RIO DE JANEIRO, BRAZIL – Presidential Chief of Staff Onyx Lorenzoni said yesterday, August 10th, that the government will be submitting to the Chamber of Deputies “in the coming weeks” a proposal for an amendment to the Constitution (PEC), establishing a capitalization model in the social welfare system.
Capitalization is a system in which every worker holds a personal social welfare account. Onyx said the team of the Minister of Economy, Paulo Guedes, is finalizing the proposal.
“There lies Brazil’s great future. Not only in regard to the social welfare issue but primarily as an instrument and tool to expand domestic savings and thus free Brazil from foreign capital,” said Onyx, before attending the ‘Marcha para Jesus’ event (“March for Jesus”), with the presence of President Jair Bolsonaro.
The minister further stated that he advocates employer contribution in capitalization, but noted that the economic team is still working on the proposal. “I defend that we optionally have either a capitalization fund or individual savings for retirement, for instance,” he added. “This is the Golden Law for Brazil, in my view, the capitalization PEC”.
The capitalization system was part of the social welfare reform bill submitted by the federal government in February, but the PEC’s rapporteur in the Chamber’s Special Committee, Deputy Samuel Moreira (PMDB-SP), removed this item from his opinion.