Rapporteur proposes new formula for the calculation of retirement

18/02/2009 05h20

On Monday (16) , the Deputies Paulo Pereira da Silva (PDT-SP) and Pepe Vargas (PT-RS) informed that there is already a consensus among union centrals and the government in the text of the Bill 3299/08, proposed by the Senate, to guarantee the retirement after 35 years contribution for men and 30 for women, without the requirement of a minimum age.

Pepe Vargas proposes that the “formula 95” be adopted, through which the worker would have the right to a integral retirement if the addition of the person’s time of contribution and his/her age reached 95 years, for men, and 85, for women.

Paulo Pereira da Silva is the President of the Union Force, and Pepe Vargas is the rapporteur on the bill at the Committee on Finances and Taxation. In São Paulo, they participated in a meeting with representatives of union centrals, to debate the bill, which extinguishes the social-security factor – a rate for the calculation of the value of social-security benefits, which related the age of the retirement of the worker with the time of contribution, with the life expectancy at the moment of the retirement.

The rapporteur and the centrals do not approve the use of the average of the last 36 months of contribution as a calculation basis for the benefit, since frequently workers earn less in their last years of Professional life.

Life expectancy
The rapporteur will also propose the freezing of the so-called “mortality table” at the moment in which the worker completes his contribution time. Since life expectancy in Brazil has been increasing, Brazilians need to contribute for a longer and longer time to reach integral retirement.

Pepe Vargas believes that the presentation of the rapport at the Committee on Finances and Taxation will happen in March.

Report - Marise Lugullo
Editing - João Pitella Junior
Translation – Positive Idiomas Ltda