The University of Cauca Pension Fund, established through Agreement No. 019/10 in compliance with Law 1371 of 2009, is a unit of the Human Resource Management Division attached to the Administrative Vice-Rectorate. Its primary purpose is to execute the Co-financing Agreement with the National Government in order to guarantee the recognition and payment of pension obligations owed to current and former employees affiliated with the University’s former Social Security Fund. These obligations accumulated over the years into a pension liability for the University of Cauca. This pension liability was required to be quantified as of April 1, 1994, in accordance with the technical standards and criteria established by the Ministry of Finance. Accordingly, an actuarial valuation of the University’s pension liability was prepared from that date onward. In 2015, the Ministry of Finance approved both the legal and actuarial components of this valuation, making it the foundational document for the execution of the Co-financing Agreement between the National Government, the Ministry of National Education, and the University of Cauca.

To ensure the fulfillment of these pension obligations, an autonomous trust has been established for the benefit of the University of Cauca Pension Fund. This trust is intended to assume the obligations arising from the pension liability of the former Social Security Fund and to safeguard the financial resources that will be transferred by the Ministry of Finance once the Co-financing Agreement is executed. For this purpose, a trust company supervised by the Financial Superintendence of Colombia will be selected through a public procurement process, in accordance with applicable legal requirements.