Key Benefits:
549 OF 1999
(December 28)
Official Journal No. 43,836 of 30 December 1999
the National Pension Fund of the territorial entities is created and other provisions on the loan are being made.
COLOMBIA CONGRESS
DECRETA:
COVERAGE OF THE PENSION LIABILITY OF TERRITORIAL ENTITIES AND CREATION OF THE NATIONAL PENSION FUND FOR TERRITORIAL ENTITIES
ARTICLE 1o. COVERAGE OF PENSION LIABILITIES. In order to ensure the economic stability of the State, the territorial entities shall cover in the manner provided for in this law the value of the pension liabilities at their expense, within the time limits and in the percentages to be pointed out by the National Government. This obligation shall be fulfilled as from the entry into force of this law. In any case, the pension liabilities must be 100% (100%) in a term not greater than thirty (30) years.
For this purpose, account will be taken of both the central sector's liabilities and those of the decentralized sector and other entities at the territorial level.
To determine the coverage of liabilities, account shall be taken of both the existing resources of the National Pension Fund of the territorial entities referred to in Article 3or. of this law, such as those existing in the Territorial Pension Funds, the autonomous assets and reserves of the decentralized entities constituted in accordance with the law and corresponding regulations.
PARAGRAFO 1o. Entiendase by pension liability consists of the obligations made up of the pension bonds, the value corresponding to the mathematical reserves of pensions and the shares of bonds and pensions.
PARAGRAFO 2o. For the purposes of this law, the reserves constituted by the decentralized entities shall be supported at all times by liquidable assets.
ARTICLE 2o. RESOURCES FOR THE PAYMENT OF PENSION LIABILITIES. They will be used to cover pension liabilities the following resources:
1. The new resources that are transferred to the departments and districts by way of tax located in the resources collected for the purpose of the tax on the financial transactions referred to in the article 117 of the Development Plan Act, which will be used to address the territorial pension liabilities of the areas of health and education, and will be shared between those areas and between departments and districts, in the same proportion in which the tax situated in the respective sectors and entities is distributed between the sectors and entities mentioned year.
2. Those that occur due to the percentage increase in the participation of the municipalities in the current income of the Nation, to be carried out from the year 2000, including the latter, according to the paragraph of the article 357 of the Political Constitution, which will be distributed among the accounts of the territorial entities in the same way as the shares in the revenue of the Nation are distributed.
3. For the year 2000 and following a percentage of not more than 7% (7%) of the resources of the National Royalty Fund, and which do not commit the resources of specific destination of the territorial entities. These resources shall be distributed among the accounts of the territorial entities with the same criteria as apply for the distribution of the investment resources of the National Royalty Fund.
4. Ten percent (10%) of the resources coming from national privatizations under the terms of Article 23 of Law 226 of 1995, which will be distributed equally among the municipality, department and district, if applicable, in which the principal activity of the undertaking whose shares are located is located.
5. 160 of Law 1151 of 2007 >
6. From 1o. of January 2000, twenty percent (20%) of the goods whose domain is extinga in favor of the Nation, by virtue of the application of Law 333 of 1997 and the norms that complement or add it. These goods will continue to be administered by the authorities provided for in the provisions in force, with the participation of the Ministry of Finance and Public Credit, and they will have to be set up so that with their product and that of their administration they will be increase the value of the Fund.
7. From 1o. of January 2000, 15% of the proceeds of the sale to the private sector of shares or assets of the territorial entities.
8. From 1o. of January 2001, 20% of the product of the registration tax.
9. As of 2001, 5% of the revenue streams of the respective department. This percentage will be increased annually by one percentage point, so that from the year 2006, even, 10% of the current income of the respective territorial entity will be allocated to the Fund.
10. The proceeds from the exploitation of the National Loto, which will be organized by the National Government within six months of the entry into force of this law. These resources will be used to deal with the pension liabilities of the health sector in the territorial entities. Initially, the resources will have to cover the liability of financing of said liability provided for in law 60 of 1993, for which the allocation of the resources will be distributed between the Nation and territorial entities in the same proportion as these pension liabilities, as provided for in Article 33 of Law 60 of 1993 and the provisions which add or reform them, should be financed. Once the responsibility for shared financing has been covered according to the aforementioned law, the product of the Loto will be used to finance the rest of the pension liability of the health sector, of the territorial entities.
11. From 2001, 70% of the product of the national stamp duty.
PARAGRAFO 1o. The resources referred to in numerals 5, 6, 10 and 11, when they are to finance liabilities of the territorial entities, shall be distributed between the departments and districts of one party, and the municipalities of another party, in the same proportion that exists between the resources of the fiscal position and those corresponding to the participation of the municipalities in the current income of the Nation in each year. The distribution between each of the departments and districts and between each of the municipalities shall be made in accordance with the same criteria as set out in numerals 1 and 2 of this Article, as the case may be. For the purposes of the calculations corresponding to the distribution among the municipalities, the districts provided for in the Political Constitution will not be taken into account.
Resources from a given territorial entity will be allocated to that territorial entity.
PARAGRAFO 2o. From 1o. In January 2001, the contribution of the registration tax may be increased by a half percentage point from the tariffs provided for in the law.
PARAGRAFO 3o. In any event, national resources, other than constitutional transfers, are to be paid to the territorial entities. govern the pension scheme and the obligations imposed on it by this law.
PARAGRAFO 4o. Territorial entities may allocate resources that do not correspond to the National Pension Fund of Territorial Entities for the Pension Funds of the territorial level or the assets self-employed persons who have pension funds.
PARAGRAFO 5o. The teachers in charge of the municipalities, departments, and districts must be affiliated with the National Fund of Social Benefits of the Magisterium, as provided for in Laws 91 of 1989, 60 of 1993 and 115 of 1994.
PARAGRAFO 6o. By the year 2000 the National Government will have to anticipate the territorial entities (departments, districts and municipalities) that have to be paid in arrears to October 30, 1999, the value of the corresponding to cover such pension debt, discounting the value of the advance of the same year or in subsequent years, of the resources to be rotated by the Nation to the Fonpet in the part corresponding to the respective account of the entities territorial, taking into account the destination of these resources. The total amount to be anticipated by the nation will not exceed eighty billion pesos. Such advances shall be made exclusively for the payment of overdue pension payments. The Government will regulate the form and opportunity in which the delay in the pension tables will be credited on the date mentioned, the formula for calculating the corresponding value and the distribution of the resources when they do not meet the same. the whole of the backward meses.
PARAGRAFO 7o. In development of the provisions of the 2000 Budget Law, in relation to the investment that the department of La Guajira will make, in accordance with Law 226 of 1995, clarify the following:
10% of the product of the sale of the interest of the Nation and of its decentralized entities in the Cerrejon North Zone, will be distributed like this:
Up to 50% to the National Pension Fund of the territorial entities, created by this law, up to the amount of the actuarial calculation of the pensions and the remnant, for the execution of development projects Regional development in the department and the municipalities where the main industrial activities object of privatization are developed.
PARAGRAFO 8o. The Ministry of Finance and Public Credit will design and adopt a financial management model that will determine the amount of resources that each territorial entity will have to transfer annually to the Fonpet. This model shall take into account the level of reserves constituted, the size of the pension obligation and the expected behaviour of the payments. Within two years of the entry into force of this law, the Ministry of Finance and Public Credit must design and adopt the model provided for in this paragraph. From the date on which the model is adopted, the territorial entities will be able to determine the amount of their contributions according to it, which may be lower than those provided for in this article as long as the goals are met. marked in the model. As long as the financial management model has not been adopted, it must be fully complied with with the contributions provided for in this article.
When the contributions of the territorial entity are reduced by virtue of the provisions of this paragraph, the same proportion will reduce the participation of the entity in the income that the Nation transfers in the development of this law.
ARTICLE 3o. NATIONAL PENSION FUND FOR TERRITORIAL ENTITIES, FONPET. For the purposes of administering the resources intended to guarantee the payment of pension liabilities in the terms of this law, create the National Pension Fund Territorial Entities, Fonpet, as a fund without legal status administered by the Ministry of Finance and Public Credit, which aims to raise and allocate the resources to the accounts of the local authorities and to administer the resources by means of the self-employed assets which are exclusively provided for in the the management of pension funds and private or public cessations, in private or public trust companies or in private or public life insurance companies that have the power to administer the resources of the General System of Pension and pension schemes excepted from the system by law.
In any case, the responsibility for the territorial pension liabilities will correspond to the respective territorial entity. Therefore, the creation of the National Pension Fund of the Territorial Entities, of the destination of national resources to contribute to the financing of such liabilities or that by legal provision the Nation must carry out contributions to contribute to the payment of the pension liabilities of the entities at the territorial level, does not imply that the latter assumes responsibility for them.
In that Fund each of the territorial entities shall have an account for the payment of their pension liabilities. The values recorded in the accounts shall belong to the territorial entities and shall be complementary to the resources allocated by the territorial entities to the creation of Territorial Pension Funds and Autonomous Heritage Funds for guarantee pension liabilities in accordance with the rules in force.
ARTICLE 4. PENSION LIABILITY AS A PRIORITY PROJECT. Within the Development Plan of the respective entity, the constitution of the necessary reserves and its administration through the Fonpet must be included as a priority project to cover the liabilities pensional, in the terms of the law.
ARTICLE 5o. TRANSFER OF FIXED ASSETS. The Government may fix the general parameters according to which the Fund's Board of Directors may authorize the surrender of a liquid resource amount not exceeding thirty to the territorial entities (30%) of the balance of the institution's account, to the payment of the pension obligations, from the sources of resources provided for in the numerals 1, 2, 3, 8, 9, 10 and 11 of Article 2or. of this law. In exchange for these resources, they must be delivered by the territorial entities fixed assets which may be administered in fiduciary positions. Such assets shall be disposed of, as far as is required, and the resources obtained there shall be transferred to the Fonpet.
The assets that are to be delivered must be eligible, they cannot be received in excess of their value in books and, in any event, the territorial entity must be obliged to guarantee the liquidity of the same in the event in which it is required. In addition, the market value of such assets must be determined periodically and at the event that the market value of those assets is lower than that for which the asset was received, the territorial entity will be obliged to make the difference to the extent that it necessary for the resources in his account to cover the value of the pension liability in accordance with the actuarial calculation.
ARTICLE 6o. WITHDRAWAL OF RESOURCES FROM THE NATIONAL PENSION FUND OF THE TERRITORIAL ENTITIES. Without prejudice to the provisions of the previous article, no resources may be withdrawn from the account of each territorial entity in the National Pension Fund. the Territorial Entities up to the amount accumulated in the territorial account in the National Fund of Liabilities of the Territorial Entities with the resources that they have in their Territorial Funds of Pensions or in their Autonomous Patrimoniones in reserves legally constituted by the decentralised entities or other entities of the territorial level, 100% (100%) of the pension liability has been covered, in accordance with the respective actuarial calculation.
Fulfilled this amount, the entity will be able to allocate the resources of the Fund to the payment of pension liabilities, as long as, in any case, the balance of the account in the Fonpet, in the Territorial Pension Funds, in the Autonomous Heritage that they have constituted or reserves constituted by the decentralised entities or other entities at the territorial level, covers the calculation of the total pension liability of the institution.
As long as the sum of these balances does not cover such calculation, the institution shall cover its pension liabilities due to the resources of the Territorial Pension Fund, the Autonomous Heritage constituted, the reserves constituted for that purpose, or other resources.
The Territorial Pension Fund and the autonomous assets constituted to guarantee pension liabilities in accordance with the 1993 Law 100 and supplementary provisions, may be co-administered in a single autonomous heritage and its administration will be in charge of trust companies, pension fund managers.
Likewise, when the pension liabilities of an entity are covered, the resources referred to in Article 2or. of this law which are caused from that date may be destined by the titular entity of the same to the purposes that correspond according to the laws that regulate the destination of each of these resources. In any case, if the liability ceases to be adequately covered, the resources must be allocated again to the financing of the entity's account in the National Pension Fund of the Territorial Public Entities. The national resources referred to in the law shall be distributed among the accounts of institutions which do not have their entire liabilities covered.
The financial returns generated by the resources of the Fonpet shall be distributed among the accounts of the territorial entities contributing, in proportion to the value of the same and shall be subject to the provisions of this law.
ARTICLE 7o. RULES FOR THE FUNCTIONING OF THE NATIONAL PENSION FUND FOR TERRITORIAL ENTITIES. For the operation of the National Pension Fund of Territorial Entities, the following rules shall be taken into account:
1. The Fund shall record the resources in separate accounts for each territorial entity.
2. The resources corresponding to each entity shall be recorded in their respective account.
3. Within the account allocated to each territorial entity, the Fund shall allocate sub-accounts for the different sectors that generate pension liabilities that have specific sources of financing.
4. The resources will be administered through the Autonomous Patrimonies which will be the National Pension Fund of the Territorial Public Entities in the administrative societies of pension funds and cesses, in trust companies or in life insurance companies that are selected through a public tender process, which will be brought forward as provided for by Law 80 of 1993. For the purposes of that invitation to tender, the accounts of the territorial entities in the Fund may be grouped in the form determined by the Government so that several administrative entities can be counted. In any event, institutions shall comply with the solvency ratios determined by the National Government.
5. The minimum return on the Autonomous Patrimonies which are constituted for the administration of the resources of the National Pension Fund of Territorial Entities will be equivalent to the weighted average of the profitability generated by all the The Commission has proposed that the Commission should take into account the fact that the national authorities are not in a position to take action. The resources of these Autonomous Patrimonies shall be invested taking into account the rules foreseen for the investment of the reserves of the individual savings scheme with solidarity, in accordance with the regulations issued by the National Government, in order to preserve their profitability and safety. In no case shall the resources of the Fund be used for purposes other than financing the pension liabilities of the territorial entities in the terms and conditions provided for in this law.
6. For the purposes of establishing the administration commission, the profitability of the managed portfolio will be taken into account and will be paid out of the resources transferred from the General Budget of the Nation.
7. Thirty per cent (30 per cent) of managed resources will be invested in Mortgage Bonds or the purpose of housing finance, issued by credit institutions duly authorised for financing housing, in order for these establishments to create special lines of credit to finance the acquisition of housing, in accordance with the regulations that the National Government will issue for this purpose.
ARTICLE 8o. FUND STEERING COMMITTEE. The Fund will have a Steering Committee made up as follows:
The Minister of Finance and Public Credit, who will preside over him, or his delegate, the Minister of Labor and Social Security or his delegate, the Director of the National Planning Department, or his delegate, the Minister of the Interior or his delegate, two of whom are representatives of the departments, two representatives of the municipalities, a representative of the districts and a representative of the pensioners designated by the presidents of the organizations of pensioners of the territorial entities, who are in legal force.
The Fund Steering Committee will have the following functions:
1. Determine the Fund's overall management policies in accordance with the law.
2. Approve the Fund's financial statements.
3. Approve asset substitution by territorial entities in accordance with article 5or. of this law.
4. Give yourself your own rules.
ARTICLE 9o. ACTUARIAL CALCULATIONS. For the purposes of this law, an actuarial calculation must be established for each territorial entity and its decentralized entities according to the methodology and within the program that is designed to National Ministry of Finance and Public Credit, with charge of its resources. This program should include the lifting of labor histories and the calculation of the liabilities, and will be able to count on the participation of the departments in the coordination of their municipalities.
The General Accounting Office of the Nation will verify the existence of the resources and reserves necessary to respond to the pension liabilities in the form provided for in this law.
ARTICLE 10. OBLIGATION TO CARRY OUT THE FORMALITIES TO GUARANTEE THE PAYMENT OF THE PENSION LIABILITY. It is a very serious failure not to advance all the necessary formalities to cover the pension liability in the form provided for in this law.
It is up to the territorial entity to turn the resources to the National Pension Fund of the Territorial Entities when it wants to have these resources generated by the same territorial entity. When these resources are to be rotated by the Ministry of Finance and Public Credit, it will directly and immediately turn the resources to the Fonpet.
Likewise, the Ministry of Finance and Public Credit will be able to act as a judge with coactive jurisdiction to obtain the transfer of the corresponding resources of the territorial entity, its decentralized bodies, and other entities of the territorial. For these purposes the corresponding resources may be seized by the Ministry. The provisions of this paragraph are without prejudice to the provisions of the Organic Law on the Budget.
ARTICLE 11. PARTICIPATION OF MUNICIPAL TRANSFERS FOR SOCIAL SECTORS. Add a new numeral to article 21 of Law 60 of 1993, which will be the number 16. As a result, numerals 16 and 17 of article 21 of Law 60 of 1993, will remain so:
16. Covering the pension liabilities of the respective entity through the National Pension Fund of the Territorial Entities.
17. In other sectors that the Social Conpes considers appropriate and at the request of the Colombian Federation of Municipalities.
ARTICLE 12. AMENDMENT OF ARTICLE 22 OF LAW 60 OF 1993. Add the following number to Article 22 of Law 60 of 1993:
7. In covering the pension liabilities of the respective entity through the National Pension Fund of the Territorial Public Entities Fonpet, for which the percentage increase provided for by the Political Constitution will be allocated of the year 2000.
FINAL PROVISIONS
ARTICLE 13. BUDGET FRAMEWORK FOR COLLECTIVE BARGAINING.
ARTICLE 14. REPORTING OF COLLECTIVE AGREEMENTS OR COVENANTS.
ARTICLE 15. RESTRICTION TO THE NATION ' S FINANCIAL SUPPORT. prohibit the Nation from granting direct or indirect financial support to territorial entities and to other public entities at the territorial level that do not comply with the provisions of the present They will not be allowed to grant credits with resources from the Nation, co-finance projects, authorize or guarantee public credit operations, or transfer any kind of resources, other than those mentioned in the Constitution. Politics.
ARTICLE 16. INFORMATION AND DISCIPLINARY RESPONSIBILITY. In order to ensure the monitoring of compliance with the obligations of the territorial entities, they must be sent at the intervals indicated by the Government. National to the Ministry of Finance and Public Credit, the information required for the effect.
The violation of the provisions of this law is very serious.
ARTICLE 17. PENSIONAL BONOS. The pension bonds issued by the Territorial Entities and other Public Entities to the Social Insurance Institute shall be settled by calculating the present value, at the date of transfer, of the capital necessary to finance an old-age pension, with the conditions of age, percentage and time, of the regime applied to it, decreased in the value present to the date of transfer, of the contributions expected to be made by the member to the administrator between the date of transfer and the date to acquire the right, updated and capitalized. For all calculations an actual effective technical interest of four percent (4%) will be used; actuarial factors will be calculated with the same technical parameters of the Individual Savings Regime calculated at four percent (4%) actual actual cash. The bonds so determined shall bear an interest equivalent to the pension DTF calculated as CPI plus four (4) actual points, between the date of the transfer and the date of payment.
The salary at the base date (June 30, 1992 or immediately prior to that date, if at that date was not active) to calculate the pension bonds will be determined by taking the same wage factors as are used for the recognition of the pension, in the pension scheme of Law 100 of 1993. The salary thus determined shall be updated until the date of shipment, with the DANE certified consumer price index. The same factors will be used for the recognition of the pension.
In any case, the issuer and each taxpayer will each answer for their share of the bond, for which the bonds can be issued through coupons. In the case of the Individual Savings Scheme, the splitting of the bond may be provided in the form determined by the Government. The National Government shall determine the general rules in accordance with which, in exceptional cases, the administrator may authorise the payment of the bonds or shares in instalments, by means of advance annuities, within a period not exceeding five (5) years, and subject to the granting of sufficient guarantees. The legal representative of the entity that fails to pay for its obligation, incurs a cause of misconduct. For the financing provided here, the profitability certified by the Banking Superintendency for the Pension Fund to which the holder of the respective bond is affiliated will be used.
Without prejudice to the requirements for access to the pension under the transitional arrangements, all times worked or listed in the public sector and those listed on the ISS will be used to finance the pension. When some time is not included for the recognition of the pension and therefore is not included in the calculation of the pension bonus or does not proceed the issuance of bonus, it will be given to the person who recognizes the pension, by the entity that received the (a) contributions or contributions in which he or she provided services without contributions, the value equivalent to the pension contributions which he or she made to the Invalidity, Old Age and Death Scheme of the ISS, updated with the pension DTF. In such cases, where the time worked with the public sector is prior to 1967, this value shall be calculated by the percentage of the contribution for the old age pension which it governed for the year 1967, where the amount of the value of the bonus to which it is place. In the case of pensions under transitional arrangements of the public sector recognized by the ISS, the value of the bonus will be deducted from the contributions made to the ISS, before the date of the transfer, updated in the form provided here.
When it is necessary to reliquate bonds already issued that are not in firm, for the reason of the change in the form of calculation of the bonds or by mistake made in the expedition, the issuing entity will proceed to reliquate the bond, annulling the bond initial and issuing a new one, for which only the communication to the beneficiary will be required.
Pension fund administrators and insurance companies will be able to gain access to securities exchange trading systems to conduct operations on pension bonds. For this purpose, the Superintendency of Securities may regulate the negotiation of such securities.
ARTICLE 18. INSPECTION, SURVEILLANCE AND CONTROL. The inspection, surveillance and control over the administrative entities of the resources of the Fonpet will be exercised by the Banking Superintendence, which will ensure the correct management of the managed resources. This entity will be obliged to report periodically to the public and at least two (2) times a year, through massive means of communication, on the management of the resources of the Fonpet and should periodically require the administrators of pension and cessation funds, trust companies or life insurance companies, which administer the autonomous assets of each body, reliable information on the financial, management and outcome indicators that disclose the correct management and demonstrate their sound administration.
ARTICLE 19. INCOME AND CAPITAL RESOURCES BUDGET. The following addition in the General Budget of the Nation for the fiscal year 2000, in the sum of eighty billion pesos legal currency ($80,000,000,000), according to the following detail:
Revenue from the General Budget of the Nation
1. National Budget Revenue $80,000,000,000
2. Nation's Capital Resources $80,000,000,000
ARTICLE 20. SPENDING BUDGET OR APPROPRIATIONS ACT. Effective the following addition in the General Budget of the Nation for the fiscal year 2000, in the sum of eighty billion pesos ($80,000,000,000), legal currency according to the following detail:
Section 1301
Ministry of Finance and Public Credit
Total National Contribution
Total $80,000,000,000 $80,000,000,000
A. Running $80,000,000,000 $80,000,000,000
Total Add $80,000,000,000 $80,000,000,000
The Accidental Conciliation Commission submits this report with the text of the reconciled articles, and the final text of Bill No. 62 of 1999 Senate, 181 of 1999 House, for which rules are dictated In order to finance the pension liability of the territorial entities, the National Pension Fund of the territorial entities is created and other provisions in the field of the loan are issued,order to be approved by the Plenary sessions of the respective Chambers.
ARTICLE 21. This is governed by its enactment and repeals other provisions that are contrary to it.
The President of the honorable Senate of the Republic,
MIGUEL PINEDO VIDAL.
The Secretary General of the honorable Senate of the Republic,
MANUEL ENRIQUEZ ROSERO.
The President of the honorable House of Representatives,
ARMANDO POMARICO RAMOS.
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 December 28, 1999.
ANDRES PASTRANA ARANGO
The Vice Minister of Finance, in charge of the Office's functions
from the Minister of Finance and Public Credit,
CARLOS FELIPE JARAMILLO JIMENEZ.
