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Portugal:

Legislative changes

A number of legislative changes occurred towards the end of 1999 that have a bearing on pension arrangements in Portugal.

• Payment of voluntary employee contributions to social security On 1 January 2000, a measure was introduced which allows employees to make voluntary contributions to social security to enhance benefits if they elect to receive a social security pension prior to age 65.
• Minimum benefits from social security Since the change in legislation to allow early retirement from age 55, the government has issued minimum benefit guidance. The law on indexation of salaries has been extended until 2001.
• Additional employer contributions When the actuarial assumptions are changed and there is an actuarial loss, the contribution can be recognised over a maximum of a five-year period for tax purposes.
• Social security financing A government body has been set up to manage social security funds.
• Workers' compensation legislation This legislation has been extensively revised and the scope of cover expanded. The revised arrangement will result in additional costs to all employers.