The Colombian pension system inherited from long ago a great pension liability as the result of decades during which the contributions for his financing were lower than the benefits received by the workers, or just these contributions were not made, that is why the system is nowadays underfunded.

Looking for the financial sustainability of the system and due to the lack of knowledge of the real value of the pension liabilities of the territorial entities (Departments, municipalities and capital cities), there was created in 1999 the National Fund of Pensions for the Territorial Entities FONPET, as a fund with individual accounts in the name of each territorial entity with the aim to supply the necessary resources to cover the above mentioned liabilities. It is a schematic of obligatory saving that allows them to accumulate the necessary resources to cover the above mentioned liabilities, which come from the Territorial Entities and from the Nation and are administered by the Treasury Department through autonomous heritages handled by fiduciary and pension funds. The above mentioned Fund does not substitute the territorial entities responsibility of handle his pension liabilities, it is just a provisioning mechanism to establish the respective reservations by the territorial entities.

Because of the insufficient and inadequate information about the employment history that allows the quantification of the pension liabilities, it was designed a computer program named PASIVOCOL, through which the Territorial Entities can obtain an actuarial calculation and know the goal of provisioning related to the saved resources. This project was projected for 30 years starting in 1999.

The Law ordered to the Treasury Department and Public Credit, to design a unique methodology to generate actuarial calculations, for both the territorial entities and the decentralized ones that depend on them, this methodology has been implemented.