El pilar no contributivo y su rol en el sistema de protección a la vejez: Colombia mayor social

Abstract

The demographic transition and the rapid process of population ageing in Latin American countries will cause a continuous increase in the number of old-age persons in vulnerable conditions over the next decades. The contributive pension systems face a structural barrier to offer access to workers beyond the formal sector, which is specially problematic in countries like Colombia, with large shares of informality in their labor markets. In these contexts, the role of expanding coverage falls on the non-contributive and semi-contributive pillars. This document analyzes three characteristics that a well-designed non-contributive subsidy should have: the amount of the subsidy, its focalization, and its interactions with other pillars. Considering the best practices and the experiences of Chile, Brasil, Bolivia and New Zealand, we make a proposal of reform of the Colombian non-contributive program, Colombia Mayor, with emphasis in the interaction of the direct subsidy with the semi-contributive pillar (BEPS).