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Find out everything that changes in your life and the retirement rules that are starting to be required after the enactment of the Pension Reform this Tuesday, November 12th.
This Tuesday, the 12th, the Social Security Reform, which affects the retirement system in Brazil, was enacted by the Congress, after almost nine months of processing (the conclusion of the process occurred on October 23). Get to know the package to stimulate job creation in Brazil, launched this Monday, 11, by Bolsonaro.
Under the new rules, new workers will only be able to retire at the age of 62 (women) and 65 (men), both in the private sector and in the federal public sector, with a minimum contribution time of 15 years (for women), 20 years (for men) and 25 years for servants of both sexes.
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Teachers, police and professionals exposed to harmful agents (such as those who work in mining) have more lenient rules.
This year, the forecast is that the shortfall in the INSS and in the regimes for civil and military federal servants will reach R$ 292 billion. In a single year, the government needs to spend the equivalent of ten annual Bolsa Família budgets to cover the gap in retirement and pensions.
The president of the Senate, Davi Alcolumbre (DEM-AP), cited Bolsonaro for having sent what he classified as a “bold proposal” to the National Congress: “The basic text of the reform did not save the desired R$ 1 trillion, but it saved, yes, a lot of suffering, especially for the most vulnerable Brazilians,” he said. For him, the country needed to have carried out the reform or “we were annihilated”.
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Understand the new retirement rules
When do the new rules for retirement in Brazil start to apply? The new reform rules begin to take effect with the enactment by Congress, which happened yesterday, November 12th, so they are already in effect, just missing the publication in the DOU.
What happens to those who are already working? The reform provides for five transition rules for private initiative workers who are already on the market. One of these rules also applies to federal public servants – in addition, this category has a specific option. All modalities will be in force for up to 14 years after the reform takes effect. According to the text, the insured person will always be able to choose the most advantageous way.
How was the pension calculated? The retirement amount will be calculated based on the average of the worker's entire contribution history (not discarding the lowest 20%, as was done until the enactment of the reform). Upon reaching the minimum contribution time (15 years for women and 20 years for men), workers under the INSS regime will be entitled to 60% of the full benefit amount, with the percentage rising by 2 points for each additional year of contribution. Women will be entitled to 100% of the benefit when they add up to 35 years of contribution. Men will only be entitled to 100% of the benefit when they have 40 years of contribution.
Has there been any change in the amount of the benefit? The retirement amount will never be higher than the INSS ceiling, currently at R$ 5.839,45, nor lower than the minimum wage (R$ 998,00). The text also guarantees the readjustment of benefits due to inflation.
What happens to the person who could already retire, but did not apply before the reform takes effect? The right to retire is guaranteed based on the old rule. The calculation of the benefit, however, will follow the new rules, based on the average of contributions throughout the entire career. The calculation starts from 60% after 20 years of contribution for men and 15 years for women and is increased by 2 percentage points for each additional year, up to the limit of 100%.
Will there be changes in the rates currently paid by workers? Yes, the reform brings a change in the rate, currently 11%. Workers who receive a higher salary will contribute more – up to 14% in the INSS and 22% in the federal public service, in cases where the salary exceeds the constitutional ceiling of R$ 39,2 thousand per month. Those who receive less will have a smaller contribution, which starts at 7,5%. There will also be a union of the rates of the general regime (private initiative) and the specific regime (public servants). The new rates will already apply to salaries for February next year, paid in March.
What is the parallel PEC that will still be voted on by the National Congress? The parallel PEC – Proposed Constitutional Amendment – will allow the inclusion of states and municipalities in the Social Security reform. On the agenda of the Senate plenary, there are four amendments that try to change the text in the first round.
How are pensions for permanent disability? The benefit, which today is known as 'retirement for disability' and is 100% of the average salary contribution for all beneficiaries, with the new pension rules becomes 60%, plus 2% per year of contribution that exceed 20 years. In case of disability resulting from an accident at work, professional or work-related illnesses, the calculation of the benefit will not change. The changes affect only teachers of kindergarten, primary and secondary education. For teachers from municipal and state systems, nothing changes either, since states and municipalities were left out of the reform. It will be expected to wait for the processing of the parallel PEC.
And for those who are pensioners, does anything change? The amount of the death benefit will be reduced. For both private and public sector workers, the family benefit will be 50% of the amount plus 10% per dependent, up to a limit of 100% for five or more dependents of the beneficiary. The text also guarantees the benefit of at least one minimum wage in any situation. In the Chamber, the prediction was that this floor would be valid in cases where the beneficiary had no other formal source of income. Those who already receive a death pension will not have the value of their benefit changed with the enactment of the reform. As for the dependents of civil servants who entered before the creation of the supplementary pension, the benefit will be calculated according to the INSS ceiling.
