Proposed savings of R$12 million in 2025 are seen as insufficient given the deficit of R$50 billion
The CLP (Public Leadership Center) assessed the proposal to reform the military pensions of the Ministries of Finance and Defense as insufficient. The analysis, released on Monday (25.Nov.2024), criticizes measures such as increasing the minimum retirement age and the additional contribution of 3.5% on salaries. For the CLP, these actions do not solve the structural problems of the military pension system. Let’s go (PDF – 308 kB).
The CLP’s technical note points out that the change in the retirement age would generate savings of just R$12 million in 2025. This amount was considered insignificant by the analysis, given the deficit of R$50 billion in military pensions. The proposal also suggests changes to pension rules and an additional contribution to salaries.
The CLP recommends increasing the minimum age for transfer to the paid reserve to 60 years old. It also suggests eliminating military pensions in full and calculating benefits based on average earnings.
The organization also proposes to eliminate non-existent pensions in the General Social Security Regime. The idea is to promote greater equity between the country’s social security systems.
The technical note details that, when analyzing military personnel who could retire before the age of 50, the savings would be R$12 million in 2025 and R$25 million in 2030. These values consider a tax replacement rate of 50%. In other words, the cost of new military personnel would be half the salary of retired personnel.
