Colombia's Finance Ministry proposes changing reserve calculation for minimum-wage pensions
Colombia's Ministry of Finance published a draft decree to regulate coverage of minimum-wage slippage risk in minimum pensions. The proposal removes the inflation-indexed component (35% of CPI) introduced by Decree 1485 of 2025 and returns to a calculation based on average real productivity growth over the past 10 years, with a floor of 0%. According to the Ministry, this would lower the cost of annuity policies and generate a potential benefit of 4.1 trillion pesos at 2025 prices.
In 45 seconds
- The draft would replace Title 17 of Book 2 of Part 2 of Decree 1833 of 2016 and would apply to immediate or deferred annuities equal to one minimum wage.
- The Ministry attributes higher policy costs to the parameter in Decree 1485 of 2025: an average of 642.9 million pesos in 2026 versus 473.7 million under the proposed rule.
- Annuity issuance fell 64% in the first half of 2026 compared with the same period a year earlier.
Read the full story at Revista Semana
IASummary generated by artificial intelligence from a story by Revista Semana. It may contain errors: the original source prevails.
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