Product description

Pensions are an economic benefit obtained by members of the General Pension System through the AFPs (Pension Fund Administrators) and / or Colpensiones, provided they comply with the requirements required by the regime in which they are located.

OBLIGATORY PENSIONS

OBLIGATORY PENSIONS

• It is the mandatory savings that must be made by dependent or independent Colombian workers to ensure a monthly income in old age or before a disability. The beneficiaries can also receive it in the event of death of the contributer or the pensioned individual.
• If the worker is Dependent, their savings are made up of the payments that are compulsorily made each month and that are equivalent to 16% of the salary. The employer assumes 12% and the employee must contribute 4%.
• If the worker is independent, he must assume the total percentage (16%) and make the deposit.
• The transfer between Regimes has a minimum permanence of 5 years
• The transfer between Funds can be made after completing 6 months in the previous fund

Coverages

• Old-age pension: The old-age pension is a monthly income for life that is obtained at age 62 for man, or 57 for women, as long as they meet the requirements established by the regime. (Medium Premium Regime with Defined Benefit administered by Colpensiones or Individual Savings System with Solidarity administered by private funds
• Disability Pension: It is an economic benefit that ends up in a monthly payment if a competent authority defines the loss of work capacity by 50% or more, for a non-professional or voluntary cause.
• To be able to have this right, the individual must have paid 50 weeks or more in the three years prior to the date on which the illness or accident occurred.
• Survivor Pension: This pension is paid to the beneficiaries of the affiliate or pensioner who has died.

How can the individual have access to this?

Only a photocopy of the Colombian ID Card is required and fill in the form of the chosen Fund, a personalized visit can be request, where the following services will be provided:

• New Affiliations: Processing of affiliation to people who have never paid a pension
• Transfers: Transfer procedure to the preffered Fund
• To comply with the obligation of affiliation and contribution to the General Pension System and in alliance with the private Pension Funds, Correcol has a group of professionals who provide advisory services on the general pension system, offering the different alternatives of the market.

VOLUNTARY PENSIONS

Product description

It is a form of voluntary savings that provides the linked or independent worker the possibility of supplementing the mandatory pension obtained during his working life or fulfilling a different saving goal.

The Voluntary Pensions funds were created seeking to encourage workers to save their old-age pension, offering a tax benefit, however, not only for this purpose, but as savings for home purchases and other long-term goals.

The savings in voluntary pensions can be individually and voluntarily by the worker. There are institutional plans with different objectives.

Coverages

When opening a Voluntary Pension account, individuals will have tax benefits because these contributions are considered as tax exempt up to the limits defined by law and additionally have the following benefits:

• The financial returns generated by the contributions will be tax exempt while they remain in the Fund for a period of 10 years.
• Contributions are exempt from the tax on financial transactions of 4 X 1000
• To mantain tax benefits on saving, monies must remain for 10 years in the Fund or be used for housing purchases.

Additionally, Correcol will advise and carry out assesments on the following topics through personalized visits:

• Linking and opening accounts in Voluntary Pensions in the Fund of our clients preference (Protection, Porvenir, Colfondos and Old Mutual)
• Assistance and advice in financial and tax planning, offering different investment channels, either from a specific capital or through periodic voluntary savings.
• Financial simulations with different scenarios to analyze the tax impact and the benefits that can be obtained through Voluntary Pensions
• Updated information on the behavior of the Funds portfolios.
• Advice to the company on the opening and benefits of the institutional plans and structure support.
• Review of technical files of the different portfolios, behavior, profitability, administration cost and other relevant information for selection of funds.

How can we obtain it?

• Photocopy of the Colombian ID
• Signature of the selected Fund Form of your choice
• When opening the Voluntary Pension account, unique or periodic contributions can be made as well as choose in which AFP (Pension Fund manager) and in which Investment Portfolio selection depending on your Risk Profile.

PENSIONAL SWITCHING

Product description

It is a mechanism of pension standardization through which an employer who has pensions under his charge, decides to transfer these obligations definitively to Colpensiones, to an Insurance Company or to an AFP (Pension Fund Administrator) by paying a unigre sum.

This was created with the purpose that employers who face the possibility of incurring in failure to pay their current or potential pension obligations can be substituted in this obligation.

In general, any company or employer with pensions in their charge should be aware that the payment of the same, not being part of their true business mission, financially and operationally represent a weakness that reduces competitiveness.

Its purpose is to get paid to those who have or come to be entitled, the respective pension allowance in the amount that corresponds to the time of commutation, in accordance with the law or the labor union agreement.

Coverages

• Through commutation, the pension obligation is transferred in its entirety to the entity with whom it is commuted, since by transferring the sum to which the respective actuarial calculations, the obligation at the employer's expense disappears
• The insurer assumes the financial and extra-financial risks to which the pensions are subject.
• Pension administration involves a series of expenses not normally quantified in the actuarial calculation of the obligation, which threaten the operational and financial efficiency of businesses.

How can it be obtainedt?

A complete list should be provided containing:

Holder of the pension

• Name
• Birthdate
• Id Number
• Gender
• Civil status
• Amount of pension for the current year
• Type of pension
• % Health contribution by the insurer

Beneficiaries of the pension

• Fecha de nacimiento
• Género
• Parentesco con el titular

Beneficiarios temporales de la pensión

• Birthdate of the invalid child
• Gender
• Relationship with the owner

Nota: Only can include valid children under 26 years of age

Special pensions that are shared with Colpensiones

• Labor History
• Weeks of Contribution.

With this information we proceed to search for insurers in the Market who want to participate in the process of Switching through a Life Annuity and AFP (Pension Fund Administrator) who want to participate in the process of Commuting through Programmed Withdrawal.

Product description

Individual and corporate policy directed for clinics and surgeons, with which the coverage for complications of plastic surgical procedures is granted.

The main objective is to financially protect the institutions, medical providers and the patient, covering the risks during plastic surgery and the post-operative of them. In the event of a complication, the company will indemnify the medical, hospital, and surgical expenses necessary for the medical care of the same.

Coverages

The insurers will grant a coverage period of 30, 45 or 60 calendar days (depending on the contracted days) as of the date of the cosmetic surgery. In the event that a complication arises during said period, derived from the aesthetic surgical procedure performed, the company will indemnify the medical, hospital, and surgical expenses necessary and related to the complication, for up to three hundred and sixty-five days (365) calendar days counted from the date of diagnosis of the complication or up to the insured value.

How can it be obtain?

Patients can acquire the policy through the clinics and plastic surgeons who are the clients, as policyholders will be those who can issue the insurance certificate of their patients. The policy includes the personal data of the patient, dinformation of the clinic, plastic surgeon, data of the surgery, surgical procedures to be performed, insured value and premium amount.

Product description

Severance payments are a social benefit established by law at the expense of the employer and in favor of the worker. They correspond to one month of salary for each year worked. Each year they are deposited to a severance fund, which is freely chosen by the member.

The maximum period that the employer has to deposit them to the Fund is February 14, or the date of termination of the employment contract; If the employer enters into default, they must pay one day of salary for each day of default; The deposit must be made in the severance fund account that the employee chooses.

Coverages

This instrument has as its rationale to protect people when they are unemployed, however they can also be used to:

• Higher Education, of the worker, spouse or children in educational entities recognized by the State or Payment of Credits of the ICETEX
• Acquisition of Housing, their improvements or construction and payment of property taxes.

Interest is generated that corresponds to 12% per year and is paid directly to the worker, not deposited in the fund

How can it be obtainded?

• Dependent Workers: Copy of identification document and filling out form of the chosen Fund, must have the approval of the employer
• Independent Workers: Copy of the identification document and filling the form of the chosen fund
• It must take into account that for transfer of Severance Payments between Funds must have a minimum stay of 12 months in the Previous Fund