The pension plan proposal provides for an automatic increase of the minimum age



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RIO – If the preliminary proposal of
Jair Bolsonaro's government pension reform approved by Congress
the mandatory minimum age for retirement will increase with life expectancy. Thus, in the future, it will be possible to postpone the retirement, without changing the Constitution or the bill, which requires in-depth negotiations with society and Congress.

The device that guarantees this automatic increase is described in the transition rules of the civil servant and the private initiative workers. He predicts that by 2039, with the increase in the 65-year-old's survival over six months, the number of points (sum of age and contribution time indicating when the taxpayer may retire) will increase by one point. The transition table for people on the labor market starts at 86 points for women and 96 for men, increasing by one point to 105 for men and women in 2038.

– It is therefore not necessary to re-discuss the issue of changing the minimum age. He already puts in the law this future change. Starting in 2039, with the end of the transition, the sum of points continues to increase by one point every six months, said economist Luís Eduardo Afonso, professor at USP. If the population lives longer, the minimum age will be increased. Belgium in 2030, Finland in 2027, Greece and the Netherlands in 2021, Italy and Portugal are examples of countries that raise the minimum age as the expectation of life increases.

– International experience switches to automatic adjustments when important changes to variables – says Afonso.

The economist also draws attention to the prediction made in the proposal for automatic adjustments taking into account the difference in the increase in life expectancy of men and women:

– The life expectancy of men is lower because of urban violence. If the violent deaths are reduced, the survival of the man increases more than that of the woman. And there will be a difference in age.

The proposal also provides for minimum age corrections, differentiated by rural and urban activity.

– Separation by bad has a more operational logic, but the projected expectations of the urban and rural population will complicate the system. It is not trivial to do this, there is migration and changes of activity throughout life. On the outside, there is no consensus – says Afonso.

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