Save the date: Brazil’s pension reform
The pension reform’s rapporteur in the House, Congressman Samuel Moreira, will present his report today before a special committee analyzing the reform. The document is the result of political negotiations, and is more palatable to party leaders than the original bill. However, it shouldn’t provide the same amount in savings for the next decade. On one hand, Mr. Moreira has kept the minimum retirement age at 65 for men and 62 for women. Three important points were left out:
- No changes to pensions of rural workers, nor cuts to benefits given to poorer elderly citizens;
- A lower length of service for women to become eligible for pensions, from 20 to 15 years. (For female teachers, the minimum age of retirement could go from 60 to 57.)
- The idea of “removing” pension rules from the Constitution has been scrapped. The provision made sure that Congress would only need to pass new ordinary laws (and not constitutional amendments) to make future changes to the pension system. That move takes leverage from Congress.
Two other big important decisions were made:
- The report...