Brasília, 6/26/2003 (Agência Brasil - ABr) - The government is willing to negotiate the social security reform bill as long as the essence of the bill is left intact, declared minister of Social Security, Ricardo Berzoini, in a hearing at the Special Commission on Social Security Reform at the Chamber of Deputies. If the present text of the bill is not approved, there is a risk of the Brazilian social security system being privatized in the near future, said the minister, adding: "The way it is right now, it is just no longer feasible. In 2001, the system deficit was R$23 billion."

Berzoini explained that the system must change because it is deficitary, it is impossible to put budgetary ceilings on it, and its retirement ages are inadequate. He said changing the present system would allow the government to spend money on social programs, rather than paying sky high benefits to a few. Berzoini said a system reform would not only save money, it would attract more workers into the system. The minister said the government was working to bring an estimated 7 million workers out of the informal economy into the system.

The social security reform bill is now in Congress. Amendments to the bill can be presented up to July 3. The main points in the government bill are: changes in retirement benefits for civil servants, making retirees who get over R$2,400 pay back into the system, increasing minimum ages for retirement and reducing present benefits by 30%. (AB)