After weeks of anticipation, member of Congress Samuel Moreira finally presented his report on the pension reform yesterday, dissipating some of the doubts surrounding the most important bill proposed in Brazil this decade. His version of the reform plan is set to save BRL 913.4 billion in ten years, enough to help give some balance to Brazil’s public finances, but still below the BRL 1.2 trillion originally intended by Economy Minister Paulo Guedes wanted—a requirement, in his words, to stimulate investments and eventually foster job creation.
In his report, Mr. Moreira excluded some controversial points of the original draft, such as cuts to benefits given to poorer elderly and disabled citizens. He also excluded state- and municipal-level civil servants from the new retirement rules. Centrist parties believe state lawmakers and governors didn’t make enough of a case for the reform with their voter base—and that Congress would be the sole bearer of the political burden of the unpopular pension reform.