Colombia’s congress is planing to put a cap on pensions of the country’s wealthiest, financial paper, Portfolio reported Tuesday.
A pending law would drastically lower the maximum pension from 25 to 10 times the minimum legal wage, affecting approximately 3% of the population.
Portfolio reported that Colombians can currently receive a maximum pension of the equivalent of $7,860. If the new law is passed, this number would decrease to approximately $3,144 resulting in a 40% pension decrease.
“Nobody could receive a pension of more than 10 minimum monthly wages,” said Chamber representative
According to Burgos who filed for the new cap in pension, out of a population of 45 million people in Colombia, three percent of the country’s gross domestic product is spent on the 1.4 million people who collect pension.
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what the national budget spends “on education or national defense.”
In order for the law to change, the initiative must pass several congressional debates before being put into practice.