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Whereby The National Commercial State Social Insurance Fund Of Public Establishment For Industrial Company And Is Transformed And Dictate Other Provisions

Original Language Title: Por la cual se transforma la Caja Nacional de Previsión Social de Establecimiento Público en Empresa Industrial y Comercial del Estado y se dictan otras disposiciones

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490 OF 1998

(December 30)

Official Journal No. 43,465 of 31 December 1998

By which the National Social Welfare Fund of Public Establishment is transformed into Industrial and Commercial Enterprise of the State and other provisions are dictated

Vigency Notes Summary

COLOMBIA CONGRESS

DECRETA:

ARTICLE 1o. LEGAL NATURE. The National Social Welfare Fund, a public establishment of the national order created by Law 6a of 1945, is transformed by virtue of this law into the Industrial and Commercial Enterprise of the State with legal status, administrative autonomy and independent heritage. Its budgetary and staffing arrangements will be the one for public entities in this class. It will be linked to the Ministry of Labour and Social Security.

For all legal purposes the name of the company is National Social Security Fund and you can use the acronym "Cajanal".

In your activity as a health-promoting entity, you may add the acronym E.P.S. In the other activities that the Cajanal organization may organize, you may add the acronym that identifies them.

For tax purposes, the National Social Welfare Fund will be governed by the provisions of public establishments and exempt from income tax and supplementary taxes.

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ARTICLE 2o. OBJECT. The National Social Security Fund, in its legal nature as Industrial and Commercial Enterprise of the State, will operate in the field of health as a Health Promotion Entity (E.P.S.), and may also develop and administer other health and economic benefits, as well as complementary services in the terms of the 1993 Law 100 .

The National Social Security Fund will design, structure, organize, co-finance and address the social welfare program of pensioners and the elderly affiliated to this Company.

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ARTICLE 3o. FUNTIONS. They are functions of the National Social Security Fund:

a) Develop the functions assigned in the Law 100 of 1993 and other rules that regulate, modify or supplement, own of the health-promoting entities, of the institutions providing health and any other type of service and activity or program related to the integral social security in charge of the company, in the terms of the Act 100 of 1993;

b) Exercise contractual activity for the fulfilment of its objectives;

c) Investing resources in such a way as to enable you to ensure the quality and payment of your services;

d) Ensure the provision of comprehensive social security services to its affiliates;

e) Design, structure, organize, co-finance and care for social welfare services for pensioners and the third age of Cajanal;

f) The others that point to you the law, the decrees and the Statutes.

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ARTICLE 4. RECOGNITION AND SETTLEMENT OF PENSIONS. The National Social Welfare Fund will continue with the functions of processing and recognition of pensions, as well as with the collection of the contributions in the terms established by the law, which will be rotated monthly to the Public Pension Fund of the National Level, entity that will be in charge of the payment of the respective pensions. Other economic benefits will continue to be processed, recognised and granted by Cajanal.

The reserves that the National Social Security Fund has accumulated up to the present law for pension purposes, will be submitted to the National Level Public Pension Fund.

To meet the cost of these functions and the payment of the invalidity and survival premiums, up to three point (3.5) points of the contribution to the general pension system established by the law, prior to the analysis, will be used. (a) papers allowing the determination of the operating costs of the agreement with the relevant studies. In any case, the National Government will guarantee the necessary contributions to cover the cost of the administration of this system, in so far as the reduction in the number of the members decreases the income received by the quotations.

Public entities of the national order, which, in accordance with the provisions of the respective rules, are obliged to pay the pensions caused before the first of April 1994, will abolish the obligations (a) the accounting records for which the parties have assumed, in their financial statements, the corresponding accounting records. The pension obligations arising from that date shall be financed in addition to the resources provided for in the law, with the pension bonus or part of the part which the institution which is in the obligation to pay for the payment shall be issued by the institution which is in the obligation to pay the respective pension, or the pension, issued in favour of the institution in charge of the payment of that benefit.

The Nation will be able to pay for the territorial entities the obligatory quotas when there are reciprocal obligations of payment of fees of the pension parts between entities of the national order and territorial entities; the compensation will proceed by agreements in the terms of the Civil Code, without prejudice to the parties ' agreement that they may compensate for such obligations to pay shares between them.

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ARTICLE 5o. Domicile. The address of the National Social Security Fund will be the city of Santa Fe de Bogota, D. C., and may establish, throughout the national territory, regional dependencies as determined by the Board of Directors, without exceeding the percentage the competent authority is to be determined by administrative expenditure.

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ARTICLE 6o. MANAGEMENT BODIES. The address of the National Social Security Fund will be in charge of a Board of Directors made up of:

1. The Minister of Labour and Social Security or his delegate, who will chair it.

2. The Minister of Finance and Public Credit or his delegate.

3. The Director of the National Administrative Department of Planning or its delegate.

4. A delegate of the President of the Republic.

5. A representative or your alternate member of the pension contributions pensioners, of Cajanal EPS, directly elected by them.

6. A representative or your alternate of the non-pensioners, Cajanal EPS, directly elected by them.

7. A representative of the employing entities, chosen from the entity with the largest number of members listed in Cajanal EPS.

PARAGRAFO. The legal representative of Cajanal, will assist with voice but without voting to Board meetings. He will serve as Secretary of the Board, the General Secretary of Cajanal, or whoever does his or her times.

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ARTICLE 7o. BOARD FUNCTIONS. They are the functions of the Board of Directors:

1. To formulate the general policy of the National Social Security Fund in accordance with the purpose of this law and other rules governing the integral social security system in Colombia.

2. To issue and modify the Company's Statutes, in accordance with the rules governing its processing.

3. Ensure that the operation of the Company corresponds to the policy formulated.

4. Determine the internal structure of the Company and approve its personnel plant, in accordance with the rules governing its processing.

5. Approve the preliminary draft annual budget, which will be sent to the Ministry of Finance and Public Credit and the Administrative Department of National Planning for the procedure outlined in the rules governing the budget and controlling its execution.

6. Approve the financial statements of the Company to be sent to the Conpes for the distribution of financial surpluses.

7. Adopt the Company's internal rules of work and its amendments.

8. To authorize the Manager so that the Company may participate in companies that relate to the object of the same, to acquire or to dispose of shares or parts of social interest in societies, subject to the legal provisions on the matter.

9. To exercise the other functions entrusted to you by the laws, decrees or statutes and those that naturally correspond to you as a management body of the Company.

ARTICLE 8o. GERENT. LEGAL REPRESENTATION. The legal representation of the National Social Security Fund, will be in charge of a General Manager who will be the agent of the President of the Republic, of his free appointment and removal. Its functions are those established by the law and the Statutes of the Company.

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ARTICLE 9o. CLASSIFICATION OF THE PUBLIC SERVANTS OF THE NATIONAL SOCIAL INSURANCE FUND. The management, trust and management activities that must be performed by public employees in the Industrial and Commercial Enterprise of the State-Cajanal, determine in the statutes of the same; the other servants shall have the quality of official workers.

TRANSIENT PARAGRAPH. As long as the new site of charges is established and the addition to it, the plant personnel that were linked to Cajanal will continue to perform the same functions and receive the same salary.

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ARTICLE 10. COMPENSATION FOR THE RETIREMENT OF PUBLIC SERVANTS FROM CAJANAL. The official workers who will be removed from the post as a result of the restructuring of the National Social Welfare Fund-Cajanal, and cannot be relocated to office. the same or higher category, they shall be entitled to the following compensation:

1. Forty-five (45) days of salary when the employee has a continuous service time not more than one year.

2. If the employee has more than one year of continuous service and less than five (5), he will be paid fifteen (15) additional days of salary over the forty-five (45) basic days of the number one for each of the years of service. first, and proportionally per fraction.

3. If the employee has five (5) years or more continuous service and less than ten (10), he will be paid twenty (20) additional days of salary over the forty-five (45) basic days of the number one and for each of the subsequent years of service. to the first and proportionally by fraction.

4. If the employee has ten (10) years or more continuous service, he will be paid forty (40) additional days of salary over the forty-five (45) basic days of the number one and for each of the years of service subsequent to the first and proportionally per fraction.

For the purposes intended for the application of the indemnities mentioned in this article, the service time must be continuous and shall be counted from the date of the last or the only link of the employee with the National Box of Social Welfare.

PARAGRAFO 1o. To the servers to whom the charge is removed by virtue of the restructuring of Cajanal, they will have the right to be relocated to an equal or higher category, or they will be eligible for compensation. provided for in this Article, provided that such deletion takes place within six (6) months of the date of this law.

PARAGRAFO 2. The same compensation will be granted to the Cajanal servers that voluntarily and within six (6) months after the law is in effect, decide to withdraw from the service.

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ARTICLE 11. RIGHTS AND OBLIGATIONS OF THE NATIONAL SOCIAL SECURITY FUND. The rights and obligations of the National Social Security Fund, to the date of the enactment of this law, shall continue in favor and in charge of the Industrial Company and State Commercial.

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ARTICLE 12. CRITERIA FOR RESTRUCTURING. The restructuring of the National Social Welfare Fund will be oriented in accordance with the following general principles and rules; it will have to be fully financed from its own resources; This is a disconcentrated and efficient way; it will be in line with the administrative and technical developments of the public administration, for which it can rely on services provided by private individuals.

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ARTICLE 13. PERIOD FOR RESTRUCTURING. Within six (6) months following the enactment of this Law, not extendable, the Board of Directors of the National Social Welfare Fund shall adopt the statutes and other provisions necessary for the restructuring, organisation and operation of the company. As long as these are issued, they will continue to apply the laws, regulations and regulations in force to the date of their transformation.

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ARTICLE 14. .

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Previous Legislation
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ARTICLE 15. VALIDITY AND REPEAL. This law governs from its promulgation and repeals the provisions that are contrary to it.

The President of the Honorable Senate of the Republic,

Fabio Valencia Cossio.

The Secretary General (E) of the honorable Senate of the Republic,

Luis Francisco Boada.

The President of the honorable House of Representatives,

Emilio Martinez Rosales.

The Secretary General of the honorable House of Representatives,

Gustavo Bustamante Moratto.

COLOMBIA-NATIONAL GOVERNMENT

Publish and execute.

Dada en Santa Fe de Bogotá, D. C., at 30 December 1998.

ANDRES PASTRANA ARANGO

The Deputy Minister of Finance and Public Credit,

in charge of the Issue of the

Minister of Finance and Public Credit,

Juan Mario Laserna Jaramillo.

The Minister of Labour and Social Security,

Hernando Yepes Arcila.

The Deputy Minister of Health,

in charge of the Issue of the

Minister of Health, "

Juan Pablo Uribe Restrepo

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