Support Global Action on Aging!
governors reach accord on pensions
AE Brazil 16
administration of Brazilian President Luiz Inácio Lula da Silva and all
27 state governors reached agreement Wednesday on the shape of a broad
pension reform bill, Welfare Minister Ricardo Berzoini said.
Lula met with the governors during most of the day Wednesday to iron out
details of a proposal he will send to Congress next week.
outlined the following points, all of which will be included in the
of the minimum retirement age to 60 for men and 55 for women from the
current 53 and 48,
rules for current workers, allowing them to retire earlier than the 60-
and 55-year limits; the transition rules will be based on discounts from
normal benefit levels,
taxation for current and future civil service pensioners; government
retirees will be taxed at a rate of 11% on that portion of their pensions
exceeding a minimum to be set by law; the probable minimum is R$ 1,058 per
month (R$ 3.09 = $1.00); currently, civil service retirees pay no
of maximum benefit levels for civil service pensioners in order to
eliminate so-called "double dipping," the practice by which some
government workers obtain multiple pensions.
said details of the pension reform will be worked out by a technical task
force over the next few days, with a draft bill ready for Congress next
said, "There was much discussion and many changes in the details of
the proposal, but, in the end, support among the governors was
said the reform will save the government some R$ 56 billion over the next
30 years. He said the reform was designed to make the nation´s retirement