Brazilian President Jair Bolsonaro will have a “profound, unified” pension reform proposal on his desk next week, a top aide said Wednesday in a radio interview. Presidential Chief-of-Staff Onyx Lorenzoni said the plan would set in motion profound changes in the nation’s pension system, which currently suffers from deep and growing deficits. “We will propose a plan that means Brazilians won’t have to be talking about pension reform for the next 20 or 30 years.” He said the government plan will come in the form of a “unified” proposal rather than being split into different types of legislation. Such a proposal would likely imply the need for a constitutional amendment. He said the proposal will include creation of a so-called “capitalization” system for those entering the workforce. Such a system sets up individual retirement accounts rather than relying on current revenues to pay pensioners. Lorenzoni said he and Economy Minister Paulo Guedes will present the plan together to President Bolsonaro before Bolsonaro’s planned trip to Europe to participate in the January 22 World Economic Forum in Davos, Switzerland. He said the President will then decide on the final form of the proposal, which will be sent to Congress in February.
Link to government news agency release