Brazil
Government rules on
early retirement age
for private retirement
plans
On 10 January 2001, the private
pensions regulatory body under the
Ministry of Social Security issued a
ruling on the minimum retirement age
under a private plan for 'integral
retirement' (ie retirement under a
private plan concurrent with and
contingent upon social security long
service retirement, subject to a
minimum age). The social security
long service pension is payable upon
completion of 35/30 (m/f) years of
payroll contributions irrespective of
age, with a reduced long service
pension available after 30/25 years
(m/f).
For defined contribution plans the
'integral retirement' minimum age is
to be raised gradually with effect from
2001 from the current minimum of 55
to reach 65 by the year 2010. For
defined benefit plans the new rule will
be first fully effective in the year
2020.
A ruling is expected in March that
will allow companies to grant early
retirement up to 10 years prior to
normal retirement age. Currently the
earliest retirement date is five years
prior to normal retirement. This would
facilitate the design and increase the
utility of early retirement incentives
and early retirement windows.
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Multinational is drawn from the News and Issues section of the Watson Wyatt website.
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