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The first concrete project of the social security reform that will be presented to Congress shows that the Bolsonaro government will accept the failures of the proposal made by the team of Michel Temer and will buy at the same time fights given as lost in the process of the last project. It has been made public by the State of São Paulo and a reform project takes up almost all the points debated after 2016, as well as important changes in the transition rule.
The project presented in this second (4) can of course be more of a "test balloon" to test the point of view of Congress on Friday. Its wealth of detail, however, indicates that it is a final test to meet expectations before the text is officially brought to the attention of MPs and Senators.
ALSO READ: The minutes of the pension plan carries the minimum age of 65 for men and women
According to the text submitted to public opinion , the team of the Minister of Economy, Paulo Guedes, decided to buy some fights lost by Temer during the special commission that debated his proposal, presented at the end of 2016. The more symbolic is the minimum age of 65 for men and women. . In Congress, the project report lowered the minimum age of women to 62 years. This is a controversial point. Age equality is defended by those who think that it is not up to welfare to correct the distortions of the labor market, such as women's difficulties in reconciling maternity and work.
Another fight lost by Temer is the individual contribution of rural workers, with a minimum age equal to that of men and women. The special commission decided not to change the rules for this audience. The difference between the Bolsonaro project and that of Temer is that, in the second case, the minimum age suggested was 65, equal to that of the urban worker. The current staff seems to have understood that he could not move forward for the moment and is content to raise the minimum age for women (currently, the age of retirement in the field is 55 years for women and 60 years for men).
The reduction of expenses with the benefit of continuous service (BPC) also returned to the agenda, after being rejected by the commission. The idea now is to make sure that the benefit is gradual and is no more than an income supplement, instead of becoming a retirement for low-income people who have not made enough contributions for social security.
Several points show that the current team has learned from the Temer project, accepting the defeats. The original project of the previous government provided for the granting of full benefits, only with 49 years of contribution. The goal was to reduce the pension replacement rate, which is quite high in Brazil compared to other countries. The text from the commission was already 40 years old, which remained in the project that was made public.
Another defeat accepted is the minimum contribution period. The 2016 proposal was trying to make its appearance 25 years after a long transition. He could not and the current 15 years were in the commission. A minimum period of 20 years is under study, a compromise that could make the idea more acceptable. This time would allow for a 60% retirement, a percentage also predicted in the text that left the committee.
The victory of the previous team was maintained: the retirement of servers aged 65 years old. This means, in practice, anticipating the minimum age for staff recruited before 2003. It is now proposed to ensure that the minimum contribution period is 25 years in the public sector, more stringent than for those who take their retirement via the INSS.
In addition, there is another point that makes the proposal more "popular", the minimum age of 65 for politicians. Of course, they will apply a transitional rule and may opt for the current system in the case of parliamentarians. But it is important that the question becomes clearer than in the previous proposal.
In addition, the limitation of the accumulation of pensions and pensions (what the initial proposal of Temer had attempted to prohibit) and pensions by death. It does not seem to be new here.
What does not close at first sight is the story. The draft is located halfway between the initial project of the Temer team and what was submitted to the House committee. It remains to be proven that it will be enough to show an economy exceeding 1,000 trillion rand in a decade, said Paulo Guedes. You can stay a bit below this limit.
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