Brazil’s Congress will most likely approve a pension reform proposal by the end of November, Finance Minister Henrique Meirelles predicted in a speech Tuesday. The government proposal would set new age and contribution standards for retirement in an effort to tighten up rules and reduce costs. The government has signaled it may be willing to water down some aspects of the proposal in order to assure passage. Meirelles said, “Brazil has a young population, but pension spending is already higher than Japan or Europe. Clearly, this cannot be sustained.” Meirelles said passage this year was essential. “Passage of the bill in 2018 is highly unlikely,” he said, noting that Brazil will have general and presidential elections next year. He said failure to pass the legislation would force the government to look elsewhere for spending cuts.
Link to Reuters news agency articleMore Testimonials