Paulo Guedes advisors want to avoid capitalization now – 18/01/2019 – Market



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The members of the advisory group created by the Minister of Economy, Paulo Guedes, to discuss the proposal for social security reform, argue that the government is abandoning the idea of ​​trying to approve the exchange of the capitalization plan this year. ] Guedes is enthusiastic about work, so that Welfare is replaced by a model in which each worker realizes his own savings

Under the current system, all workers contribute to a single fund.

According to government forecasts, the National Institute of Social Security (INSS) is expected to close 2019 for a total of 218 billion re. Guedes invited independent economists to participate in consultations on the subject.

The advisory group is composed of Fabio Giambiagi, José Márcio Camargo, Aloísio Araújo, Solange Vieira and Paulo Tafner, author of a reform proposal in partnership with the former president of the Central Bank, Armínio Fraga

On Friday (11), the special secretary of

Marinho presented to President Jair Bolsonaro the studies and possibilities envisaged by the government to close a reform proposal to be presented until Sunday (20) and sent to Congress in February.

The majority of the advisory group was against Guedes' strategy – to try to approve the change of capitalization regime at the same time as the creation of

For Giambiagi, Camargo and Araújo, the government should focus its efforts on persuasion and political negotiations so that Congress can approve changes to pension rules to reduce the deficit.
The Guedes team proposed a minimum age to avoid early retirement, as well as stricter rules for death benefits and multiple benefits.

In addition, the Minister announced his intention to propose to replace the scheme by providing for the creation of a pension system.

The minister's idea is to try to approve the minimum age, the stricter rules and capitalization in the same text to send to Congress.

According to Tafner's idea, the new regime would begin in 2030 for those who have the first portfolio signed, but the Guedes team did studies to suggest a system change even earlier

" The simpler the proposition, the better it is. "Or else people will not understand," said Camargo, who criticizes Tafner's suggestion.

He fears that by mixing up the age and the capitalization in the same project, the reform could

Giambiagi feared that the discussion would dissipate and that the adjustment measures of social security accounts would not be badyzed properly

"What is the Advantage of investing political capital in something that does not change practically anything? he asked.
Araujo says that he does not believe that the scheme in which every worker has an account is ideal for Brazil.

According to him, the country has progressed in recent years in the field of private pensions, with a more robust pension fund market, (19659002) "It is not worth going further. discuss further and look for alternative systems, but before that, the reparamétrisation [que prevê a idade mínima para aposentadorias do atual regime] should arrive soon, "said

. Tafner, meanwhile, argues that a capitalization program for the middle and upper clbades is the best way to reform the welfare system.

"Funding continues with a distribution system and separates those who receive higher wages – good news for the country," he said.

Thursday (17), the text of the MP (Provisional Measure) that will do business in the INSS was sent by the economic team to the Civil House and waits for the latest technical adjustments before to be signed by the president

Bolsonaro must sign the text until the end of the week

Talita Fernandes collaborated

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