Colombian Congress ratifies the reduction of retired health contributions
This past Tuesday, a reform crafted to help the retired cut down their expenses by reducing their health contributions three-fold (from 12% to 4%), according to a report in El Colombiano. The measure was approved in Congress by 57 votes. However, the reform is still pending the signature of Colombian President Juan Manuel Santos.
Colombia’s Ministry of Finance has advised against signing the bill due to the effect it would have on the budget and the lack of funding. Still, Congress ratified the law to help ease the burden on elderly Colombians who typically see earnings drop significantly in their later years. A group of more than 100 retirees were present at Congress to monitor the law’s passage and defend it.
The law saw controversy while it was debated in congress, as 60 senators recused themselves from the vote because they are retired, or their close family members were retired, and thereby their vote could have been biased. However due to the presence and pressure of the group of retirees in the chamber, the law was finally approved.
The reform is now pending approval from the president, who has yet to indicate whether he will sign the law.