President Lula extracted a surprising concession from the military. Defense Minister José Múcio told journalists this Wednesday (20) that the Armed Forces will contribute to spending cuts – and “exactly as the minister [Fernando] Haddad asked.”
The terms of this contribution have not been officially disclosed, as the cost containment package remains in the oven. But it is known that it involves the military’s social protection system. In other words, issues relating to veterans and pensioners.
The head of Defense stated that the . He gave the statement shortly after commenting on the suspects of involvement in a plot to assassinate Lula, vice Geraldo Alckmin and minister Alexandre de Moraes, of the STF (regarding this case, Múcio stated that members of the Army and argued that, if guilty, those who “stain the name of the Armed Forces” are punished).
When it comes to the Lula government, cutting spending and military benefits, it is recommended not to expect much. There is always time and space for delays, twists, asterisks and fine print. And the fiscal impact of changes to the Armed Forces tends to be small; The effect sought by the government is more symbolic, indicating that the expected fiscal adjustment will not only affect the poorest.
In any case, the Defense’s declared adherence to the package prepared by Haddad is surprising due to its speed and apparent lack of resistance from the barracks.
During the government of Jair Bolsonaro, himself a retired soldier, it was with great effort that the Armed Forces agreed to change the rules of their social protection system – and they only did so when receiving in return the expansion of other benefits. The pension reform for civil servants and private sector workers was much tougher.
According to what was reported unofficially, the news that Múcio negotiated with Lula, Haddad and the commanders of the three Forces involve:
- setting a minimum age of 55 years for transferring military personnel to the reserve;
- a contribution of 3.5% of remuneration to the health fund; and
- the extinction of “fictitious death”, a situation in which family members receive a pension from a soldier expelled for a crime or serious infraction, as if he had died. The benefit will be replaced by a type of confinement aid.
Today there is no minimum age for military personnel to leave active duty and join the reserves. They only have to complete a minimum length of service, which was raised from 30 to 35 years in .
In the same reform, the discount on the remuneration of active and inactive employees – as pension contributions – was increased from 7.5% to 10.5%. Pensioners started to receive a discount on the benefit, also of 10.5%. Those who joined until 2000 maintained the right to add a 1.5% contribution to guarantee a lifetime benefit for unmarried daughters.
Despite the increase in discounts and length of service, the 2019 reform maintained the right to veterans and pensioners of the Armed Forces to full benefits – equivalent to the last pay received on active duty – and to parity, that is, an adjustment identical to that received by personnel in activity.
Parity and integrality still exist for older civil servants, but they no longer apply to those hired after 2003. CLT workers, INSS insured, do not have these rights.
The pension reform also implemented minimum ages of 62 for women and 65 for men, both in public service and in the INSS, well above the level that will possibly be created for military personnel. And individual contributions to Social Security, also readjusted in 2019, can reach 14% in the private sector and 16.79% in the highest salaries in the public sector.
The Armed Forces, in addition, received compensation for accepting the reform from five years ago. An example: the subsistence allowance, paid in a single installment when the soldier moves to the reserve, was doubled. As a result, veterans began to receive eight times the pay of the highest position in their hierarchical circle.
What the military says about its social protection system
The military has answers at the tip of their tongue for those who see privileges in their social protection system:
- military personnel do not retire: they are permanently available to the country and can be called up at any time;
- there is no FGTS;
- does not have the right to strike, unionize or join a political party;
- does not receive overtime, night shift pay or hazard pay;
- is obliged to change cities whenever ordered.
The actuarial assessment notebooks that the Armed Forces prepare every year usually contain a rationale to explain discrepancies in relation to civilian pensions.
The document attached to the 2025 Budget Guidelines Bill (PLDO), for example, says that the military’s social protection system “enables the readiness of the Armed Forces to fulfill their constitutional mission.” This means attracting and retaining talent, maintaining personnel with physical and mental vigor “compatible with the demands of military activity” and compensating for the “specific peculiarities (sacrifices) of a military career.”
“Because of these functions, almost all countries understand that military social protection must be distinct from social security”, argues the text.
Social Security breaches: INSS, civil servants and military personnel
In other countries it is also common for the Treasury to cover a large part or almost all of the expenses for military veterans and pensioners. , being in some cases more generous in Brazil and in others, less.
Still, the values involved draw attention. According to a report by the Federal Audit Court (TCU), the difference between contributions and benefits from the military system resulted in a deficit of almost R$50 billion last year. It is slightly less than that of the RPPS, the civil servants’ own regime, which has more than double the number of beneficiaries and recorded a negative balance of R$55 billion. In the INSS, the gap exceeded R$315 billion, but it serves a much larger audience.
TCU minister Walton Alencar, when presenting a separate vote in the judgment of the 2023 government accounts, pointed out that the per capita deficit was R$9,400 in the INSS, R$69,000 in the RPPS and R$159,000 in Armed Forces. “The military protection system is the one that imposes the greatest cost on society, per beneficiary and, therefore, must be the object of attention, study and debate”, said Alencar.
According to figures attached to PLDO 2025, today there are just over 313 thousand military veterans and pensioners. In the civil servants’ pension system, there are 796 thousand beneficiaries, including the Executive, Legislative, Judiciary and Public Ministry. The INSS, in turn, pays benefits to 34.2 million retirees and pensioners, according to September data.
Considering the estimated results for this year, based on projections from different official reports, the INSS will have a deficit of approximately R$8,000 per beneficiary. Under the civil servant regime, the loss will be around R$70,000 per retiree and pensioner. And, in the military system, R$161 thousand per beneficiary.
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