Home Politics Pension Reform: Bolsonaro Negotiates with Temer Administration To Vote This Year

Pension Reform: Bolsonaro Negotiates with Temer Administration To Vote This Year

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President-elect Jair Bolsonaro said on Monday that he would work for approval of at least part of President Michel Temer Social Security reform, although he still faces resistance within his own team. “Next week we will be in Brasilia, and we will seek with the current government to approve something of what is going on there, such as the Social Security reform. If not in a whole, in part of what is being proposed, because it would avoid problems for the future government”, Bolsonaro told Record TV.

The statement of the president-elect goes against what has been said by his future Minister of the Civil Household, Onyx Lorenzoni. Yesterday morning, he ruled out using the pension reform proposed by Temer. According to Lorenzoni, the bill under discussion in the House is a kind of “patch.” “We want a long-term project, for about 30 years. One can not look at short-term cash, as in Temer‘s proposal,” he said, stating that he speaks only in his name. “I advocate reform of Social Security that is done at a single time. The current administration proposed only one patch, but the reform has to be long-term,” he said in radio interviews.

Later, in an interview with the State, the elected vice-president, Hamilton Mourao, reinforced the statement of Bolsonaro. “The president is the one who decides, but my opinion is that the” good is the enemy of the good, “so today we have a reform proposed by the current government that would solve this question in part. And it would give us the breath to do more work,” he said. “But who will decide the best course of action is the president. If it were voted it would be a good measure, it would favor us, in my view.”

Bolsonaro himself had said earlier this month that he believed that Temer‘s proposal “hardly” would be approved. The text passed by the special committee of Congress in May last year, but ended up being shelved. The Broadcasting Agency has learned that there are already talks to take advantage of the proposal. This was a suggestion by the Temer administration to the president-elect. The idea, however, is to take to the vote a new text, technically called a substitute.

Temer has already said he is willing to make an effort to vote this year at least in the House, if it is in the president’s interest. And that remains,” said the Chief Minister of the Civil House, Eliseu Padilha, responsible for the transition in the current management.

Among other things, the House proposal foresees minimum initial ages of 53 years for women and 55 years for men, advancing over two decades to the requirements of 62 years for women and 65 years for men.

“Waiting to do next year is an expensive choice,” a current minister of state said on condition of anonymity. Only in the INSS, the gap will reach R$218 billion in 2019. In the pension system of the Union’s servers, where the rules are even more benevolent, the deficit will be another R$87.5 billion. The account does not include the rhombus of states and municipalities.

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Pointed by Bolsonaro as his future finance minister, Paulo Guedes is leading the discussions on pension reform. He has already come out publicly in favor of the capitalization system, in which the retirement of a worker is the result of what he has saved individually throughout his life.

The group headed by Guedes discusses the transition period and how the system of individual accounts would be structured. Approving Temer‘s proposal would solve at least one of these axes.

Brothers Abraham and Arthur Weintraub, who participate in the Bolsonaro Pension group, are the authors of a proposal for the migration to the capitalization system. Other suggestions are being studied, among them the proposals of Fabio Giambiagi and Paulo TafnerTafner has built a model with the support of former Central Bank President Arminio Fraga.