To fix Brazil’s pension problem, President Michel Temer needs 308 votes in favor of an unpopular bill to increase the pension age.
Unions are opposing the pension proposal because it would not only set a minimum age for retirement—65 for men and 62 for women—but will also cut Social Security benefits. Economists argue the reform is a necessary component in balancing the country’s budget. Brazil’s Social Security system currently allows for an average retirement at age 54 with almost full benefits.
Just last week, Temer gained support from 263 coalition members that ceased an obstruction of justice investigation, which would have been grounds for impeachment had it not gone his way. The pension overhaul was the government’s top priority until it hit a snag with Temer’s scandal in May.
Temer tapped House Speaker Rodrigo Maia on Sunday to strategize how he would achieve his goal of receiving the required votes. His goal is to have a law signed by September.
“I think we will have political conditions to approve [the pension reform] in coming weeks,” Maia told Brazilian newspaper Folha in an interview published Sunday. “Of course, nobody would be able to do a perfect reform, but it can be more than setting a minimum retirement age.”
Brazil is currently facing a deficit of R$150 billion ($48 billion). Over the weekend, Moody’s said that the deficit will not affect the country’s credit rating as it is no longer investment grade, according to Forbes.
Tags: Brazil, Michel Temer, Pension