Arnaldo Falcao and Mario Sergio Lima – Bloomberg Business, 7/08/2015
Brazil’s Congress approved legislation that raises government expenditures on retirement benefits, setting up a showdown with President Dilma Rousseff’s administration that opposes spending increases.
Senators on Wednesday voted in favor of the proposal that lifts retirement payouts every year by the same formula used to calculate minimum-wage hikes. The lower house last month introduced the measure as an amendment to a bill that increases the minimum wage. The minimum-wage bill and measure on pension payments now go to Rousseff, who is expected to issue a veto.
That would be her second veto this year of a bill that increases government expenditures. Last month she vetoed legislation that allowed Brazilians to receive a higher pension at a younger age, replacing it with stricter requirements for collecting retirement benefits.