The Proposed Social Security Reform Will Have a Capitalization Regime, Guedes says – Understanding



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Economy Minister Paulo Guedes said on Tuesday that the pension reform bill to be submitted to Congress in February will include a capitalization scheme.

In this model, the worker finances type of savings to ensure their retirement in the future. Under the current system, badet contributions are used to pay retiree benefits.

Guedes met Tuesday with the Minister of the Civilian Family, Onyx Lorenzoni. At the end of the meeting, they both stated that the capitalization scheme would be in the same text, which would bring stricter rules to the current social security system.

the cost of transition is high, but we are working for future generations. "

In December, Guedes had stated that it would be necessary to first solve the problems of the current system and then migrate to the capitalization regime.

The two ministers did not specify The format of the reform and the timeframe in which the new regime would be implemented Guedes and Onyx said the text presented to President Jair Bolsonaro would be profound and allow the government to propose a reform of the social security system, which will be presented to Bolsonaro next week

Brazil

Bolsonaro said, for example, that the minimum age of retirement was not the same as that of the Brazilian economy. could be 62 for men and 57 for women.The text of the government Michel Temer, approved by a special committee of the House, however, establishes 65 years for men and 62 years for women.

"We want democracy saving, accelerating growth, boosting productivity growth, generating employment. So it's a much deeper reform, "said Guedes.

The minister explained that the definition of minimum age was still under study. He also said that a political badessment would be made to know whether or not to use the version of the text sent by Temer

"We must present a proposal and our goal is that Brazil, in the next 20 years, does not speak more pension reform, "said Onyx.






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