Pension reform bill to be submitted to Congress Wednesday
Starting Wednesday (Feb. 20), the Brazilian government will face the first major challenge in the economic arena. The constitutional amendment bill reforming the country’s pension system for workers in both private and public sectors will be submitted to the lower house for consideration.
The president will go to Congress to turn in the bill, as reported today (18) by Rogério Marinho, special secretary for Social Security and Labor.
After g the text, the president will deliver an address to the nation explaining the need for changing retirement rules and how the bill will be discussed by Congress .
Last Thursday (14), Marinho disclosed some details on the piece of legislation, like the minimum retirement age—65 for men, 62 for women—and the 12-year transition period for those nearing this threshold. The deal came after talks between the president and his economic team.
Originally, the economic staff had argued for a single minimum age of 65 years old for all.
Further information
Details like special retirement rules for teachers, police officers, firefighters, field workers, and professionals working under risky conditions will not be unveiled until Wednesday. Further information on accumulated pensions and fiscal breaks for philanthropic organizations will be disclosed on the same day.
The rules for the calculation of pensions for workers in the private sector have also not been revealed. How the transition will come about for civil servants is also unknown. Whether the military will be covered in this bill has also not been talked about.
The government is also expected to outline how workers will ister a special for contributions. As it stands today, retirees and pension holders receive their benefits directly from active workers and employers.
Steps before final approval
Since the legislation has been brought forward in the form of a constitutional amendment bill, the text must be voted on twice in the lower house and the senate be backed by three fifths of deputies and senators in each vote.
The government estimates that the pension overhaul will make it possible for the government to spare up to $270 billion in the coming ten years.
