Pension Reform: Main points

BRAZIL POLITICS - Report 20 Feb 2019 by Murillo de Aragão and Cristiano Noronha

Today, President Jair Bolsonaro delivered to Congress the proposal for Pension Reform. According to the government, the core principals of the proposal are the creation of a fair and egalitarian system, in which those who earn less pay less; guarantee of the sustainability of the system; greater social protection for the elderly; guaranteed preservation of acquired rights; and, an option for the Capitalization regime. The text was delivered to the Lower House, where the proceeding will begin.

The military was not included in the proposal. According to the special Secretary of Social Security and Labor, Rogério Marinho, a bill specifically dealing with the military will be sent to the Legislative in 30 days.

The impact of the proposal will total R$ 1.072 trillion in savings in ten years. When we add the effect of the changes to retirement for the military (R$ 92.3 billion), the impact of the reform will reach R$ 1.164 trillion in ten years.

In the first four years, the impact will be R$ 168 billion. The changes to the retirement rules of the military would have an impact of R$ 28 billion in the first four years. With this, the total impact would be R$ 189 billion in the first four years of validity of the measures.

We discuss the main points of the proposal in our report.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.