The segment is also the one with the most retirement benefits, according to a TCU report

Targeted by the fiscal reforms under consideration by the government, Brazil’s military pension system (SPSMFA) recorded a deficit of R$49.73 billion last year, placing it as less sustainable than the General Social Security System (RGPS) and generating a per capita deficit 17 times higher.

This data appears in a separate report by Walton Alencar of the Federal Court of Accounts (TCU), presented during the review of the government’s 2023 accounts last June. Mr. Alencar also highlighted benefits exclusive to the military, such as pensions for unmarried daughters and “fictitious death” pensions, which are unavailable to civilian employees or private sector workers.

The document notes that in 2023, RGPS revenues covered 65% of its expenditures, while the federal civil servants’ pension system (RPPS) had a coverage rate of 41.9%. In contrast, contributions to the military pension system covered only 15.47% of its expenses.

“The December 2023 Budget Execution Summary Report shows that the military protection system imposes the highest per-beneficiary cost on society and, therefore, warrants focused study and debate,” said Mr. Alencar.

The report compares the per capita deficits of each system, revealing a significant disparity: R$9,400 per beneficiary in the RGPS, R$69,000 in the RPPS, and R$159,000 in the SPSMFA. According to the report, this discrepancy raises questions of equity and accountability in the public benefits and contributions within each system.

In 2023, pension system deficits across RGPS, RPPS, SPSMFA, and benefits for police and firefighters in the Federal District totaled R$428 billion, worsening by 9.1% from the previous year and nearing the record deficit of R$442 billion in 2020.

The RGPS alone had a R$315.72 billion deficit, while RPPS recorded R$54.78 billion, SPSMFA reached R$49.73 billion, and police and firefighter benefits in the Federal District contributed R$8.03 billion. Most of the increase was concentrated in the RGPS, whose expenses rose by 7.5%.

Reflecting on pension reforms enacted since the 1988 Constitution, Mr. Alencar noted that the Armed Forces have “preserved the greatest advantages,” citing the lifetime pension for unmarried daughters of military personnel as an emblematic example. This benefit, discontinued for military personnel entering after 2001, is projected to cost the government until 2060.

Military personnel pay lower pension rates than civil servants (who contribute 10.5%) and are guaranteed full income upon retirement, sometimes with promotion benefits, as well as allowances for reserve duty.

According to Mr. Alencar, the TCU examines the legal grounds for “fictitious death” pensions, which allow dependents of military personnel dismissed for criminal or serious disciplinary offenses to receive pensions. “This effectively rewards misconduct, unlike the dismissal of civil employees who lose access to social security benefits,” he added.

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