Reform for the military is expected to generate savings of only 1% of the projected R$ 1 trillion.

247 - Even though they are primarily responsible for the pension deficit, the military, the target of a separate reform project and presented this Wednesday, the 20th, by President Jair Bolsonaro In the Chamber of Deputies, the proposals are expected to generate net savings of only 1% of the R$ 1 trillion projected over ten years by the economic team. The savings to be generated by the proposal amount to R$ 10,45 billion in the same period.

The amount represents the difference between the expected savings (R$ 97,3 billion) and the cost of restructuring careers (R$ 86,65 billion). The proposal suggests increasing the length of active service and the contribution rate.

The difference in the economic benefits proposed by the government between the two reforms undermines the discourse of combating privileges propagated by Bolsonaro and his team.

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Military personnel will contribute 10,5% to a special pension plan.

By Marcelo Brandão and Wellton Máximo - The military will start contributing more to the special pension scheme and working longer to be entitled to retirement and pensions. According to the government proposal delivered today (20) to Congress, there will be a progressive increase in the contribution rate for military pensions. Currently, this rate is at 7,5%. The proposal is that each year an increase of one percentage point will be applied until 2022, when this rate should reach 10,50%, a value to be applied from that year onwards.

Another change will be the universalization of the contribution rate. Currently, pensioners, students in training schools, as well as corporals and soldiers during mandatory military service do not pay contributions. With the new rule, all these categories will pay the same 10,5% starting in 2022, just like active and retired personnel.

The new rule provides for a five-year increase in service time, from 30 to 35 years, for both men and women. The minimum retirement age varies according to the military rank. The higher the rank, the higher the minimum age. This variation already exists in the current rule, and in the government's proposal, all ages are increased. In the case of an Army General, the highest rank, the minimum age would increase to 70 years.

The government presented the minimum age model only for Army ranks. The ages increase by five to six years for most ranks. In the case of warrant officer and major, however, the minimum age would increase by nine years.

Transition

Military personnel who have already completed 30 years of active service on the date the new law comes into effect will have the right to transfer to the paid reserve guaranteed. Active duty military personnel who do not yet meet the requirements for retirement must serve the remaining time to complete 30 years of service plus a 17% surcharge on the remaining time. Thus, a military member with ten years of service will have to work 3,4 years beyond the 30 years. Those with 15 years in the Armed Forces will have to work 2,5 years more, totaling 32,5 years. Those with 20 years will need to work 1,7 years more, totaling 31,7 years.

In the pension reform proposal submitted last month, private sector workers who are two years away from the minimum service time required for retirement will have to pay a 50% surcharge on the remaining time. Therefore, a woman with 29 years of service will have to work six months beyond the 30 years required.

The bill that restructures the career and pension system for the military is being presented by the Special Secretary for Social Security and Labor, Rogério Marinho; the Deputy Special Secretary of the Special Secretariat for Social Security and Labor, Bruno Bianco; the Secretary of Social Security, Leonardo Rolim; and representatives from the Ministry of Defense and the Armed Forces.