No menu items!

Brazil’s Senate Uses Costly Health Pensions As Revenge On Lula

Brazil’s Senate has pushed through an expensive early-retirement bill that looks less like social policy and more like payback. The vote came days after President Lula chose his loyal attorney general, Jorge Messias, for a powerful Supreme Court seat.

Many senators wanted one of their own in the job. Instead of arguing in public, they answered with the budget. On paper, the bill helps community health agents and endemic-disease agents.

These workers go door to door in poor neighborhoods, visit pregnant women and the elderly, and help contain dengue and other outbreaks. The proposal lets men in these posts retire at 52 and women at 50, with at least 20 years in the job.

In many cases, they will earn pensions close to their last salary and keep the same raises as active staff. For the Treasury, this is a heavy new burden. Government estimates point to roughly 40 billion reais ($7.5 billion) in extra costs over ten years.

Senate Pushes Controversial Pension Benefit Despite Fiscal Warnings

Brazil only recently approved a strict pension reform and new spending rules to control debt. The Finance Ministry openly warned that this project is fiscally very bad.

Brazil’s Senate Uses Costly Health Pensions As Revenge On Lula. (Photo Internet reproduction)

Senators heard the warning and passed it anyway, with 57 votes in favor, two abstentions and not a single vote against.

For expats and foreign readers, the message is clear. Brazil’s Senate is willing to blow a large hole in the public accounts to show it cannot be pushed around by the president.

The bill now moves to the lower house, where many deputies are also sensitive to pressure from organized public-sector groups. This does not mean health workers do not deserve better treatment.

Their work is hard and often underpaid. But the way this benefit was built, and the moment it was voted, suggest something else. It looks like a political class using public money as a weapon in an internal power game.

Check out our other content

×
You have free article(s) remaining. Subscribe for unlimited access.

Rotate for Best Experience

This report is optimized for landscape viewing. Rotate your phone for the full experience.