Brazil's Senate Approves Pension Reform

"This victory, which opens the way for our country to take off forever, is yours!, wrote Bolsonaro

Brasília

The Federal Senate approved yesterday the main elements of the pension reform, which alters the retirement of at least 72 million workers in private and public employment.

Senators approved the base text 60 to 19 and are voting today for two highlights on special retirement. The proposed amendment to the Constitution will be promulgated by Congress, which is expected to await the president's return on a trip to Asia.

The Senate holds a final vote on pension reform in Brasilia, Brazil, Tuesday, Oct. 22, 2019 (Foto: Pedro Ladeira/Folhapress, PODER) - Folhapress

The wait will only be deference because Bolsonaro acted little in articulation with the parliamentarians. In more than eight months of negotiation, Paulo Guedes (Economy) and Rogério Marinho, Secretary of Social Security and Labor, were the protagonists.

Despite the concessions made in the process, the main pillars of the reform, such as minimum age and progressive contribution, were maintained. This expected savings changed from R$ 1.2 trillion to a maximum of R$ 800 billion in ten years.

Those who are already active will be able to retire before their ages, respecting the transition rules: there are five for INSS and two for those in public employment.

The vote reverberated in the stock market, which reached a record high of 107,381 points.

Translated by Kiratiana Freelon

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