Pension system in Colombia and multilateral economic organizations: Some reform perspectives

Abstract

Currently, the Colombian pension system is facing a serious crisis associated with various factors, among which are the sustainability of the system, population aging, low coverage rates, and others. Nevertheless, it is possible to point out that this crisis dates back to the origins of the system, where the lack of foresight in the adoption of a sustainable model and the structural failures of the system generated, over time, difficulties that threaten its existence. Given this situation, initiatives that aim to cope with this crisis have emerged from different political and economic sectors and organizations. However, these proposals imply serious reforms to the current scheme and face some legal limitations. Therefore, the present paper analyses, through a documental tracking, the reform proposals to the general pension system that different international economic organizations have formulated for Colombia, their effects and implications based on the main issues underlying the system. All of this in order to highlight the need to accomplish legislative adjustments that allow for a structural reform of the pension system. To that end, proposals made by different organizations that best adapt to the challenges of the Colombian pension system are acknowledged.