Bold pension reform in Brazil will save $ 270,000 million

The President of Brazil, Jair Bolsonaroyou book aujourd & # 39; hui personally to the president of the chamber of MPsRodrigo Maia and the senateDavi Alcolumbre, your government's proposal on pension reform.

The Ministry of Economy led by liberal Paulo Guedes argues that the implementation of this project it could save more than 270 billion US dollars on public money in ten years.

The text is the main proposal that the super-minister of the economy presents to the legislature and that Bolsonaro publicly baderts its support, for example in your favorite communication channel, Twitter.

I followed the presentation of this project live:

During this day, Guedes and his team will deliberate on the proposal with congressional leaders and governors in Brasilia, and technicians detail the content of the reform that can be followed live:

During his stay in San Pablo, the Unica de Trabajadores Central (CUT) is organizing a demonstration against the reform and stresses that all the trade union centers of Brazil are united in their opposition to this project.

Highlights

So far, these points include the change of age to retire in women it would reach 62 years and in men up to 65 years the transition period to gradually implement the reform, which would be between 10 and 12 years.

In addition, there would be three modes of transition and a minimum contribution of 20 years of contributions. The project that had promoted the former president Michel Temer – but who did not have enough support – cIt was up to 20 years for this transition, period that Bolsonaro has significantly reduced.

Exceptions at the retirement age

The Teachers can retire at age 60, with 30 years of contributions (Currently, they need 25 years of contributions for women and 30 for men).

The rural workers and individual taxpayers can retire at age 60 without distinction of bad, with a contribution of 20 years (currently, the minimum age for women is 55, 60 for men and 15 for men).

Towards the capitalization model

This proposal also provides for creation of the capitalization modelin which the worker makes his own savings for retirement.

The government proposes this system as an alternative to the current model and the proposed capitalization it is a defined contribution plan in which the value of retirement depends on the worker's savings.

In the current distribution model, theActive workers finance the pensions of those already in the pbadive stage.

This, yes, the worker who chooses the capitalization model will not be able to go back, said the forecast secretary of the Ministry of Economy, Leonardo Rolim, stating that the worker can choose between the current pension system or the new model.

But anyway, this option will not be implemented immediatelybecause, although planned, its validation will depend on the future approval of a complementary bill by the Congress.

Solidarity Fund for a minimum wage

The project provides that guarantee the receipt of a minimum wage for which there will be a solidarity fund. While resource management for retirement will be made by public and private forecasting entities which will be activated by the regulatory body, In order to guarantee its transparency, it Folha de Sao Paulo.

Limits the accumulation of pensions and pensions

The proposal limits the accumulation of benefits – to the point of prohibiting the current accumulation of all pension and retirement benefits -. In the new text, it makes it possible to accumulate 100% of the higher value profit plus a proportion of the others, which is limited to two minimum wages.

Unify the rules for the police, the fire brigade and the FFAA

In addition to this draft CEP (Proposal to Amend the Constitution),In the next 30 days, the government will send an invoice so the military police and firefighters have the rules of retirement tables that the armed forces.

This text provides increase in minimum service time, and that the reserve army can work in civilian activities.

Bolsonaro will explain the project in national chain

AT tonight it is expected that Bolsonaro him explain to the Brazilian people what is the need for this reform, for which he will call on a national radio and television station.

During the election campaign, pension reform was one of Bolsonaro's strongest proposals. Temer has repeatedly stated that the new government should address the problem urgently.

From Plbadto Palace, they claim that the project aims to fight against the inequalities of the current pension model.

Last Tuesday, on the eve of the presentation of this draft labor reform, MPs voted against a government decree amending the law on information to increase the number of officials authorized to designate secret data. .