Brasília, January 27, 2004 (Agência Brasil - ABr) - An agreement over the value of benefits to be paid retirees and pensioners who requested that the amounts they receive be revised is almost ready. This information comes from the president of the National Syndicate of Retirees, João Batista Inocentini, who sat in on the negotiations with the Ministry of Social Security.

Most of the cases involve retirements and pensions conceded between February, 1994, and February, 1997. During this period calculations of benefits by the National Social Security Institute (INSS) failed to include a 39.67% difference in the Real Value Unit (URV).

According to Inocentini, this year the government will make restitution to retirees and pensioners who receive up to R$ 500 or are over 70 years old. He informed that the Ministry already has around R$ 6 billion for these payments. The total amount involved in the revisions is expected to come to US$ 12.8 billion.

The impasse arises for those who don't fall into these categories. In its initial offer, the government wanted to spread payment of the restitution out over four years. The associations of retirees don't agree. According to Inocentini, the government already accepts the idea of spreading payment out over two years, even though the Ministry is still analyzing this alternative. "This is a more viable proposal," he said.

With Senator Amir Lando (PMDB-RO) assuming the post of Minister of Social Security today, Inocentini believes that the agreement will take a little longer to conclude. "We understand that the new Minister will want to make changes in the [Ministry's] advisory staff, which will cause a delay in the negotiations," he admitted. (DAS)