Publish date | 11 July 2019 |
Issue Number | 4738 |
Diary | Legalbrief Today |
Brazil's lower house of Congress has voted by a large majority to overhaul the country's generous pension system. The vote, with 379 in favour and 131 against, is seen as an important victory for President Jair Bolsonaro, whose government says the reforms are critical to boosting the growth of the economy, notes BBC News. But the controversial Bill requires a second vote in the lower house before moving to the Senate where it faces weeks, or months, of more debate. Proposed reforms include raising the retirement age and increasing workers' contributions. Trade unions and opposition politicians argue that such moves would penalise the poorest, forcing them to work longer. As lawmakers voted, demonstrations led by trade unions took place across Brazil. In Sao Paulo protesters closed down one of the city's main avenues. The government's plan includes raising the minimum retirement age to 65 for men and 62 for women. Many Brazilians currently retire in their mid-50s on their full final salary. The new proposal would delay a full payout of pensions until 40 years of contributions had been paid in, but partial pensions could be accessed after 15 to 20 years. The government estimates the plan would result in savings of $237bn over the next decade, and would be phased in over 12 to 14 years.