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The Federal Government Targets ‘Fictitious Death’! Pensions for Families of Expelled Military Personnel May Be Cut. The Measure, Which Consumes R$ 25 Million Annually.
The federal government is willing to make bold cuts in public spending, and a little-known but controversial benefit may be in its sights.
Have you heard of ‘fictitious death’? This mechanism, which maintains pensions for families of military personnel expelled from the Armed Forces, is about to enter national debate.
Among the various adjustments proposed by the economic team led by Fernando Haddad, the end of this benefit may be the next major change to impact public accounts.
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The measure is part of a larger package aimed at reversing the fiscal deficit and creating a balanced budget, but discussions are still in the early stages.
What Is ‘Fictitious Death’?
The so-called “fictitious death” is a mechanism provided for in the Law 3,765 of 1960, which grants pensions to the families of military personnel who have been deemed unfit and expelled from service.
These professionals, although discharged, are classified as “dead” administratively.
The benefit remains guaranteed because part of the salary of these military personnel, while active, was allocated to the pension fund.
Despite its limited impact on public finances — about R$ 25 million per year, according to data from June 2024 from the Armed Forces — the benefit generates controversies.
Critics point out that it is outdated and contradicts the austerity efforts proposed by the government.
Why Is the Government Studying the End of the Benefit?
The proposal for a cut emerged during a meeting between the Ministries of Finance and Defense on October 13.
According to the website Poder 360, President Luiz Inácio Lula da Silva asked the ministries to discuss the possibility of adjustments to the military benefits system.
In addition to Minister Haddad (Finance), the meeting included José Múcio (Defense) and specialized technicians.
Haddad emphasized that technical teams were made available to analyze the impacts of the measure.
“We will see if we can, in a timely manner, include a few more measures in the set already agreed upon,” he stated after the meeting.
However, so far, no official decision has been announced.
The expectation is that the topic will be revisited after important events on the calendar, such as the G20 Summit and the Black Awareness Day holiday on November 20.
A Broader Package for Public Accounts
The government’s economic team is working with ambitious goals to balance public accounts.
The main objective is to achieve zero deficit by 2024, which requires increased revenue and deep cuts in mandatory expenses.
Among the actions being considered are:
Review of the minimum wage, limiting the increase to 2.5% above inflation;
Changes to benefits such as BPC (Continuous Benefit Program), unemployment insurance, and wage bonus.
The potential savings from the package could reach R$ 70 billion over two years, according to signals from the Finance Ministry to Congress.
However, these measures face internal resistance and raise concerns about the political cost, potentially impacting the government’s popularity.
Impacts on Defense and Other Ministries
In addition to Defense, other ministries have already been called to discuss the cuts:
- Education (Camilo Santana);
- Labor and Employment (Luiz Marinho);
- Health (Nísia Trindade);
- Social Development (Wellington Dias);
- Social Security (Carlos Lupi).
The debate over military pensions is particularly sensitive, given the history of privileges associated with the Armed Forces.
Changes in this sector may cause political turmoil and negative reactions, especially among groups that support robust benefits for public servants.
A Controversial Reform
Although the amount spent on “fictitious death” represents a minimal fraction of the budget, the debate about its elimination goes beyond financial impact.
The measure is seen as symbolic, representing an effort to review benefits that do not align with current economic needs.
However, experts warn that this targeted saving will not significantly resolve the fiscal deficit.
Still, the government is betting on building a comprehensive package, with the support of Congress and other levels of public administration.
The decision to cut pensions for families of expelled military personnel is expected to generate heated debates in the coming weeks. Do you think this measure is fair, or do you believe other cuts would be more effective in balancing public accounts?
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