Brazil’s Government Finalize Pension System Reform

By Lise Alves, Senior Contributing Reporter

RIO DE JANEIRO, BRAZIL – After weeks of rumors and uncertainties, President Jair Bolsonaro and the government’s economic team have announced they have decided on the pension reform proposal the Executive will be sending to Congress for approval.

According to the new social security proposal, a minimum age of 65 for men and 62 for women will be established for Brazil’s new pension system.

“The president has made his final decision and asked us to release only a few details. The details of the text will be revealed on the (February) 20th,” said Social Security Secretary, Rogerio Marinho.

Marinho, along with Economy Minister, Paulo Guedes, Chief of Staff, Onyx Lorenzoni, and Government Secretary, Carlos Alberto dos Santos Cruz met with President Bolsonaro for about two hours on Thursday to decide the final version of the project.

This was one of the first work meetings between Bolsonaro and his ministers since the President returned from São Paulo after his 17-day hospital stay.

Marinho said the Administration’s economic team backed a version where the minimum age for men and women to retire were the same, 65. The President disagreed with the minimum age for women – he wanted 60 years.

Also discussed was the transition time for the reform. Guedes and his team wanted ten years while Bolsonaro wanted a twenty-year transition period to the new system. The Administration settled in twelve years to implement entirely the new system.

After signing the text of the reform, next Wednesday, Bolsonaro is expected to make a televised address to the nation to explain the need to change the rules for retirement in the country.

“The President will make a statement to the nation, explaining how this new Social Security will be sent to Congress for discussion. And we hope it will be approved soon,” concluded Marinho.