Raymond Colitt – Bloomberg, 8/14/2012
Brazilian President Dilma Rousseff plans to set a minimum retirement age for private sector employees to limit its future pensions deficit, said a government official with knowledge of her decision.
Rousseff will set the age at 65 years for men and 60 years for women. The rule would apply to future, not current, contributors to the government’s social security institute, or INSS, said the official requesting not to be named because the information was confidential. Currently, workers can retire once they contribute a minimum of 35 years for a full pension or 15 years for a partial pension, in the case of men.
Brazil’s pension fund for private sector employees had a deficit of 37.5 billion reais ($18.5 billion) in the 12 months through June, according to the INSS website. Part of the deficit is due to benefits to rural workers who contribute little or nothing to the fund.