: Women: 55 years, Men: 60 years.
- As of January 1, 2014: Women: 57 years, Men: 62 years.
- Contributions (Weeks):
- Year 2003: 1000 weeks
- Year 2004: 1000 weeks
- Year 2005: 1050 weeks
- Year 2006: 1075 weeks
- Year 2007: 1100 weeks
- Year 2008: 1125 weeks
- Year 2009: 1150 weeks
- Year 2010: 1175 weeks
- Year 2011: 1200 weeks
- Year 2012: 1225 weeks
- Year 2013: 1250 weeks
- Year 2014: 1275 weeks
- Year 2015: 1300 weeks
Percentage
The percentage is calculated as follows:
r = 65.50 - 0.50 * S
r= percentage of income settlement.S= number of IBL in SMLMV (Minimum Legal Monthly Wage).
Under this formula, the minimum percentage varies between 55% and 65%, and the maximum between 70.5% and 80%. For additional weeks beyond the minimum required, the percentage increases by 1.5% for every 50 weeks.
IBL (Base Liquidation Income)
Calculated as the average wages on which contributions were made in the last 10 years, divided by the SMLMV, or the entire working life if favorable and 1250 weeks or more.
Transitional Arrangements – Article 36, Law 100 of 1993
Eligibility as of April 1, 1994
- Men: 40 or more years old.
- Women: 35 or more years old.
- Service/Contributions: 15 or more years of service or contributions (for both men and women).
Duration
Until December 31, 2014.