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Facing a Deficit of Almost R$ 50 Billion, the Lula Government Proposes a Reform of Military Pensions. The Pensions of Daughters of Military Are in the Crosshairs, but Resistance Is Strong.
Amid a challenging economic scenario, the federal government is studying profound changes in the military pension system, promising what could be the largest pension cut of the last decade.
The Intervention Plan, which aims to reduce the shortfall in public accounts, was anticipated by analyses from the Tribunal de Contas da União (TCU) and has been gaining momentum in the Lula government.
For many, the adjustment is inevitable, but it promises to reignite an old clash: military versus Treasury. How far is the government willing to go to curb the crisis?
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The Billion-Dollar Deficit and Pressure for Cuts
According to a report from the TCU, the Social Protection System for Military Armed Forces (SPSMFA) occupies the second place among the most deficit-ridden pension funds in the country.
Just in 2023, the system recorded a loss of R$ 49.7 billion to public coffers.
The survey shows that the revenues of this fund cover only 15.4% of the expenses, creating a financial hole that the government is now trying to close.
Miriam Leitão, journalist from the newspaper O Globo, highlighted in her column that the Ministry of Defense had already anticipated being included in the cuts package.
The measure could bring an estimated savings of R$ 6 billion, a significant amount, but for some analysts, it is still far from enough to stabilize the country’s fiscal situation.
Decisive Meeting Between Defense and Treasury
The scenario becomes even tenser with the approach of the meeting between the government’s economic team and the Ministry of Defense, scheduled for Wednesday (November 13, 2024).
According to government sources, the meeting will be a watershed for defining the scope of the pension reforms for the military.
The Minister of Defense, José Múcio, will meet with Fernando Haddad from the Treasury to discuss critical points of the TCU report and align the required spending cuts demanded by the economic team.
Although the adjustments are considered crucial, there is resistance within the Armed Forces.
Impact on Daughters of Military and Other Benefits
One of the most controversial proposals involves the pension for daughters of military personnel, a benefit that remains active for those who entered the Armed Forces before previous changes.
Miriam Leitão, who has followed the unfolding of the negotiations, recalls that the Ministry of Defense had already been consulted on such topics, albeit informally.
If the government opts to restrict the pension, there will be a considerable impact on public accounts and a possible return of resources to the military who contributed to maintain this benefit.
This change, however, is still a matter of debate. Part of the analysts believes that the revision is necessary to balance the accounts, while defenders of the military argue that the cut in benefits affects the rights acquired over decades of service.
Difficulties in Implementation and the Factor of “Time”
According to the TCU report, a possible pension restructuring would only bring effects in the long term, mainly affecting new military personnel entering the Armed Forces.
This means that the impact on the economy will take years to be felt, something that may not satisfy the more urgent demands of the market.
Journalist Miriam Leitão adds that the recent negotiations between Haddad and the Ministry of Defense have been marked by slowness, which, according to her, has already reflected in the financial market, with a rise in the dollar and an increase in inflation.
For Leitão, this process, although typical of a democracy, generates frustrated expectations and increases pressures on the government.
What Will Be the Outcome of the Negotiations?
For now, the government remains caught between pressures from social movements that criticize cuts in social benefits and growing market pressure for an immediate response.
If the proposed changes actually affect the military pension system, the cuts could represent a milestone in fiscal adjustment, redefining pensions and eliminating historical spending.
However, the resistance within the Armed Forces raises questions about the viability of implementing the reforms quickly and effectively.
Do you believe that the government should cut military retirement benefits to alleviate public accounts, or do you consider this measure a disrespect to the rights earned by those who served the country?
É um absurdo, o que o Governo Federal deseja fazer com os Militares. E a outras classe, como por exemplo a Justiça Brasileira com salários altíssimos, ninguém vê isso. E os políticos que se aposentam com 2 mandatos. É lamentável esse País! É triste demais 😢
Greve de milico é golpe.