March 2019

Brazil economy chief skips pensions hearing, parties demand changes

Brazil's pension reform process hit two speed bumps on Tuesday, as Economy Minister Paulo Guedes did not attend a first congressional hearing on the proposals and a bloc of 11 political parties demanded the removal of changes affecting retirement benefits for rural and disabled workers. Guedes's appearance at the 'CCJ' committee was seen as a highlight of pensions reform negotiations this week, amid growing concern the government is disengaged from the process. The government's chief congressional whip Joice...

February 2019

Brazil. Pension Reform Will Make Young People Take Jobs With Less Benefits

Bill encourages hiring retirees and extends the retirement age, making older people stay in the workforce Bolsonaro's proposed Social Security reform bill will keep middle-aged professionals who could otherwise retire in the workforce. It is also bringing a new idea: incentives for companies to hire retirees. However, specialists say that the proposal will have an unexpected side effect: it will force young people - especially the ones without skills - to take jobs without law-mandated benefits. ...

Pension Funds with Automatic Enrollment Schemes: Lessons for Emerging Economies

By Heinz P. Rudolph (The World Bank) Since the introduction of the KiwiSaver scheme in New Zealand in 2006, several countries have implemented, or are in the process of implementing, voluntary funded pension systems with automatic enrollment features. Since most of the literature has focused on countries with the common law tradition, including the United Kingdom and the United States, this note analyzes cases of countries with the civil code tradition, including Turkey, Poland, the Russian Federation, Chile, Brazil, and...

Brazil’s pension reform to save $270bn in 10 years

Read alsoLatam FX firms, Brazilian stocks mount recoveryLatam FX weak, Brazil’s real drops ahead of pension reform plans Stocks in Brazil steadied on Wednesday as market focus remained on the government's proposal for pension reform, which is aimed at helping curb the country's mounting fiscal deficit. Latin American currencies were mixed against a slightly softer dollar with investors waiting for the U.S. Federal Reserve's January policymaking minutes expected later in the day. ...

Latam FX firms, Brazilian stocks mount recovery

A Latin American equities benchmark rose on Tuesday, bolstered by a rebound in Brazilian shares, while Latin American currencies broadly advanced against a soft dollar. Global currency traders wound back safe-haven dollar holdings on hopes that the fresh round of U.S.-China talks would aid strained trade ties between the world's two biggest economies, setting the stage for Latin American currencies to gain. Brazilian equities climbed back above the 97,000 mark....

Latam FX weak, Brazil’s real drops ahead of pension reform plans

Latin American currencies weakened against the U.S. dollar on Monday, with Brazil's real underperforming its peers ahead of anticipated pension reforms to be presented to congress later this week. The real slipped 0.8 percent, underperforming its peers, as President Jair Bolsonaro is expected to face opposition from congress, possibly delaying the passage of reforms seen as essential for shoring up the economy. "Pension reforms are considered crucial by the market with...

Brazil stocks fall over pension reform anxiety

Brazilian stocks fell on Thursday as investors were cautious on pension reform progress and markets awaited further hints from tariff talks between the United States and China. A weaker dollar did little to help Latin American currencies, which fell. Stocks on the Bovespa fell 0.7 percent led by declines in financials as investors eyed a meeting between President Jair Bolsonaro and Economy Minister Paulo Guedes where they are expected to...

January 2019

Brazil’s real leads Latam FX gains on pension reform hopes

Brazil's real firmed against the dollar on Tuesday, with investors anticipating tougher government proposals on pension reform, while the losses among some Latin American currencies reversed after comments by U.S. President Donald Trump on trade. Financial markets are hoping that new Brazilian President Jair Bolsonaro's government will take steps to make deeper cuts to the country's fiscal deficit than envisaged under the previous government. Bolsonaro, who was elected in October and has been an outspoken proponent of shrinking the deficit, is...

December 2018

Brazil. Bolsonaro begins political contacts to address pensions scheme with piecemeal reforms

Right-wing President-elect Jair Bolsonaro said on Tuesday he plans to tackle the overhaul of Brazil's fiscally burdensome pension system with piecemeal reforms that can pass Congress, starting with an increase in the minimum age of retirement. He said reforms should start with the public social security system and advance gradually to make sure they pass Congress. ”The idea is to start with the (minimum) age, attack the privileges and take it forward,“ Bolsonaro said at a news conference, warning that...

December 2017

Brazil’s Temer urges pension reform in Christmas message

Brazilian President Michel Temer took advantage of his Christmas message broadcast Sunday night to once again urge congress to approve his controversial pension reform plan. Referencing the recent approval of pension reform in neighboring Argentina, he insisted the issue is not “ideological or partisan” — but rather a “question of the future of the country” to “guarantee pensioners of today and tomorrow their pensions.” The centerpiece policy of scaling back pensions has been met with dismay by most Brazilians —...