In today’s issue: Government presents much-anticipated pension reform bill. Can the pension reform pass in Congress?
Government presents much-anticipated pension reform bill
President Jair Bolsonaro and Economy Minister Paulo Guedes presented their much-anticipated bill to overhaul Brazil’s expensive pension system. We break down the main changes to the current framework:
- The minimum retirement age will be of 62 (women) and 65 (men). For teachers, it will be 60. Police agents can retire at 55, as long as they have worked for 25 years (women) and 30 years (men).
- To be eligible for retirement pensions, workers will have to have contributed to the system for at least 20 years—and full pensions will only be obtained after 40 years of work.
- Retired people still in work will lose the right to withdraw money from the severance fund FGTS, and see their pensions cut by 40%.
- Private-sector workers and civil servants will be part of the same pension system. For the former group, contribution rates go from 7.5% to 11.68%; for state agents, it will go up to 22%, depending on salary. The