A Retiree's Right to Damages for a Reduced Pension Value
María Alejandra Almanza Núñez
Attorney with a diploma in Conciliation from Universidad Católica de Colombia, specialized in Labor and Social Security Law from Universidad Sergio Arboleda and in Social Security Legal Institutions from Universidad Nacional de Colombia, and a Master's candidate in Labor Law, Labor Procedure, and Social Security at Universidad Externado de Colombia. Advisor, consultant, and litigator in occupational medicine, occupational health, labor law, and social security.
Many people who retired through private pension funds were never given clear, precise, and detailed information about the differences between pension regimes — that is, about the consequences of switching from the former Social Security Institute, now Colpensiones, to a private pension fund.
That decision often resulted in poor financial conditions in retirement, a problem that only becomes apparent once retirement age is reached. In February 2021, the Supreme Court opened the door for retirees who believe their pension fund failed to meet its duty to inform them, and who suffered a reduction in their pension amount as a result, to sue the fund for full damages.
To do so, they must prove in court that the private fund deceived them or was otherwise responsible for their transfer as an affiliate — now a retiree — and that this caused a loss measured as the difference between the pension amount granted under the private regime and what they would have received under the public regime.
This right is grounded in articles 2341 and 2343 of the Civil Code, which establish that whoever causes harm through fault must repair or compensate for it. So if a retiree believes their pension fund administrator failed to meet its duty to inform them and, as a result, suffered a reduction in their pension amount, they're entitled to sue the pension fund administrator responsible for that harm.
Retirees can request a finding that the duty to inform was breached — and the resulting financial damages — at any time. Because pension payments are periodic and lifelong, this legal action never time-bars; only the individual monthly payments or differences not claimed within more than three years become time-barred.
##### How do I know if I can claim damages?
The conditions for seeking damages can be summed up as:
- Having signed the fund's enrollment form.
- The fund having failed to provide adequate information from the moment of enrollment.
- That failure having caused harm — for example, receiving a lower pension payment than would have been received under the public regime.
- Causation: had the fund properly informed the person, they would be receiving a higher pension payment now.
Do you think you're entitled to compensation for pension-related harm? At Consejurídico we have the tools you need to help protect your pension. You can contact us by clicking here.
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