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Welfare Reform on the Web (April 2003): Pensions - Overseas

THE COLOMBIAN PENSION SYSTEM AFTER THE REFORM OF 1994: AN EVALUATION

K J Kleinjans

International Social Security Review, vol. 56, no. 1, 2003, p.31-52

In 1994 Colombia reformed its pension system by introducing a private pension programme alongside the previous public one. Insured persons can choose with which of the two programmes to affiliate and switch between them every three years. Evaluation reveals that effective coverage and benefit levels are low, costs in the private programme are high, and insured persons are often not fully informed about how the system works. The system is inequitable and the uninsured population bears part of the financial burden. The public programme is financially not sustainable.

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