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Barroso Validates Pension Reform and Maintains Rule That Reduces Disability Retirement in Brazil, Reinforcing Impact on Insured Individuals.
Barroso Confirms Cut in Disability Retirement
Supreme Court Minister Luís Roberto Barroso voted this Friday (19) to validate one of the most controversial rules of the 2019 Pension Reform.
The decision maintains the reduction in the calculation of disability retirement in Brazil.
The trial is taking place in a virtual plenary session and is expected to continue until the 26th. So far, only the rapporteur has voted, but the outcome will have general repercussions. That is, it will serve as a reference for all similar cases in the justice system.
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How the Disability Retirement Calculation Changed
Before the reform, the benefit was calculated based on 80% of contributions. Now, after Constitutional Amendment 103/2019, the calculation considers only 60% of social security contributions.
Additionally, there is a 2% increase for each year exceeding 20 years of contributions. As a result, the amount has significantly decreased for most insured individuals.
Barroso’s Justification for the Pension Reform
Barroso acknowledged that the change is “bad,” but argued that it was a choice of the Legislative Branch. For him, it was up to Congress to address the solvency issue of Social Security, not the Judiciary.
He warned that any judicial interference in actuarial calculations could produce unpredictable effects. “Any intervention in this area can have disastrous consequences, given the large number of people affected,” he stated.
Financial Impact and Continuation of Benefits
The minister emphasized that the financial viability of the pension system is essential. According to him, without fiscal balance, it is impossible to maintain retirement payments.
In his words: “Without a doubt, it is bad not to be able to guarantee full benefits to those who become unable to work. But not everything that is bad breaches an unamendable clause of the Constitution.”
Difference Between Sick Leave and Disability Retirement
In a specific case, an insured individual had obtained the right to a more favorable calculation in Federal Court. He argued that he should not receive less in retirement than he received in sick leave.
Barroso rejected the argument. He stated that the two benefits are distinct and have their own rules. Therefore, he voted in favor of the INSS and reversed the retired person’s victory.
Pension Reform and Challenges in Brazil
With this decision, Barroso reinforces the validity of the pension reform and tightens the rules for disability retirement in Brazil.
Thus, the measure directly affects workers who rely on this benefit in cases of incapacity.
At the same time, it strengthens the understanding that the system’s priority is financial sustainability.
Therefore, the decision rekindles the debate on the balance between social justice and fiscal responsibility in the country.
