Deadline for server to switch to supplementary pension ends today

Federal civil servants who joined the public service before 2013 have until this Wednesday (30th) to migrate to supplementary social security with special conditions. Today ends the deadline for joining the Complementary Pension Funds of the Federal Public Servant (Funpresps) with advantageous calculations.

Special migration was authorized by Law 14,463, approved by the Senate in early October and sanctioned by the President of the Republic on the last 31st. 2019 pension reform.

As of Thursday (1st), it will no longer be possible to change regimes. Joining Funpresp will remain possible at any time, both for servers that migrated and for those that did not.

Benefits

During the proceedings in the National Congress, the parliamentarians changed the calculation of the Special Benefit (BE), compensation paid by the Union to the migrated server at the time of retirement. This benefit takes into account the time and amounts that the public servant contributed above the ceiling of the National Institute of Social Security (INSS) throughout the public service and the time left to retire.

According to the original text of the provisional measure, BE would refer to the simple arithmetic average of remuneration corresponding to 100% of the entire contribution period.

The new law allowed the calculation based on the average of 80% higher wages, discarding the lowest contributions, which may result in an increase in the benefit.

The National Congress also resumed the rule for calculating the Special Benefit for previous migrations, which considered a total time of 25, 30 or 35 years of contribution, depending on gender and professional category. The original provisional measure required 40 years for all civil servants. The law has greatly improved the advantages for those who migrate, especially women, teachers and police.

optional migration

Civil servants who took office before 2013 are enrolled in the Public Service Pension Regime, which pays pensions above the ceiling of the National Social Security Institute (INSS). With the Social Security reform, these civil servants pay progressive contribution rates for each salary range, which vary from 7.5% to 22%. Servants who earn more pay higher rates to fund retirement, aid and pensions for those who have passed into inactivity.

Those who entered the federal public service from 2013 onwards and therefore contribute to the complementary social security category have their contribution limited to the INSS ceiling (R$ 7,087.22). Thus, the highest rate does not exceed 14% for this portion of civil servants.

In order to receive above the INSS ceiling, the federal employee who took over from 2013 onwards needs to join one of the Funpresps: one for the Executive Branch, one for the Legislative Branch and another for the Judiciary and the Federal Public Ministry. In the supplementary pension, the server will receive proportionally to what he contributed. Those who pay more receive a larger supplement in retirement.

Migration to the supplementary regime for public servants before 2013 is optional. However, the Ministry of Economy recommends switching to supplementary retirement to avoid the risk that the special pension scheme for federal employees will collapse in the coming decades. In the 12 months ended in September, the special regime accumulated a deficit of R$ 105.8 billion, according to the National Treasury.

private nature

The law also changed the legal nature of supplementary pension foundations. They remain private law and non-profit, and are now considered private rather than public in nature.

With the change, they start to follow the rules of government-controlled companies, instead of the Bidding and Contracts Law. The measure makes room for managers to earn more than the ceiling of minister of the Federal Supreme Court (R$ 39,293.32).

According to the Ministry of Economy, the change allowed the servers’ supplementary pension funds to gain autonomy and become more competitive, professional and technical.

The Funpresps will continue to be supervised by the Federal Court of Accounts, by the Federal Comptroller General and by the National Supplementary Pension Superintendence (Previc). They will also remain monitored by the Audit Committee, by internal and external audits and by the 186 sponsoring bodies (where federal employees work).

Translated to english by RJ983

From Brazil, by EBC News