What is the Proportional Retirement Benefit, the mechanism that could replace the moratorium for retirees | Debate on the Bases Law begins in Deputies

This Monday, April 29, the debate of the Base Law in the House of Deputies. Among its more than 200 articles, the project includes a labour reforma tax packagethe privatization of public companies and also the elimination of the pension moratorium.

In the norm that begins to be discussed today in the Lower House, a process that is estimated to last until Wednesday, it seeks to repeal law 27,705 who arranged the pension moratorium that allows people who They do not have the 30 years of mandatory contributions to the Anses. Instead of this moratorium, the Government seeks to establish the Proportional Retirement Benefit (PRP). How does it work? How much will those who access PRP charge?

Proportional Retirement Benefit: what it is and how it works

PRP consists of a monthly salary equivalent to 80% of the Universal Benefit for the Elderly (PUAM), which It represents 80% of the minimum retirement income.

To access this benefit that the Government intends to impose to replace the retirement moratorium, people must comply with the following requirements:

• Have 65 years of age or older.
• Accredit a minimum of 10 years of contributions forecast
• Not having voluntarily resigned from a job in the previous 36 months upon reaching retirement age.

What does the current pension moratorium establish?

The law 27,705, approved in February 2023, established for a period of two years, extendable for another two, the pension moratorium. The measure allowed 460,000 people to retire last year who did not have the years of contributions necessary to do so.

This standard established a payment plan with two components:

1. Those who are of retirement age (60 years for women and 65 years for men), but they do not have sufficient contributions, they can cancel the pension debt in monthly installments. Up to 120 installments can be paid for years prior to 2008. Each month owed is equivalent to 29 percent of the minimum taxable remuneration.
2. Those who are 10 years away, or less, from reaching retirement agebut They have pension debt and they will not be able to have the necessary contributions to retire, are allowed to cancel past periods of missing contributionswhich cannot be after March 2012. Each period to be canceled is also equivalent to 29 percent of the minimum taxable remuneration.

If Congress approves the Bases Law, those who do not have the necessary years of contributions will only be able to access the PUAM at age 65. and They will charge only 80 percent of the minimum salaryregardless of the number of years they have contributed and as long as they can demonstrate that they are in a situation of social vulnerability.

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