Abstract

GOMEZ, Fabio A.; LONDONO, Jaime A.  and  VILLEGAS, Andrés M.. Present value of pensions in the Public-defined Benefit Plan in Colombia. Cuad. Econ. [online]. 2019, vol.38, n.76, pp.173-205. ISSN 0121-4772.  https://doi.org/10.15446/cuad.econ.v37n76.60002.

We take a simulation approach to study the Public-defined Benefit Plan (Regimen de Prima Media) in Colombia using a Present Value method of benefits and contributions. We also propose a Pension scheme with Matching Contributions. Some consequences of this new regime are an increment for the proportion of people that achieved a minimal salary as pensions, less variability in the expected amount of the present value of the difference between benefits and contributions, as well a significant transfer of wealth to middle- and lower-income classes.

JEL: H55, J26, G22.

Keywords : Pension; Matching Contributions; Present Value; Public defined benefit Plan..

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