March 1, 2021

The pension reform proposed by Bolsonaro takes another step in Congress

The reform of the retirement regime proposed by the government of the far right Jair Bolsonaro took another step this Tuesday in Brazil, with the presentation of a report that recommends approval to the plenary of the Chamber of Deputies, although with some alterations.

The process of the project advanced with the presentation of a report prepared by deputy Samuel Moreira, instructor of a special commission created to debate the reform, which is resisted by the parties of the minority left opposition and the unions.

In the document he presented to the commission, which must decide whether to adopt it or not as of Wednesday, Moreira confirmed that he proposes to eliminate from the government project a point that proposed ending the current pay-as-you-go system and the adoption of a controversial individual capitalization within a period of ten years.

That alteration was a blow to the Government, which maintains that the distribution system, through which the contributions of workers and entrepreneurs feed a fund with which pensions are paid, is "broken" and is the origin of the chronic deficit that present the public accounts.

Also, due to the lack of agreement with many governors, the instructor withdrew from the scope of the project the regional and municipal areas, which in the public sector would continue with their regimes differentiated from the national ones, despite the fact that the Government proposed to unify the entire retirement system .

"It clarifies, with due force, the absence of immediate effects" of the reform on the 27 states of the country and all municipalities, says the text, which still asks local administrations to move forward on similar projects.

Anyway, in relation to that last point, Moreira clarified that the matter may still be evaluated by the full House of Representatives, which may end up choosing to keep the text delivered to Congress personally by Bolsonaro last February.

The deputy instructor also suggested other alterations to the proposal presented by the Government, but maintained the target of tax savings expected, situated around the 265,000 million dollars in a term of ten years.

He also endorsed the proposal to establish a minimum age for access to retirement, which until now has not existed in Brazil and which the project places at 62 for women and 65 for men.

He also suggested slight changes in relation to the retirement of the peasants, who according to the report will access this benefit after 55 years in the case of women and 60 years for men.

Once analyzed by the commission, the report presented by Moreira, will go to the plenary of the Chamber of Deputies, which according to the government's forecasts could vote next week.

If approved, for which a majority of 308 votes out of a total of 513 will be necessary, the project must still go through the senate's approval, a procedure that would be pending for the second semester of this year.

(tagsToTranslate) reform (t) pensions (t) proposal (t) Bolsonaro (t) Congress

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