Abrupt Transition in Brazil's Public Social Security System Creates Gap in the Same Generation

04/03/2017 - 14h04

They were born in the same year, have the same job and have been working for the same number of years. However, if the changes in Brazil's public Social Security system proposed by the current government are accepted without any changes, Rosana Pereira could have to wait three times longer than Paula Cintra to retire.

Rosana and Cintra are part of a generation separated by a gap created by the government's proposal - this generation includes women born in 1972 and men in 1967 who will turn 45 and 50 this year, respectively. In the proposal sent to the Brazilian Congress by President Michel Temer, those who are under those ages on the date that the changes in the Constitution are enacted will only be allowed to retire at the age of 65 and have made contributions to public social security for at least 25 years.

The changes will apply to women and men, rural and urban workers, of the private and public sectors, without any professional distinction.

Workers above these ages will be included in the transition rules and could retire before reaching the minimum age if they have contributed for the total years required today and pay an extra fee, paying for an amount equal to 50% of the time left.

It is Cintra's case, who has her birthday in January and would be entitled to the transition right.

She has been a teacher for 22 years and could retire with three more years of contribution and the total referring to 1.5 years as extra fee, near the age of 50.

Pereira, however, will turn 45 in October. If the reform is enacted before that, she will have to work for 20 more years to reach the minimum age.

Translated by THOMAS MUELLO

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