Brazilian President Michel Temer will water down a sweeping pension reform bill and then push for congressional passage by the end of this year, according to a report Tuesday by the Folha news agency. The reform is controversial. It will mean Brazilians will have to work longer and harder before they retire. There will be more restrictions on who can use the system and how much the system will pay out to retirees. The administration says the reform is needed to stem out-of-control government spending that will eventually leave the country bankrupt. Because the reform is potentially unpopular, Congress is unlikely to consider it in 2018, an election year, according to political risk analysts. The administration, therefore, is anxious to pass it by the end of 2017. According to the report, the government will abandon many of the restrictions and limitations imposed by the original bill, instead presenting a watered-down version that will produce about 75% of the savings originally anticipated. The original bill projected savings of R$600 billion over ten years.
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