The pension application under Rule 85/95 ends on the 30th; integral profit becomes more difficult | Economy

Under the current rule of the 85/95 formula, the amount between the age and the time of the contribution in the case of a woman must be at least 85 years old and, in the case of a man, 95 years old for the worker to have the right to retire with all the benefits. Starting in 2019, this amount will increase by one point for both, with 86 for women and 96 for men, according to INSS.

Men and women who have reached the minimum contribution period (35 years for them, 30 for them) can also retire without reaching this score of 85/95. But in this case, the value of retirement is reduced by the social security factor.

This mechanism reduces the value of retiree benefits based on contribution time. The formula, created in 1999, is based on the age of the worker, his period of contribution to the INSS and the expectations of survival of the insured. The lower the age at retirement, the greater the benefit reduction.

Thus, as of December 31, workers will be able to opt for the non-incidence of the social security factor in the calculation of their retirement when the total resulting from the sum of the age and the contribution period , including fractions, at the date of application for the pension, is equal to or greater than 86 points, if it is a woman; or 96 points, if masculine.

Insured persons must therefore pay attention and check whether they have already obtained the required score in order to benefit from the most advantageous calculation.

Certain situations may increase the total contribution time, by means of evidence, such as work in unhealthy activities, the period of enrollment in the army, the period of study at the technical school and the actions workers who recognized the link.

If the worker does not reach the score of 85/95 by April 30, he can still claim retirement during the contribution period, but the calculation of the benefit will take into account the reduction of the social security factor . Those who reach the score do not lose the right to the benefit even if they can not claim the benefit until the 30.

Insured persons can apply for retirement through the application or the site My INSS – the date is from the appointment and not the presence at the station.

Simulations carried out by the Brazilian Institute of Social Security Law (IBDP) show that the reduction of the social security factor reduces the value of retirement by more than 30%.

Figures from the Ministry of Labor and Social Security show that between January and August of this year, the average value of pensions for the duration of contributions, with the effect of the 85/95 formula was R $ 2,860. This amount is 44% higher than the average pension paid by contribution time with the application of the social security factor (R $ 1,980).

The law that created the 85/95 formula establishes a progression for this calculation because of the increase in life expectancy. The sum advances by one point every two years. On December 31, the rule becomes 86/96. In December 2026, there will be 5 more points, women needing 90 points to retire and men 100 points.

But there is no guarantee that progress will go so far, as President-elect Jair Bolsonaro (PSL) defends the evolution of social security as of 2019.

The recoveries of the system of social security were not enough to cover expenses with pensions and pensions. The average age of retirement in Brazil is one of the lowest in the world.

In 2017, the average age of retirees, by age, was 61 years and that of retirees, by 54.5 years, according to data from the INSS.