Lula: Only an elected government can change retirement benefits.

247 - Former President Luiz Inácio Lula da Silva criticized the pension reform proposal from Michel Temer's government, which is currently being debated in the National Congress. 

In a video released by the PT's Facebook page, Lula argues that with economic growth and more people contributing, the government can guarantee the resources to pay retirees and pensioners. 

"Now, they want to change the rules of the game, placing the blame for the crisis on the worker. And at a time when unemployment has left millions of people unable to contribute," says Lula. 

For the former president, who leads all polls regarding voter preference for the presidential elections, the issue is too important to be discussed without a broad debate in society.

"Only a government elected by the people will have the legitimacy to have this debate and guarantee the sacred right to retirement for the Brazilian people," said Lula.

Check out the video above.

Read the summary from Agência Brasil about the main points of the pension reform proposed by Michel Temer:

Who will be affected by the new rules

All active workers will be included in the new system. Those under 50 years old (men) or 45 years old (women) will have to comply with the new rules in full. Those 50 years old or older will be subject to a different rule, with additional time to claim the benefit. Retirees and those who meet the requirements to claim the benefit before the reform is approved will not be affected because they already have acquired rights.

Minimum age

The government intends to set a minimum retirement age of 65 and increase the minimum contribution period from 15 to 25 years. Currently, there is no minimum retirement age. Under the existing rules, it is possible to retire after 30 years of contributions for women and 35 years for men. To receive the full benefit, it is necessary to reach the 85 formula (women) and 95 formula (men), which is the sum of age and contribution time.

The so-called special insured persons, which includes family farmersThey would then be subject to the same minimum age rule as urban insured individuals (65 years). Currently, they can retire at a reduced age. Also, professorsThose who previously could retire with reduced time by counting their time in the classroom will now follow the same rules established for other workers. The only exception would be for... workers with disabilitiesSpecial treatment will continue to exist, but the difference compared to others cannot exceed 10 years in the age requirement and 5 years in the contribution time requirement.

transition rules

There will be a transitional rule for those nearing retirement. Men aged 50 or older and women aged 45 or older will be able to retire under different rules. The transitional rule only applies to the retirement age; the new proposed rule will apply to the calculation of benefits.

Workers in this situation will have to fulfill an additional contribution period, a kind of "toll," equivalent to 50% of the time that would be missing to reach the required contribution time. For example, if a worker was one year away from retirement, they will now be one and a half years away (12 months + 50% = 18 months).

This toll also applies to teachers and special insured individuals (rural workers) who are 50 years of age or older, if male, and 45 years of age or older, if female.

Contribution time and retirement benefit amount

Under the proposed rules, a worker must reach the minimum age of 65 and have at least 25 years of contributions to be eligible for retirement. In this case, they will receive 76% of the retirement benefit – which corresponds to 51% of the average of their contribution wages, plus one percentage point of this average for each year of contribution. For example: a worker who is 65 years old and has 25 years of contributions will receive a retirement benefit equal to 76% (51 + 25) of their contribution wage.

For each additional year of contribution, the worker will be entitled to one percentage point. Therefore, to receive full retirement benefits (100% of the value), the worker will need to contribute for 49 years, the sum of the 25 mandatory years plus 24 additional years.

Rural workers will also be required to contribute a percentage that will likely be tied to the minimum wage. For this levy to be implemented, a bill will need to be passed.

public servants

Public servants are part of a separate system called the Public Servants' Pension Scheme (RPPS). However, with the proposed constitutional amendment, they will be subject to the same rules as workers in the General Social Security Scheme (RGPS): minimum retirement age, minimum contribution period, rules for calculating retirement benefits due to permanent disability, as well as provisions for special retirement benefits.

With the reform, there will be a single type of voluntary retirement, requiring the following criteria: 65 years of age, 25 years of contributions, 10 years in public service, and 5 years in the current position, for both men and women. As with the General Social Security System (RGPS), the transition for current insured individuals will apply to civil servants aged 50 or older (men) or 45 or older (women). Voluntary retirements for civil servants who follow the transition rule and entered their positions before December 31, 2003, will be granted with full benefits and parity.

Military personnel, police officers, and firefighters

Civil and federal police officers will be included in the reform and will be subject to the criteria of a minimum age of 65 years plus 25 years of contributions. On the other hand, members of the Armed Forces will follow a specific regime, which will be sent separately in a bill to the National Congress. In the case of military police and firefighters, each of the 26 states and the Federal District will have to make changes to their local legislation to adapt the pension systems for these careers.

Pension for death

With the proposed constitutional amendment, the value of survivor's pensions will be based on a quota system, with a differentiated initial value depending on the number of dependents of the worker. The INSS (Brazilian National Social Security Institute) will pay 100% of the benefit only to pensioners who have five children. Furthermore, the benefit amount will no longer be linked to the minimum wage. The duration of the survivor's pension will remain the same.

According to Social Security, the benefit will be equivalent to 50% of the retirement benefit the insured person would be entitled to, plus 10% for each dependent. For example: if the retired worker leaves a wife and a child as dependents upon death, these two dependents will together receive a total of 70% of what the beneficiary received in retirement benefits (50% plus two individual shares of 10%).

The rules also apply to civil servants, and in this case, the lifetime survivor's pension for all dependents ends. The duration of the benefit for the spouse becomes variable, according to their age at the time of the civil servant's death: it will only be for life if the widow/widower is 44 years of age or older.

When it comes into force

The changes will not take effect immediately because they still depend on approval from the National Congress. The proposed constitutional amendment will be analyzed by the Constitution and Justice Committee (CCJ) of the Chamber of Deputies to verify its constitutionality. Following this, if approved, a special committee will be created for further analysis. This committee will then prepare a report and send it to the full House for consideration.

In the Chamber of Deputies, the proposed constitutional amendment (PEC) must be approved in two rounds by three-fifths of the deputies. In the Senate, it must again pass through the Senate's Constitution, Justice and Citizenship Committee (CCJ) and two rounds in the plenary, also with the approval of three-fifths of the senators. If the Senate approves the text as received from the Chamber, the amendment is promulgated and becomes law. If the text is altered, it must be sent back to the Chamber for analysis of the changes made by the senators.