Temer: pension reform will bring equality and end privileges

                                                                                                                                                                                                              Alan Santos/PR

In a TV interview on Monday (29 January), President Michel Temer clarified a number of points about the Pension Reform bill, which is expected to be voted by National Congress in February. "It is a crucial [reform]; it has to be done," he stressed. Check out the highlights of the interview:

1. Equal rights

"There won't be privileges, there will be equality," the president assured. This is because the bill ends differences between the retirement systems for public servants and private sector workers, who will both be restricted to the same pension ceiling. Temer emphasised that "the principle of equality reaffirms what our Constitution says: all are equal before the law".

He also explained that recipients of the Continuous Cash Benefit (an individual non-transferable stipend paid to poor elderly and persons with benefits) and retired rural workers will not be affected by the new rules. Pensioners who have already retired will also see no changes: "the acquired rights of those who have completed their time of contribution will not change," he highlighted.

2. Without reforms, Brazil will go broke

Temer clarified that the approval of pension reform is essential to ensure the State has the funds to pay retirement benefits in the future. Brazil's pension deficit has already reached R$ 268 billion. "When I think about reforming the pension system, we are thinking of preventing a more radical pension reform," said the president. If the rules are not changed, Brazil "goes broke," he added.

Temer recalled the recent cases of Portugal and Greece, where governments had to cut pensions and public servant salaries because of budget deficits. "If we don't reform the pension system now, there will be no money left," he warned.

3. Improving the economy

Approval of the reform should further improve the country's economic indicators, Temer explained. "For six months now, the economy has already been reacting this way," he said, referring to inflation, now subdued at 2.95%, and the Selic benchmark rate, now down to 7%. For him, "when we reform the pension system, the economy will take an even bigger leap".

4. Popular support

The reform is expected to be voted in the Chamber of Deputies plenary next month. Temer stressed that intense dialogue between the Executive and Legislative branches, that society support is paramount in appreciation of the matter, and that votes for the reform "are growing".

Therefore, he argued that it is essential for the population to express their support of the reform to members of Congress: "The Deputies will resonate, and make the voices of people echo in Congress."