Mariana Jungmann        Reporter Agência Brasil

Brasília – Yesterday the Senate approved a bill creating new social security funds for federal civil servants (“...fundações de Previdência Complementar do Servidor Público Federal – Funpresp”). Although the government originally wanted only one fund for all civil servants, pressure from the judicial branch especially, resulted in the creation of three separate funds, one for each branch of government (“Funpresp-Exe, do Poder Executivo; a Funpresp-Leg, para o Legislativo; e a Funpresp-Jud para o Judiciário”).

All this is the result of heated debate that has lasted for over a decade and a bill that lingered in Congress for five years. The objective is to deal with the “special” social security system annual deficit caused by one million retired federal civil servants that is bigger (R$60 billion) than the deficit the “general” social security system has with 25 million retirees in the private sector (R$36 billion).

Under the provisions of the new system, federal civil servants who enter the government now will have their retirement benefits limited to the same ceiling as workers in the private sector; that is, R$3,916.20. If they want more they have to contribute to the new Funpresp funds. Thus, besides the 11% contribution to the general system, they can contribute at least another 8.5% to Funpresp that will be matched by the government.

The new rules will only apply to those who enter federal civil service after the law is promulgated (which should be in a few days). Those already working for the government will continue to receive their full salaries upon retirement, which means that the deficit will be brought under control, according to the government, sometime after 2047.

Allen Bennett – translator/editor The News in English

Link -  Senado aprova projeto de novo modelo de previdência complementar para o servidor público federal