Brasília, 7/18/2003 (Agência Brasil - ABr) - Commenting on the "Pimental Report," which made changes to the government's social security reform bill, minister of Social Security, Ricardo Berzoini, declared that the option for full-pay retirement will probably be used by only 50% of federal civil servants. The reason, the minister explains, are the rules for eligibility: men will have to be at least 60, with 35 years of contributions to the social security system. Women will have to be at least 55, with 30 years of contributions. Both will have to have been civil servants for 20 years; 10 of those years on a specific "career track."
As for parity [which, in this case, means that retirees get pay raises active service civil servants receive], Berzoini points out that it is only partial: it affects only the fixed salary part of wages.
With regard to the sub-ceiling (subteto), setting a ceiling on benefits at 75% of the salary of a Supreme Court judge, Berzoini said that it was necessary to safeguard the system's budget.
Pensions got special attention in the report with the result that it was decided to leave benefits of up to R$1,058 untouched, but reduce benefits beyond that limit by 30% or more. The minister explained that the exact amount to be discounted would depend on various factors, such as age, degree of financial dependence and number of children.
Berzoini announced that the government was pleased with the report on the reform bill and said that he believed the grievances of all concerned had been taken care of.
However, when the reading of the text of the report on the bill was completed, there was a tumult in the corridors of congress as civil servants protested against the ceiling of R$1,058 on pensions, which they believed would be set at R$2,400.
Analysis of the report (by deputy José Pimentel (PT-CE)) begins next Tuesday at the Special Commission on Social Security Reform. The government's task now is to guarantee quorums for all sessions so that a vote can occur next week on the Pimentel report.
SUMMARY OF NEW BILL'S PRINCIPAL POINTS
Pensions: the original bill set a ceiling at 70% of benefits a deceased civil servants would receive. The new proposal guarantees that R$1,058 will be untouched by any discounts. But anything above that may be reduced by as much as 70%.
Full-pay retirements: the original bill elimiated full-pay retirements for civil servants. The new bill preserves them, but with rigid eligibility rules.
Parity [same pay for active and retired civil servants]: the original bill eliminated this. The new bill preserves it partially.
Taxing retirees: this is the only part of the bill that does not change. All retirees (federal, state and municipal) will pay an 11% tax on benefits above a ceiling of R$1,058. (AB)
