By Which The National Savings Fund Reorganized Its Legal Nature Is Transformed And Other Provisions

Original Language Title: Por la cual se reorganiza el Fondo Nacional de Ahorro, se transforma su naturaleza jurídica y se dictan otras disposiciones

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LAW 432
1998 (January 29)
Official Gazette No. 43227 of February 2, 1998
By which the National Savings Fund reorganized its legal nature is transformed and other provisions. Summary

Term Notes

ARTICLE 1o. LEGAL NATURE. The National Savings Fund, a public establishment created by Decree-Law 3118 of 1968, is transformed under this Act in Industrial and Commercial State financial nature of the national order, organized as a credit institution of a special nature, with legal, administrative autonomy and independent capital, and consequently its budget and personnel regime will be to the companies on this class. It will be linked to the Ministry of Economic Development and * the composition of the Board will be pointing this law. Effective Notes

The entity transforms continue denominating National Savings Fund *. Will address the main city of Santa Fe de Bogota and establish branches in other regions of the country, when required, the number of members attending, with the authorization of its Board of Directors. Effective Notes

The rights and obligations of the National Savings Fund, the date of enactment of this law will continue and in charge of the Industrial and Commercial State in favor.
PARAGRAFO. For tax purposes, the National Savings Fund is governed by the provisions for public establishments. Effective Jurisprudence

Article 2.
. OBJECT. The National Savings Fund efficiently manage layoffs and contribute to solving the problem of housing and education of members, in order to improve their quality of life, becoming an alternative social capitalization.
PARAGRAFO. The allocation of credits granted by the National Savings Fund will be attending the following criteria:
a) regional distribution of resources according to the number of members per department;
B) composition wage affiliates;
C) allocation system of individual credit score. Effective Jurisprudence

ARTICLE 3o. FUNCTIONS. The National Savings Fund will have the following functions:
a) To collect severance pay of members in accordance with the provisions in force:
b) Timely paying the unemployment benefit to members;
C) Protect such assistance against loss of purchasing power of the currency, in accordance with the provisions of this Act;
D) Overtaking criterion of social justice and fairness in the award, using available resources, educational programs and mortgage credit to help solve the problem of housing and education of members, for which it may enter into agreements with the Family Compensation and entities of the social economy, and with public or private, national or international organizations. To fulfill its purpose and functions, the National Savings Fund not directly advance or will hire housing construction; Effective Jurisprudence

E) Manage national resources of family housing allowance are allocated for the construction, acquisition and release of lien housing with social interest of members, in accordance with the Law on the 3rd. 1991; Effective Jurisprudence

F) Require the guarantees and contract insurance policies necessary for the protection of the mortgage portfolio, property and property interests of the company and other risks whose protection and social deemed financially attractive to affiliates; Effective Jurisprudence

G) Establish adequate methods and tools, as well as establish sufficient reserves to timely respond severance liabilities on behalf of its affiliates; Effective Jurisprudence

H) promote national savings and channel them towards funding projects of special importance to the development of the object of the Fund; Effective Jurisprudence

I) The National Savings Fund may through inter-administrative agreements with the Colombian Institute of Educational Credit and Technical Studies Abroad (Icetex), grant educational loans to members, your spouse, partner (a) permanent and children.
Educational credits will be directed towards the promotion of technical education, university and graduate, the latter, in Colombia or abroad.
The National Government shall regulate the terms and conditions of such agreements to perform with Icetex, and guarantees that debtors should pay; and
j) The others indicated in the regulations.

K) Provide technical advice and assistance in relation to the design, implementation, management, evaluation and project management and pre-investment and investment programs related to the housing sector, housing and urban infrastructure, targeting affiliates FNA. Effective Notes

L) to contract fiduciary to manage transfer resources to other public entities to finance the implementation of special programs related to the housing sector, housing and urban infrastructure. Effective Notes

. FINANCIAL RESOURCES. The National Savings Fund as funding sources will include:
a) Layoffs affiliates, settled and recorded in accordance with the provisions in force;
B) appropriations and resources from the Nation and other entities of public or private law;
C) aid, grants, donations and contributions received from government agencies, international organizations or non-governmental organizations, or natural or legal, national or foreign, according to current standards;
D) resources from internal and external borrowing for the Fund to fulfill the purposes that are proper; Effective Jurisprudence

E) Property that as a legal person acquires in any and natural or civil fruits thereof;
F) Income arising from their investments and returns, whatever their nature;
G) The proceeds of the asset sales transactions;
H) The voluntary savings of members; e

Effective Decisions
I) Any other income resulting for the Fund.
PARAGRAFO. Being the National Savings Fund social security entity, you may not assign or use their resources, profits and performance or financial surpluses for purposes other than its purpose and functions.
The National Savings Fund will not fit under the regime of forced or investments. Effective Jurisprudence

The 5th ARTICLE. AFFILIATION OF PUBLIC SERVANTS. From the effective date of this law must join the National Savings Fund public servants of the Executive Branch of the Public Power national level. Effective Jurisprudence

Above Not applicable uniformed personnel of the Armed Forces and the National Police, or members of the National Social Benefit Fund of the Magisterium, created by Law 91 of 1989.
may become members of the National Fund Saving the other servants of the state and its entities decentralized territorially and services.
Public servants who voluntarily joining the National Savings Fund may be moved only to a fund management company layoff, three years after membership, provided they have no current mortgage obligation with the National Savings Fund. Effective Jurisprudence

PARAGRAFO. In cases where public servants have retroactivity regime in severance pay, the higher value will be the responsibility of the employer.
. TRANSFER layoffs. During the course of February employing units should be transferred to the National Savings Fund liquidated on account of severance value, taking into account the last two numbers of NIT to set payment dates.
Monthly, public entities employing sent to the National Savings Fund with a certificate containing the total value of wage factors that form the base to settle severance pay, accrued in the previous month.
Competent officials of the employing public entities, without just cause not make timely appropriations monthly contributions or sending annual reports, duly completed severance pay, incur disciplinary offenses in accordance with the current disciplinary system. Editor's Notes

In all public entities it will be mandatory to include in their budgets the necessary items to meet the severance of Ia respective force, as a prerequisite for submission, processing and approval of the corresponding authority.
PARÁGRAFO. The dates stipulated in this article for the fulfillment of Ia transfer obligation shall not apply to the employing public entities of departmental and municipal levels, the regime established in Article 99 of Ia Act 50 of 1990, in relation to the dates of transfer severance, and other regulations that regulate Ia, modify or replace. Effective Notes

Effective Jurisprudence

Legislation Previous

Article 7. Collection actions. It corresponds to the National Savings Fund advance collection actions on the occasion of breach of the obligations of the employing entities, in accordance with the regulations issued by the National Government. To this end, the winding through which the Fund determines the values ​​owed, have the character enforceable. Effective Jurisprudence

The Fund may verify the accuracy and timeliness of transfers corresponding severance, for which it will enjoy powers of investigation and enforcement in the employing entities for this purpose may:
a) conduct inspections to entities ;
B) Review payroll, budgets, balance sheets and ledgers; and
c) Make requirements to legal representatives, personnel managers and payers. Effective Jurisprudence

. AFFILIATION private sector workers. From the effective date of this law, they may join the National Savings Fund workers in the private sector.
Private sector workers who join the National Savings Fund shall enjoy the same rights and benefits under this law for public servants, except with regard to interest on the severance of which Article 12 this law, which will continue to be recognized and paid directly by their employers in accordance with the Laws numbers 52 1975 and 50 1990.
private sector workers who join the National Savings Fund may only transladarse a management company of unemployment funds, three years after membership, provided they have no current mortgage obligation with the National Savings Fund. Effective Jurisprudence

The National Government shall regulate the requirements and conditions of membership and voluntary withdrawal of members belonging to public and private sectors, the National Savings Fund.
PARAGRAFO. Partial severance payments that private sector workers affiliated request the National Savings Fund may only be used for the following purposes:
a) Purchase housing or lot to build it;
B) Construction of housing in batch affiliate or your spouse or partner (a) permanent;
C) Improvement of homeownership affiliate or your spouse or partner (a) permanent;
D) Release of mortgage lien created on housing affiliate or your spouse or partner (a) permanent. Effective Jurisprudence

Article 9. LIQUIDATION AND APPROPRIATION severance private sector workers. Private sector employers must liquidate and record layoffs of their workers affiliated to the National Savings Fund, in accordance with the provisions of Article 99 of Law 50 of 1990.
Failure to comply with the provisions herein shall entitle the Fund to charge default interest in their favor dealt with in Article 6. of this law. Effective Jurisprudence

ARTICLE 10. SEPARATION OF ACCOUNTS. The National Savings Fund should be administered independently and has separate layoffs of workers affiliated individuals; and may contract with private Colombian enterprises of recognized competence and experience service external audit of all the resources of the entity.

ARTICLE 11. PROTECTION AGAINST THE LOSS OF PURCHASING COIN VALUE. As of December 31, 1997 and annually each December 31, the National Savings Fund recognize and pay in the individual account severance each affiliate least equivalent to the annual change Price Index Consumer interest IPC on their accumulated severance balance at December 31 of the preceding year, and proportional fraction of the year that corresponds to the time of retirement, over the partial or final amount of the severance paid. Effective Jurisprudence

ARTICLE 12. INTEREST ON layoffs. As of 1. January 1998 the National Savings Fund recognizes and paid into the account of severance pay for each public servant affiliate, interest equivalent to sixty percent (60%) of the annual change Price Index Consumer IPC, on severance payments settled by the respective nominating entity immediately before or proportional to the fraction of the year that year finally cleared.
For the purposes of this Act, the annual change in the Consumer Price Index, CPI, will be the last certified by the National Administrative Department of Statistics, DANE, for the months of November to November, media employees. Effective Jurisprudence

ARTICLE 13. RESPONSIBILITY OF THE NATIONAL SAVINGS FUND. The responsibility of the National Savings Fund in severance pay to affiliates, be limited to the amount of contributions actually entered severance, interest on severance payments and the percentage covered by Article 11.
also liable for voluntary savings that the literal h) of Article 4 concerns. of this law, in accordance with regulations to be issued for the purpose.

ARTICLE 14. INSPECTION AND SURVEILLANCE. In accordance with special regulations to this effect issued by the Government, the National Savings Fund will be subject to the inspection and supervision of the Banking Superintendency and will join the Guarantee Fund of Financial Institutions, Fogafin. Effective Jurisprudence

governing body. The Directorate of National Savings Fund will be run by a Board of twelve (12) members, as follows:
The Minister of Economic Development or his delegate, who will preside;
The Minister of Finance or his delegate;
The Minister of Labour and Social Security or his representative;
The Minister of Education or his delegate;
The Head of the National Planning Department or his delegate;
A representative of the Family Compensation, with a deputy, appointed by them;
A representative of the construction unions, with their respective alternates, selected by them;
A representative of the Colombian Association of Universities, with a deputy, appointed by it;
Three representatives of members, their alternates, appointed by the Confederations of Workers. These representatives should be active members of the National Savings Fund and belong to different regions of the country;
The Director General of the National Savings Fund, who will act with voice but no vote.
PARAGRAFO. The Board will meet validly with the absolute majority of its members and its decisions shall be taken by half plus one of the attendees.
The period of representatives of members of the building trades, the Colombian Association of Universities and the Family Compensation shall be two (2) years.
The alternate members of the Board of Directors only act in the event of temporary or permanent absence of the principal.

ARTICLE 16. DIRECTOR, LEGAL REPRESENTATION. The legal representation of the National Savings Fund will be headed by a Director General, who will be agent of President of the Republic, their appointment and removal. Its functions shall be established by law and the Articles of the Company.

ARTICLE 17. CLASSIFICATION OF PUBLIC SERVANTS OF NATIONAL SAVINGS FUND. Public servants linked to the staffing of the National Savings Fund will be official employees, except those who hold the positions of Director General, Secretary General, Assistant Directors-General and regional units Coordinators, who will have the status of public employees.

ARTICLE 18. RESTRUCTURING. The Board of the National Savings Fund, within six (6) days following the effective date of this law months, make modifications to the internal structure of the company and the staffing creating, modifying or deleting charges.
Also adopt and submit to the Government for adoption, as appropriate, internal bylaws, operating manuals and procedures, labor regulations and other internal rules necessary to implement the organization and operation of the company. While issuing each other, the laws, statutes and regulations in force at the date of this transformation is applied.
The restructuring of the National Savings Fund will be oriented according to the following principles and general rules: be financed entirely with its own resources; It will work in a decentralized and efficient manner, and comply with the administrative and technical developments of public administration, for which you can rely on services provided by individuals.
PARAGRAFO TRANSIENT. Public servants currently working in the National Savings Fund will be relocated to the new plant personnel.
There will be compliance solution for staff relocated to the new plant personnel.
To make changes to the staffing, the National Savings Fund form a commission that will be part of a member of the Board of the Union, the representative of the employees to the Personnel Commission and designees the director General of the entity.

ARTICLE 19. EFFECTIVE DATE. This law governs from its enactment and repeal all provisions that are contrary.
The President of the honorable Senate,
The Secretary General of the honorable Senate,
The President of the honorable Chamber of Representatives,
The Secretary General of the honorable House of Representatives, DIEGO VIVAS
Republic of Colombia - National Government.
Published and executed.
Given in Santa Fe de Bogota, DC, on January 29, 1998.

Ernesto Samper Pizano Minister of Finance and Public Credit, URDINOLA
The Minister of Economic Development,

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