Passing provisional decree gives indication of upcoming pension reform battle

Jair Bolsonaro waves inside the Congress building

On January 18, 2019, President Jair Bolsonaro’s economic team issued MP 871/19—a provisional decree which cracked down on fraud in the social security system. The bill will serve as a good thermometer of exactly how much political capital the government has in Congress, in the lead up to the heated debates on the pension reform bill.

MP 871/19 aims to scrutinize the benefits given out by the pension system—trying to contain the massive drain caused by frauds and irregularities on several fronts. Besides more oversight, the bill establishes stricter eligibility rules for the benefits in...

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