Several

Retirement with 100% of the benefit only with 49 years of contribution

12/6/2016

Transparent image

Estimated is that proposal will generate savings of R$ 738 billion to the public coffers in 10 years

BRASÍLIA - The proposed Constitutional Amendment (PEC) 287, sent by the government to Congress last night and will change the rules of pensions and pensions of Brazilians, was detailed this morning by the government. The planned changes indicate that to retire with full benefit, the worker will need to contribute for 49 years. In other words, in order to retire at the age of 65, the labor market will have to enter the labor market at 16. According to estimates, the whole of the reform can generate for the public coffers an economy of R$ 738 billion (in current values) in ten Years if measures are approved. The calculation considers the INSS and the own regime of the Union. In 2018, the cost reduction would be R$ 4.6 billion. The figures will increase over time, explained Marcelo Caetano, Secretary of Social Security of the Ministry of Finance.

Caetano said the government's expectation is to approve the PEC from the first to the second half of 2017. When asked about the possibility of approving the proposal amid the political crisis, he replied that this issue is beyond his control.

- There are political issues that are beyond my control (...) social dialogue is done at the congress. We are in a democracy, "said Caetano.

The PEC was filed yesterday evening and returned by the House Bureau immediately due to editorial errors. The final text was delivered on Tuesday morning.

The project targets current private sector workers and civil servants aged 50 and over (men) and 45 (women). They will have to reach 65 years of age and have contributed for at least 25 years to claim the benefit.

VALUE OF BENEFIT

The PEC will also change the formula for calculation of the benefit, which will be based on 51% of the best contributions, plus 1 percentage point per additional contribution year. That is, who started work at age 16, will have to contribute for 49 years to retire at 65 years of age and thus, receive the full benefit. The so-called social security factor 85/95 (adding age and time of contribution for men and women), is now extinct with the approval of the PEC.

VESTED RIGHT

The acquired right of those who already have the conditions to retire was guaranteed by the Secretary of Social Security of the Ministry of Finance. Caetano affirmed that all will contribute to the changes, except military of the Armed Forces.

MINIMUM AGE MAY CHANGE

The text provides for the automatic adjustment of the minimum age, according to the increase in the expectation of survival (after retirement) - without the approval of the Legislature. Today, this expectation is at 18 years and the government estimates that by 2060, the minimum age will rise twice (each time the expectation to rise one year).

TRANSITION RULE

For workers who are closer to retirement (over 50 in the case of men and 45 in women), there will be a transition rule, which will allow you to apply for retirement under the current rules, paying a toll: an additional 50% The time that was missing. The transition period will be 20 years - when all workers (men and women) will be subject to the same standards.

FIREFIGHTERS, MPs AND MILITARY

Caetano explained that military police and firefighters under 50 (men) and 45 (women) will be hit by permanent rules (minimum age of 65 years and minimum contribution time of 25 years). Anyone above this age group will be framed in the transition phase and who will define the changes will be the states. The exception is Armed Formed. The parliamentarians will also be subject to the INSS ceiling (R$ 5,189)

CIVIC POLICE OFFICERS

Civilian police will also be reached by retirement, with minimum age of 65 years and 25 years of contribution for men under 50 years and women, 45 years. As the category regime is differentiated (five less than the others), the transition phase will also be different. 

DEATH AND INVALIDITY

The text also foresees changes in the value of the benefits of the death pension and disability pension, which is now integral. The reform prohibits the accumulation of benefits and creates an individual contribution for rural workers, at a favored rate (which will be defined in a separate project).

PENSION BELOW MINIMUM WAGE

The PEC maintains the social security (retirement) floor tied to the policy of minimum wage readjustment - which allows real gains. The value of the pension will be lower than the national floor, as of the approval of the reform. The beneficiaries of LOAS (Organic Law of Social Assistance) paid to the disabled and the elderly of low income may also receive a value below the minimum. The age to apply for welfare benefits will increase from the current 65 years to 70 years (one year every two years). The value of the benefit is defined in law and until the approval of the new legislation, nothing changes.

PUBLIC SERVANTS

The same change in the benefit calculation formula will apply to civil servants under the age of 50. The category will lose the right to parity in salary readjustments granted to assets. With the approval of the reform, the benefits will be corrected for inflation.

STATE FUNDS

The text sent to Congress obliges states to create supplementary pension funds for their servants, within a period of up to two years. There is also the possibility that the entity joins the Union employees' fund (Funpresp). It also creates a Social Security Responsibility Law.

RURAL WORKER

PEC also handles agribusiness and ends the 2.5% exemption on revenues from exports. According to Caetano, the measure can generate savings of R$ 6 billion per year.

ADVERTISING

PRESENT AND FUTURE

In explaining the details of the reform, the Welfare Secretary stressed that the changes are necessary to ensure the sustainability of retirement schemes now and in the future.

- This reform is fundamental for the country, for my generation and for the generation of my children. It is something that thinks of the State as a whole, in the Nation, something perennial that lasts for many years and does not need new changes - emphasized Caetano.

Read more about this subject at http://oglobo.globo.com/economia/reform-for-safety-prevention-com-100-of-benefits-so-with-49-answer-contribution-20597133#ixzz4S5chAi00

© 1996 - 2016. All rights reserved Infoglobo Comunicação e Participações S.A. This material may not be published, broadcast, rewritten or redistributed without authorization.

Source: The Globe

Our news is removed in full from our partners' websites. For this reason, we can not change the content of these even in cases of typos.

This article was translated by an automatic translation system, and was therefore not reviewed by people.