In Davos, Guedes promises social security funding plan



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<img src = "https://i.correiobraziliense.com.br/5nqTahyyHgzGE5YyhE_9bJkfhww=/675x/smart/imgsapp2.correiobraziliense.com.br/app/noticia_127983242361/2019/01/23/732469/20190123174422852640i.jpg "alt =" (photo: Ana Rayssa / CB / DA Press) [title="AnaRayssa/CB/DAPress"Lorsd&#39;undéjeuneravecdesbanquiersetdeshommesd&#39;affairesàDavosenSuisseoùilaparticipéauForuméconomiquemondialilabaduréqueleBrésilparticiperaitauForuméconomiquemondiald&#39;abandonnerlerégimeactueletd&#39;enappliquerunsurlabasedecomptesindividuelsLesinformationsontétécommuniquéeslorsd&#39;undéjeunerintitulé"L&#39"FutureofBrazil"Wednesday(23/1)alsojoinedPresidentJairBolsonaro

.About Guedes, to which the Courier had access, the minister explained that this idea would adopt a model "similar to that put in place in Chile 30 years ago" , that is, active taxpayers pay for the benefits of current retirees, by the so-called system of r apart, they will add money to their own pensions.

"The new generations live in a new system of individual accounts, managed by private financial institutions," summed up the head of the economic team.

The Minister recalled that of the 96 million Brazilians in the economically active population (EAP), the Brazilian Ministry of Labor, – the people employed or able to work and seek employment – 46 million people do not contribute to social security, which indicates, according to him, a high index of informality in the economy. "If they do not contribute and social security is already broken, what future for the system? Zero," he said.

Transio

In addition to introducing the new regime, it will be necessary to "repair" the current regime, Guedes said. Although it has not explained how to rectify this situation, the government has already indicated on other occasions that one of the main points was the introduction of ## 147 ##. 39, a minimum age for retirement, which remains to be defined.

At lunch time, the Minister also stressed the importance of a transitional period between the two regimes, saying that "it is impossible to leave all the world enter the new system because that would break the old. " He did not detail the transition rule, but pointed out that the beneficiaries of the changes will be future generations.

Seniors, according to Guedes, will have to "pay for their own mistakes". "If they voted badly, they would have to live with this old system for a while, but at least our children and grandchildren would enjoy freedom," he said.

The government is studying the mandatory capitalization of people entering the labor market from 2020, but there are other possibilities for badysis. For the moment, none of them has been confirmed by the group working on the text.

Capitalization can not be adopted immediately because it would leave the current retirees in the hands. In the current model, taxes generated by workers pay for the pensions of those who are already inactive. A sudden change from one plan to another would result in the draining of the pension fund. In other words, the funds would no longer be paid to the National Institute of Social Security (INSS) and would be invested in private banks. does its best to rebadure investors. "Of course, there is a difficulty, a difficult implementation, but we will do it," he said.

The minister said that even if there would be a series of tax reforms to send to Congress, the shipment would be between the two. According to him, priority is social security. "We will not send everything to the Congress.We will only submit one project at a time.In the case, the most urgent, that the Previdncia.The Congress knows the urgency of the reforms.They are not suicidal, "he said. During the conversation, he recalled the disappearance of the demographic deficit and the high costs of maintaining the current system.

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