The Brazilian Senate on Tuesday night approved the basic text of a sweeping pension reform bill by a vote of 56-19. The bill has already passed the Chamber of Deputies. The bill would reduce government expenditure on pensions by an estimated R$877 billion over ten years. The government-sponsored bill is considered crucial to long-term fiscal stability. The Senate must still vote on a series of amendments to the bill. Those votes are likely later this week. The bill comes in the form of a constitutional amendment. As such, it must be passed by the Senate in a second-round vote, currently set for October 10. Once the pension overhaul is adopted, another sweeping reform, this time of the tax system, will be taken up by Congress. Different versions of a tax reform bill are already inching their way through congressional committees.
Link to government news agency release.More Testimonials