The Proposed Amendment to the Constitution that reforms the pension system of workers in the public and private sectors will be sent to the National Congress, where it will begin to process in the Chamber of Deputies, on Wednesday (20). It will be the first major challenge of the federal government.
According to the spokesman of the Presidency of the Republic, Otavio Santana do Rego Barros, the proposal will be presented at 9.30. After the presentation of the text, a meeting should be held between the team of the Minister of Economy, Paulo Guedes, and governors to “clarify the proposal“ presented.
The latest details of the text, according to the spokesman, were dealt with on Tuesday, Feb. 19th. “The Ministry of Economy will correct some small details to present the proposal tomorrow [today] to Congress,“ said Barros.
Rego Barros also pointed out that a statement from Bolsonaro in a national chain is currently scheduled to defend and detail to the population the points of the proposal that will be processed in the Congress.
Last Thursday (14), the Special Secretary for Social Security and Labor, Rogério Marinho, advanced some details of the text, which was closed in a meeting between President Jair Bolsonaro and Economy Ministers Paulo Guedes of the Civil Household, Onyx Lorenzoni, and the Secretary of Government, Carlos Alberto dos Santos Cruz.
The points revealed so far are the minimum age of 65 for men and 62 for women, with a transition schedule of 12 years for those close to those ages. The agreement was the result of a negotiation between the economic team and President Bolsonaro.
Originally, the economic team had asked for a unified minimum age of 65 for men and women, for workers in the public and private sectors. The president would like a minimum age of 65 for men and 60 for women. The economic area defended ten years of transition, the president requested 20 years.
Only today will be revealed details not yet disclosed, such as the proposal for special retirements of teachers, police, firefighters, rural workers and professionals working in unhealthy environments. Proposals for rules such as the accumulation of pensions and pensions and possible changes in tax exemptions for philanthropic entities will also be informed.
It remains to be seen how the social security factor will be used to calculate the value of the benefits of private sector workers based on life expectancy, and the 86/96 scoring system, the sum of contribution years and age, currently used to define the retirement for private sector workers. In relation to public servants, it does not yet know what will be the proposal for the transition rule.
The government will also inform how it will include in the proposal the change to the capitalization regime, in which each worker will have a personal account in which he will contribute to the retirement. Currently, private and public sector pensions are structured based on the distribution system, where the active worker and the employer pay the benefits of retirees and pensioners.
To make regime migration viable, the government has to include a provision in the Constitution that authorizes the sending of a bill – supplementary or ordinary – to introduce the new model after the approval of the reform. It will also be revealed if the government will send the project to reformulate the Welfare of the military with the PEC or another time.
The government estimates that the reform will allow savings of $ 800 billion to $ 1 trillion over the next ten years. Since it is a PEC, pension reform needs to be voted in two rounds in the House and Senate, with the support of at least three-fifths of the deputies and senators in each vote.