Approves The General Bases Of The Social Security System

Original Language Title: Aprova as bases gerais do sistema de segurança social

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: http://app.parlamento.pt/webutils/docs/doc.pdf?path=6148523063446f764c3246795a5868774d546f334e7a67774c336470626d6c7561574e7059585270646d467a4c316776644756346447397a4c334277624445774d5331594c6d527659773d3d&fich=ppl101-X.doc&Inline=false

1 PROPOSAL of law No. 101/X explanatory memorandum 1-the XVII constitutional Government, considering the weakening of social protection policies and the financial deterioration of the social security system, verified in the three years prior to his inauguration, outlined in their programme, as a priority objective of action in this field, the launch of a third generation of social policies based on the one hand, ensuring the economic, social and financial sustainability of the social security system and, on the other, the priority given to the fight against poverty. In order to preserve the long-term sustainability of the social security system, began immediately the convergence of the social protection of employees and agents of the State in relation to the general social security scheme, in particular as regards the age of retirement, at the same time repealed various special schemes of early access to pension, generating situations of serious transgressions of socially and financially unsustainable. To strengthen the mechanisms for fighting poverty and promoting equal opportunities, advanced also by creating a new extraordinary performance, the supplement for the elderly, targeting a segment of the population still among us, particularly weakened economically and socially, as shot by more severe and persistent levels of poverty.

2-it was possible to adopt all these measures and by the Framework Act No. 32/2002, of 20 December. However, taking into account the need to preserve and strengthen the financial and social sustainability of the system, in the face of the new demographic order and economic constraints facing the Portuguese society, there is an urgent need to introduce a set of structural changes that, firstly, to contribute to minimizing the impact of aging on the financial equilibrium of social security. Started in the mid 90-with the establishment, under Act No. 17/2000 of 8 August, new principles of funding and a new formula for calculating retirement pensions – 2, the process of social security reform was inadvertently interrupted from April 2002. Matters now resume it at the point set, and, to this end, a political attitude of realism, common sense and responsibility. So why this attitude of seriousness-oriented policy, the Government introduced, soon with the proposed State budget for 2006, a report containing concrete and technically justified a re-evaluation not only of the present and future situation of the system, but also of the foreseeable impact resulting from the adoption of new measures for the reform of social protection. Now give the proper legislative framework the measures which, by their nature and involves a structural change in the philosophical conception of the Social security system, are calling for the adoption of a new framework law, following the important Social security reform agreement signed recently in Committee of Permanent Social dialogue.

3-the proposal that now presents itself translates, in fact, a cut before the solutions contained in the still prevailing Act No. 32/2002, of 20 December, both in terms of generic system design (structure and relative size of each of its subsystems and schemes), both in terms of principles informers, and contrasts her a vision that is considered more progressive in the way of conceiving social security in view of the constraints that affect today. This proposal aims to break with the option contained in Act No. 32/2002, of 20 December, which would put into question the principle of the primacy of the public administration system, with consequences certainly damaging social and even economic. In addition, if not establishing that substantive and procedural law limits tight enough, you acautelassem the costs of transition from the current model for the proposed there, opened the door to achieving complementarity untimely private, not enough respect for the principle of solidarity and endangering the immediate balance of the system, and then also its future sustainability.

4-the proposal by the Government establishes important changes, of course, about the architecture of the system. This appears structured according to three levels to be articulated and working in an integrated manner, guaranteeing to all citizens the access to social protection. So, in the first 3 place, the social protection system of citizenship which is, in turn, divided into the subsystems of social action, solidarity and family protection. Secondly, the insurance system and, third, the complementary system, constituted, in turn, by the public and by the supplementary collective and individual initiative. The proposal accommodates a universalist vision system, emphasizing, in systematic terms and background (Chapter I), the social protection system of citizenship (first level), then also including the family protection now, and so ending – how logical and natural-all the protection of citizenship. The point here, in order to the gross weight of social justice and the affirmation of a greater penchant is redistributive combine in a balanced way, the principle of universality with the principles of selectivity (resource condition) and of positive differentiation on the basis of income and household size (the modulation and flexibility of benefits). In addition, retrieves the solution – already reflected in law No. 17/2000 of 8 August-for inclusion in this system, social action. This is, indeed, a social protection characterised by its objectives to combat poverty, to promote inclusion and guarantee equal opportunities, favoring basic levels of life with dignity, with her concerned, above all, the idea of citizens ' protection. The second level is equivalent to the insurance system (Chapter III), marked variously by principle of contributividade, yet embrace the principle of solidarity (employment-based) and even positive differentiation (immediately, in the replacement rates of pensions). There was also the concern of reference and explanation to the main operating concepts of these summary system, such as "contributory obligation", "obligations of taxpayers" and "record of remuneration for equivalence".

5-But, above all, the Chapter in question, along with the new provisions common to this and to the system of Social Protection of citizenship (Chapter IV), establishes a set of important and fundamental reform measures of the social security system. So, firstly, the allusion to the unofficial supply taxpayers ' obligations which will allow social security services, in the event of non-fulfilment of their reporting obligations, replace them on their own initiative, in order to avoid gaps 4 contributory that can jeopardize the timely collection of recipes. Secondly, the amendment to article on the deep determination of the amounts of the contributions by deleting-if the forecast of two contributory ceilings provided for in Act No. 32/2002, of 20 December, but keeping an allusion to the possibility of creation of a contributory or of a higher ceiling reduction of contribution rate. The introduction of these measures is now surrounded, however, additional substantive and procedural safeguards, in particular the need to respect the principle of solidarity and the preservation of the balance and sustainability of the system. Furthermore, the adequacy of the contributory effort, justified by changes in the economic, social and demographic conditions, in particular by sharing techniques and conjugation of the capitalization after in the complementary system (maxime public with the new regime of capitalization). Thirdly, the consecration of a new rule regarding birth promotion, providing for both the introduction of new subsidy or mechanisms of modulation of benefits. Fourthly, the introduction, in the determination of the amounts of pensions, the sustainability factor, related to the evolution of life expectancy and that will be the fundamental element of the adequacy of the pension system to the changes of demographic or economic origin, thus contributing, unequivocally, for the safety of future sustainability of social security. In fifth place, but not least, the introduction of the Social support Index, which will replace the current national minimum wage indexes, as well as the establishment of new rules on updating the value of benefits. A final reference, still covered in the transitional provisions, the shortening of the period of transition from the old rules of calculating pensions for new, of Decree-Law No. 35/2002, 19 February, as considered essential not only in terms of social justice, but also from the point of view of financial stability, preserving, however, their gradual nature and the safeguarding of acquired rights.


6-Also with regard to supplement system configuration (the third level of protection, in chapter V), covering important news. It is, above all, of a different design: is now construed as true complementary system of public insurance system and not as your 5 trend replacer. Then, it is laid down, in accordance with a public scheme of innovative schemes, based on the creation of individual accounts fed through the contributory effort and additional optional that the beneficiary decides to do in the context of the payment of the respective contribution/contribution. The creation of this new regime will, from the point of view of the beneficiaries, an effect of improvement of their pension value, making up for the losses experienced because of the application of the sustainability factor. But, above all, the creation of this scheme is a decisive step in the deepening of individual responsibility of citizens in the management of their contributory career, without, however, calling into question the value of intergenerational solidarity that now if you want to even strengthen. Finally, the proposal does not stop to contemplate the essential regulatory framework in which could develop and operate private complementary initiatives, individual or collective, differing for ordinary legislation implementation.

7-Implementing the Social security reform agreement, this proposal sets the framework needed for the implementation of measures which will contribute, unequivocally, to solving the long-term financial problems of Social Security, without which this sign however of his vocation. Together in a balanced way the values of solidarity and freedom and individual responsibility, welcomes, with reservation of the principle of the primacy of public management, the sharing of tasks between the various sectors of society, with a view to achieving a widespread social protection and fair, you know be element of stimulation rather than obstacle to growth and continuous economic development in the country.

So: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following Bill: CHAPTER I objectives and principles 6 Article 1 subject-matter this law defines the General bases underpinning the system of social security, hereinafter referred to as the system, as well as private initiatives of similar purposes.

Article 2 right to social security 1-everyone is entitled to social security. 2-the right to social security is effected by the system and exercised under the terms established in the Constitution, applicable international instruments and in this law.

Article 3 non-waiver of the right to social security are null the clauses of the contract, collective or individual, you renounce to the rights conferred by this law.

Article 4 the system Objectives Are priority objectives of the social security system: a) Ensure the implementation of the right to social security; b) promote sustained improvement of the conditions and levels of social protection and the strengthening of its equity; and (c)) to promote the effectiveness of the system and the efficiency of its management.

Article 5 General principles Constitute general principles of the system the principle of universality, equality, solidarity, social equity, positive differentiation, subsidiarity, 7 social inclusion, intergenerational cohesion, the rule of public accountability, the complementarity of unity, decentralization, participation, effectiveness, protection of acquired rights and rights in training, legal and information assurance.

Article 6 principle of universality the principle of universality is the access of all people to social protection ensured by the system, as defined by law.

Article 7 principle of equality, the principle of equality is the non-discrimination of beneficiaries, in particular on the grounds of sex and nationality, without prejudice to this, the conditions of residence and of reciprocity.

Article 8 principle of solidarity 1-the principle of solidarity is the collective responsibility of people with each other in carrying out the purposes of the system and involves the State contest in its financing, pursuant to this law. 2-the principle of solidarity is: a) at the national level, through the transfer of resources among the citizens, in order to allow all effective equality of opportunity and to guarantee minimum social income for the most disadvantaged; (b)) in the plane, through redistributive mechanisms operating under the protection of professional base; and c) intergenerational plan, through the combination of methods of financing on a pay-as-you-go basis and futures.

8 article 9 principle of social equity the principle of social equity means equal treatment of equal situations and the different treatment of unequal situations.

Article 10 positive differentiation Principle the principle of positive differentiation is the flexibility and differentiation of income-benefits, contingencies and other social factors, in particular, family, social, labour and demographic.

Article 11 principle of subsidiarity the subsidiarity principle is based on the recognition of the essential role of people, families and other non-public institutions in pursuit of the objectives of social security, in particular in the development of social action.

Article 12 principle of social inclusion the principle of social integration is characterised by active, preventive and personalized nature of the actions undertaken within the system, with a view to eliminating the causes of marginalization and social exclusion and promote human dignity.

Article 13 principle of intergenerational cohesion the principle of intergenerational cohesion implies an adjusted balance and generational equity in meeting the responsibilities of the system.

9 article 14 the precedence principle of public accountability the principle of the primacy of public accountability is the duty of the State to create the necessary conditions to gross right to social security and to organize, coordinate and subsidize the social security system.

Article 15 complementarity the principle of complementarity is the articulation of the various forms of public, social welfare, cooperatives, mutual and private sectors, with the aim of improving the coverage of situations covered and promote the sharing of responsibilities at different levels of social protection.

Article 16 principle of unity the principle of unity assumes a hinged action of the different systems, subsystems and social security schemes towards harmonisation and complementarity.

Article 17 principle of decentralisation the principle of decentralization is the autonomy of the institutions, with a view to closer to the people, within the framework of the Organization and planning of the system and of national standards and guidelines, as well as the functions of supervision and supervision by public authorities.

Article 18 participation principle the principle of participation involves accountability of those involved in the definition, 10 system planning and management and on monitoring and evaluation of its functioning.

Article 19 principle of effectiveness the principle of effectiveness is the timely grant of benefits legally provided for, for adequate prevention and repair of eventualities and promoting decent conditions of life.

Article 20 principle of protection of acquired rights and rights in training the principle of protection of acquired rights and rights in training aims to ensure respect for these rights, in accordance with this law.

Article 21 principle of judicial guarantee the principle of judicial warranty ensures the parties access to the courts, in good time, to assert their right to benefits.

Article 22 information Principle the principle of information consists in the disclosure to all persons of their rights and duties as well as the information of your situation before the system and on your personalized service.

System Composition article 23 social security system covers the social protection system of citizenship, the insurance system and the complementary system. 11 article 24 1-system administration is the responsibility of the State, as regards the public component of the social security system, ensure their proper administration. 2-it is still the State ensure, with regard to the supplementary nature not public, proper and effective regulation, supervision and monitoring.

Article 25 relationship with foreign systems


1-the State promotes the celebration of coordination international instruments on social security in order to be guarantee equal treatment to people and their families engaged in activity or are residing in the territory of the States concerned with regard to rights and obligations in accordance with the applicable legislation, as well as the preservation of acquired rights and in training. 2-the State promotes also the participation or adherence to instruments designed to develop or the convergence of social security standards adopted within the framework of international organizations with competence in the matter.

CHAPTER II social protection system of citizenship section 1 objectives and composition article 26 1-Objectives the social protection system aims to guarantee citizens ' basic rights of citizens and the equality of opportunities, as well as promote the well-being and social cohesion. 12 2-To achieve the objectives referred to in the preceding paragraph, it is the social protection system of citizenship: a) the right to vital minimum gross of citizens in a situation of economic shortage; (b)) the prevention and eradication of situations of poverty and exclusion; c) compensation for family expenses; and d) compensation for financial burdens in the areas of disability and dependency.

Article 27 birth promotion 1-the law may establish special conditions of birth promotion to encourage the reconciliation of professional and family life, and meet, in particular, to the times of assistance to minor children. 2-the conditions referred to in the preceding paragraph may consist, in particular, in the development of social equipment support in early childhood, special mechanisms to support motherhood and fatherhood and in the differentiation and differentiation of benefits.

Article 28 Composition the ystem of social protection of citizenship encompasses the social subsystem, the subsystem of solidarity and the family protection subsystem.

Section II social subsystem article 29 1-Objectives the social subsystem has as main objectives the prevention and repair of situations of lack and socio-economic inequality, dependence, of dysfunction, exclusion or social vulnerability, as well as the integration and 13 promotion and community development capacities. 2-the social subsystem ensures special protection to the most vulnerable groups, namely children, young people, people with disabilities and the elderly, as well as to other persons in a situation of economic or social grace. 3-social action should also be combined with other public social policies, as well as being linked to the activity of public institutions.

Article 30 the objectives of social action Benefits come true, namely through: a) social amenities; b) programs to combat poverty, social exclusion, marginalization and dysfunction; c) cash benefits, of any nature and conditions of specialness; and d) benefits in kind.

Article 31 development of social action 1-social action is developed by the State, by local authorities and private non-profit institutions, in accordance with the priorities and programmes defined by the State and in line with the principles and guidelines set out in the following paragraphs. 2-the implementation of the social action conforms to the following principles and guidelines: a) priority Intervention of the entities closest to the citizens; b) social development through skills and community integration of individuals; c) responses in Terms of involvement and accountability of recipients; d) personalization, selectivity and flexibility of benefits and social restraint 14, in order to allow for their adequacy and effectiveness; e) efficient use of social amenities, with elimination of overlaps, gaps and asymmetries in the geographical layout of the resources involved; f) enhancement of partnerships, consisting of public and private entities, for integrated action to persons and families; g) voluntary social Stimulation, in order to ensure greater participation and involvement of civil society in the promotion of well-being and further harmonisation of social responses; and h) development of efficient articulation between entities with social responsibilities and services, in particular health and education. 3-the development of social action embodied in the targeted support for families, and may involve, in accordance with the set by law, the use of grants, cooperative agreements or protocols with the private institutions of social solidarity and other. 4-the creation and access to social amenities are promoted, encouraged and supported by the State, involving, where possible, the partners referred to in paragraph 6. 5-the use of social amenities may be conditioned upon payment of compartipações by their recipients, taking into account their incomes and those of their households. 6-the development of social action is, in the context of local intervention, by the establishment of partnerships, in particular through the social network, involving the participation and collaboration of the various central government bodies, local authorities, public institutions and private social solidarity institutions and other private institutions of recognised public interest.

Article 32 private institutions of social solidarity 1-the State supports and values the private social welfare institutions and other recognized public interest, non profit, pursuing 15 goals of social solidarity. 2-private social solidarity institutions and other recognized non profit public interest, laid down in paragraph 5 of article 63 of the Constitution, are subject to mandatory registration. 3-the State exercises powers of supervision and inspection on the private social welfare institutions and other recognized non profit public interest, pursuing social objectives, in order to ensure the effective fulfilment of their legal and contractual obligations, particularly as a result of agreements or cooperation protocols concluded with the State.

Article 33 of the initiatives of individuals and social equipment services pursued by private for-profit entities can benefit from incentives and benefits provided by law.

Article 34 licensing, inspection and monitoring the services and equipment provided by institutions and private entities with non-profit or lack of prior licensing and are subject to inspection and supervision of the State under the law.

Article 35 corporate social responsibility the State encourages and supports the initiatives of the companies that contribute to the development of social policies, in particular through the establishment of day-care services and equipment in support of maternity and paternity, childhood and old age and that will contribute to better reconciliation of professional and family life, of the members of the household.

16 section III solidarity subsystem article 36 1-Objectives the solidarity subsystem is intended to ensure, on the basis of solidarity of the community as a whole, essential rights in order to prevent and eradicate poverty and exclusion, as well as to ensure benefits in situations of personal or family need proven, not included in the insurance system. 2-the solidarity subsystem can also include, in the terms set by law, countervailing social or economic situations because of shortcomings or contributory insurance system features.

Article 37 personal 1-the solidarity subsystem covers nationals, and may be extended under the conditions laid down in the law, the non-nationals. 2-access to benefits is in compliance with the principles of social equality and of positive differentiation and should contribute to promoting social inclusion of individuals and families benefiting. 3-for the purposes set out in this Act, be deemed to be non-nationals, refugees, stateless persons and foreigners not assimilated to nationals by international social security instruments.

Article 38 1-material Scope the solidarity subsystem covers the following contingencies: the) Lack or insufficiency of economic resources of individuals and households to meet their essential needs and to promote their gradual social and professional insertion; b) disability; 17 c) old age; d) Death; and e) inadequacy of the overriding benefits of the income from work or the contributory career of the beneficiary. 2-the solidarity subsystem covers the situations of absolute and final disability beneficiaries of the insurance system, in part necessary to cover their contributory career failure in relation to the corresponding value of the invalidity pension. 3-the solidarity subsystem can still cover the costs arising from revenue decrease or increase of expenditure, without specific contribution base.


Article 39 Schemes covered the solidarity subsystem covers, inter alia, the non-contributory scheme, the special social security regime of agricultural activities, the transitional arrangements or other formally assimilated to non-contributory.

Article 40 access Conditions 1-the assignment of benefits of the solidarity subsystem depends on residence in national territory and other conditions laid down in the law. 2-the law may, in respect of non-nationals, do depend on access to the allocation of benefits of certain conditions, including minimum periods of legal residence or legally equivalent situations. 3-the granting of benefits does not depend on registration or involves the payment of contributions, being determined on the basis of the resources of the beneficiary and his/her family members.

Article 41-1 Benefits the protection afforded under the solidarity subsystem is 18 by granting of the following benefits: the Benefits of social income) of insertion; b) Social Pensions; c) unemployment social allowance; d) supplement for the elderly; and) Add-ons; and (f)) other benefits or transfers earmarked for specific purposes, in the context of achieving the objectives of this subsystem. 2-Notwithstanding the provisions of paragraphs 1 and 3 of the previous article, the attribution of social Add-ons may not depend on the verification of the conditions of residence and of resources, in accordance with the set by law.

Article 42 1-benefits Amounts the amounts of cash benefits of the subsystem of solidarity are fixed by law with the aim of ensuring the vital needs of the beneficiaries, to ensure basic rights of citizenship. 2-the amount of the benefits referred to in the preceding paragraph may be fixed on the basis of the income of the beneficiaries and their families, as well as of their size, and may be modified as a result of the amendment of these yields, the composition and size of the household or other legally prescribed factors.

Article 43 Terms the law provides for the insertion, under conditions of allocation of the benefits of the subsystem of solidarity where this is set, the assumption on the part of beneficiaries, of a commitment contratualizado and its effective observance.

Section IV family protection subsystem 19 article 44 family protection subsystem Goal aims to ensure the compensation of family expenses plus when occur legally provided for eventualities.

Article 45 personal family protection subsystem applies to most people.

Article 46 Scope family protection subsystem material covers, inter alia, the following contingencies: the) family expenses; b) Charges in the field of disabilities; and c) Charges in the field of addiction.

Article 47 access Conditions 1-the benefits of family protection subsystem depends on residence in national territory and other conditions laid down in the law. 2-the law may, in respect of non-nationals, do depend on access to the allocation of benefits of certain conditions, including minimum periods of legal residence or legally equivalent situations. 3-the law may lay down special conditions of access on the basis of contingencies to protect. 4-the provisions of paragraph 1 shall not affect the application of provisions of international social security instruments.

20 article 48-1 protection Benefits in contingencies planned under the family protection subsystem is through the provision of cash benefits. 2-the protection referred to in paragraph 1 is likely to be extended, in order to respond to new social needs, in particular in the case of single-parent families, as well as those which fall, specifically, the areas of disability and dependency. 3-the law may provide that, in order to ensure a better coverage of social risks, the granting of benefits in kind. 4-the right to family protection subsystem shall be without prejudice to the allocation of social welfare payments referred to in point (c)) article 30 article 49 benefits Amounts the amounts of cash benefits to be allocated within the scope of the protection provided for in this section shall be determined on the basis of income, the composition and size of the households of the beneficiaries and eventually, the charges incurred, and modified under the terms and conditions to be laid down by law.

CHAPTER III by System article 50 insurance system Aims to guarantee, based on a principle of solidarity of professional base, cash benefits instead of work income lost as a result of the verification of legally defined contingencies.

21 Article 51 1 personal-Are covered by the compulsory insurance system, the quality of the employees or legally assimilated and the self-employed. 2-people who do not engage in professional activity or exercising it are not, therefore, necessarily framed in accordance with the provisions of the preceding paragraph, may join the social protection as defined in this chapter, under the conditions laid down in the law.

Article 52 Scope 1 material-social protection is regulated in this chapter integrates the following eventualities: (a)); b) maternity, paternity and adoption; c) Unemployment; d) accidents at work and occupational diseases; e) invalidity benefits; f) old age; and g) Death.

2-the list of protected categories may be extended, depending on the need to give coverage to new social risks, or reduced, according to the terms and conditions legally provided for, on the basis of certain situations and categories of beneficiaries.

Article 53 Schemes covered the insurance system covers the general social security scheme applicable to the majority of employees and the self-employed, 22 special regimes, as well as voluntary registration schemes covered by paragraph 2 of article 51 article 54 principle of contributividade by system must be fundamentally self-financing, based on a relationship directly between the sinalagmática legal obligation to contribute and the entitlement to benefits.

Article 55 access Conditions Are general conditions of access to social protection guaranteed by system schemes by the registration and compliance with the obligation to pay the workers and, where appropriate, their respective employers.

Article 56 1 contributors ' obligations-beneficiaries and, in the case of exercise of professional activity, their employers, be obliged to contribute to the social security schemes. 2-the contributory obligation of employers constitutes with the beginning of the exercise of professional activity of workers at your service. 3-the law defines the mode and conditions of implementation of the obligation to pay and the other obligations of contributors to the system. 4-the law establishes yet, in cases of non-compliance with the obligations of taxpayers, the regime of its unofficial supply social security services.

23 article 57 determining the amount of contributions 1-the amount of the contributions of employees and employers ' contributions is determined by applying the legally provided to the remuneration rates that, under the law, constitute contributory base. 2-the law defines the criteria and conditions for the registration of payments for equivalence to the contributions, particularly with regard to legal relevance, value the register and their registration period. 3-contribution rates are fixed, actuarialmente, depending on the cost of protection of contingencies provided for, without prejudice to the possibility of adjustments, in particular due to the nature of the specific situations of the contributors, or beneficiaries of employment policies. 4-the law may provide for mechanisms of adaptation of the contributory effort, justified by changes in economic, social and demographic conditions, in particular by sharing techniques and conjugation of capitalization.

Article 58 1 contribution Limits-the law may provide for, protecting rights acquired and in training and ensuring the financial sustainability of the public component of the system of distribution and national public accounts and compliance with the principle of solidarity, the application of upper bounds the values considered as contributory tax base or the reduction of the rates of General contributory with a view in particular to strengthening workers ' savings managed financial capitalization regime. 2-the legal determination of the limits referred to in paragraph 1 is based on a proposal based on the report to demonstrate, unequivocally, that the requirements referred to in paragraph 1 and shall be preceded by a favourable opinion of the Executive Committee of the National Council of Social Security.

24 Article 59 responsibility for payment of contributions


1-employers are responsible for the payment of workers ' contributions to their service, and to that end undertake, upon payment of remuneration, the withholding of the corresponding values. 2-are null the clauses of the contract, either individually or collectively, by which the worker to assume the obligation to pay all or part of the contributions payable by the employer.

Article 60 enforced collection and prescription 1 contributions-contributions and unpaid contributions and other amounts due, are subject to enforced collection in legal terms. 2-the obligation of the payment of contributions and the contributions shall become statute-barred within five years from the date on which that obligation should have been fulfilled. 3-prescribing stops by any administrative diligence, performed with knowledge of the liable to pay, leading to settlement or debt collection.

Article 61 assignment of benefits Conditions 1-Is the general condition of attribution of benefits, in the eventuality in which it is required, during a minimum period of contribution or equivalent situation. 2-during the period referred to in the preceding paragraph may be regarded as fulfilled by the use of aggregation of contributory periods or equivalent, recorded within the framework of social protection schemes, national or foreign, pursuant to the law or applicable international instruments. 3-can still be provided for by law, for each event, special conditions of access to benefits. 4-lack of compliance with the obligation of registration, including the lack of Declaration of 25 beginning of occupation or the lack of payment of contributions relating to periods of exercise of professional activity of the employees which is not attributable to it, does not affect the entitlement to benefits.

Article 62 the amounts of benefits Determination 1-the value of remuneration recorded forms the basis of calculation for determining the amount of cash benefits instead of income, real or presumed, of the professional activity. 2-Notwithstanding the previous paragraph, the determination of the amounts of benefits can also take into consideration other elements, in particular and as appropriate, the nature of the event, the duration of the contributory career, the beneficiary's age or degree of disability. 3-where the cash benefits of the social security schemes may be lower than the legally fixed minimum values is guaranteed the granting of that value or assignment of benefits that complement each other. 4-the values of the sickness and unemployment allowances cannot be higher than the values of the respective remuneration, net of taxes and social security contributions, which were the basis of calculation of benefits.

Article 63 1 pensions-legal framework the legal framework of pensions should be gradually adapted to new social conditions, in order to ensure the greater equity and social justice in their realisation. 2-the law may establish measures of flexibility of legal age for the award of pensions, through mechanisms of reduction or rebate of pensions, depending on whether it lower or higher than the age that is defined in general terms. 3-the law may provide for a positive differentiation of replacement rates in favour of beneficiaries with lower wages, since the principle of contributividade. 26 4-the calculation of old-age and invalidity pension based on income from work, revalued, the whole contributory career, in accordance with the law. 5-the values of remuneration as a basis for the calculation of pensions shall be updated in accordance with the criteria set out in the law, in particular taking into account inflation.

Article 64 1 sustainability Factor-the amount of the statutory pension, calculated in accordance with the law, shall apply a sustainability factor related to the evolution of life expectancy, with a view to the adaptation of the system to the changes resulting from demographic and economic changes. 2-the sustainability factor is defined by the relationship between average life expectancy recorded in a given year and the average life expectancy that is established in the year preceding the pension application.

Article 65 pension Accumulation with earnings from work the law sets out the terms and conditions of pension accumulation with earnings from work.

Article 66 rights acquired and in training 1-applies to system schemes by the principle of protection of acquired rights and rights in training. 2-For the purposes of paragraph 1: a) acquired rights, the already recognized or may be because they are meeting all legal requirements necessary for their recognition; b) rights in training, the corresponding contributory periods and compensation values recorded in the beneficiary's name. 27 3-persons retain the right to cash benefits social security schemes still transferring the residence of the national territory, without prejudice to applicable international instruments. 4-the effects of fee will cease to exist by the passage of time.

CHAPTER IV provisions common to the solidarity and family protection subsystem and the insurance system section I Benefits article 67 1 Accumulation of benefits-unless provided otherwise legal, shall not be cumulated with each other the benefits emerging from the same fact, since for the same interest protected. 2-the rules on cumulation of benefits arising from different eventualities are governed by law, and may not, under any circumstances, result from its application amount lower than the highest benefit or excess on the total value. 3-for the purposes of accumulation of cash benefits may be taken into account benefits provided by foreign social security systems, without prejudice to applicable international instruments.

Article 68 Social support Index and update the value of benefits 1-amounts of social support, namely the pension minimum values shall be based on the Social support Index, as defined by law. 2-the reference value provided for in the preceding paragraph is subject to annual updating, taking into account a set of cogent criteria, namely price developments and economic growth. 28 3-annual update of benefits obeys objective criteria laid down by law to ensure respect for the principle of intergenerational equity and the financial sustainability of the social security system.

Article 69 Prescription entitlement to benefits the right to cash benefits due shall become statute-barred in favour of institutions making payments within five years, counted from the date on which they are put to the payment, with the lender's knowledge.

Article 70 third-party liability in the case of competition for the same fact that entitlement to cash benefits social security schemes with the compensation to be borne by third parties, the social security institutions are subrogated to the injured person to the extent of the value of benefits to them.

Section II Guarantees and litigation article 71 and State of beneficiaries 1-it is for the State to ensure regular information on beneficiaries of their rights, and in training, particularly with regard to pensions. 2-persons have a duty to cooperate with the social security institutions, and, in particular, be them real in their statements and requirements and submit to verification tests necessary for the provision or maintenance of benefits to which they are entitled.

29 Article 72 non-transferability and partial benefits 1 penhorabilidade-the benefits provided by social security institutions are not transferable. 2-benefits of social security schemes are partially attachable pursuant to general law.

Article 73 the guarantee of right to information recipients and employers have the right to appropriate information on the rights and obligations arising from this Act and complementary legislation.

Article 74 of the regularity of the Certification situations 1-Any person or entity subject to obligations to the social security institutions may request, at any time, be issued proof of compliance with these obligations regular. 2-When is not issued the declaration mentioned in the preceding paragraph, the particular can request the administrative courts intimem the Administration for passing the corresponding certificate in legal terms.

Article 75 Confidentiality


1-The social security institutions covered by this law shall ensure the confidentiality of the data of strictly private nature in their possession, concerning the financial, economic or personal situation of any person or entity. 2-the obligation referred to in the preceding paragraph ceases with the permission of the respective person concerned or where there is a legal obligation to disclose the data covered by confidentiality.

30 Article 76 claims and complaints 1-stakeholders in the system benefits may submit claims or complaints whenever consider themselves disadvantaged in their rights. 2-The claims or complaints are addressed to the institutions responsible for granting the benefits, without prejudice to the contentious guarantees recognized by law. 3-the process for assessing claims has as a matter of urgency.

Article 77 contentious Guarantees the actions and omissions of the administration within the framework of the social security system are likely to litigation response under the code of procedure in administrative courts.

Article 78 Nullity of administrative acts of assignment of rights or recognition of legal situations, based on false information, provided intentionally or with bad faith by beneficiaries, are void and punished in accordance with the applicable legislation.

Article 79 Repeal of acts 1-invalid acts of administration of rights or benefits invalid payment terms and are deleted within the time limits provided by law, without prejudice to the next paragraph. 2-The administrative acts of continued benefits assignment may exceeded the term invalid the general law, be repealed effective for the future.

31 Article 80 non-compliance with the legal obligations to a lack of compliance with the legal requirements concerning, in particular, the entry into the system, to schemes and contributory obligations, as well as the adoption of procedures, by action or omission, aimed at obtaining undue benefits, are criminal offences or unlawful, as defined by law.

Chapter V supplementary System section 1 composition of the complementary system article 81 1 Composition-the complementary system comprises a public scheme for capitalization and supplementary collective initiative and individual initiative. 2-supplementary are recognized as significant instruments of social protection and solidarity, achieved on sharing of social responsibilities and its development be stimulated by the State through incentives considered appropriate.

SECTION II capitalization public scheme Article 82 1 Characterization-the public savings scheme is a voluntary individual membership scheme, whose organization and management is the responsibility of the State, which seeks to award additional benefits of the insurance system, with a view to strengthening the social protection of the 32 recipients. 2-in the implementation of the provisions of paragraph 4 of article 57, can be created by law, for each beneficiary, individual accounts managed in financial savings scheme, which grant them social protection. 3-the law defines the conditions for membership, the characteristics, the guarantee of rights, the method of financing, the scheme of transmission by death and the tax treatment of accounts mentioned in the preceding paragraph. 4-the law defines the forms of management of individual accounts, in particular the possibility of management contracts with private sector entities.

SECTION III collective and individual initiative schemes Article 83 Nature of collective initiative 1-supplementary collective initiative are optional institution schemes in favour of a particular group of people. 2-integrate in the arrangements referred to in the preceding paragraphs the supplementary occupational schemes. 3-Professional complementary schemes covering employees of an enterprise, of groups of companies or other employers, as well as a self-employed professional or industry sector. 4-Professional complementary schemes are funded by employers or self-employed, without prejudice to possible payment of contributions on the part of employees.

Article 84 nature of individual initiative schemes supplementary individual initiative are optional institution, assuming, among other things, the form of retirement savings plans, life insurance, savings and insurance mutual arrangements. 33 Article 85 1-Administration supplementary collective and individual initiative can be administered by public authorities or private cooperatives, in particular of mutualist nature created for this purpose in terms of the law. 2-When, in the context of an occupational scheme is concerned, the granting of benefits in contingencies of invalidity, old age and death, their management has to be granted the separate legal entity of the imposed.

Article 86 regulation, supervision and guarantee of supplementary 1-the creation and modification of the supplementary collective and individual initiative and its articulation with the insurance subsystem are defined by law governing, inter alia, the scope of material, technical and financial conditions of the benefits and the guarantee of their rights. 2-the regulation of supplementary collective initiative must still implement the principle of equal treatment on grounds of sex and the legal protection of acquired rights and in training, and to lay down the rules on portability of those rights, the equality of tax treatment between regimes and the right to information. 3-the regulation, supervision and monitoring of supplementary schemes referred to in this section is conducted in accordance with law and legally defined entities. 4-the law also provides for the establishment of supplementary insurance mechanisms referred to in this section.

CHAPTER VI Article 87 34 Financing the financing Principles of the system obeys the principles of diversification of sources of funding and adequacy selective.

Article 88 principle of diversification of sources of financing the principle of diversification of sources of financing implies the expansion of the bases of obtaining financial resources with a view to, inter alia, the reduction of non-wage costs of labour.

Article 89 principle of selective adequacy the principle of selective adequacy consists in determining the sources of funding and in the allocation of financial resources, in accordance with the nature and the objectives of social protection arrangements laid down in this law and situations and special measures, including those related to active employment policies and vocational training.

Article 90 1-forms of financing the protection guaranteed under the system of social protection of citizenship is financed by transfers from the State budget. 2-benefits instead of income from professional activities, assigned under the insurance system and active employment policies and vocational training, shall be financed by contributions from workers and employers ' contributions. 3-Notwithstanding the preceding paragraph, the national counterpart of expenditure financed under the European Social Fund, is supported by the State budget. 35 4-administration expenses and other expenses are common system financed through the corresponding sources to social protection systems and pension contributions made by citizens, in proportion of their respective charges. 5-Can still be recipes of social action funds allocated by law to that effect, in particular those arising from social games revenues. 6-the provisions of this article shall be regulated by law.

Article 91 public Capitalisation 1-reverts to the Fund of social security's financial Stabilization one portion between two and four percentage points of the percentage value corresponding to the contributions of the employees, until that Fund ensures predictable pension expenditure coverage, for a minimum period of two years. 2-annual balances of the insurance system, as well as the revenue resulting from the sale of assets and gains obtained from financial applications, integrate the Fund referred to in the preceding paragraph, being managed on a funded. 3-there may be no place for the application of paragraph 1, if the economic situation of the year to which it relates or the financial situation of the insurance system rightly exist for so doing.

Article 92 funding sources


Constitute sources of funding: a) The contributions of workers; b) employers ' contributions; c) transfers from the State and other public bodies; d) tax revenues legally laid down; and) income from own assets and income from assets of the State enshrined the strengthening of Financial Stabilization Fund of Social Security; f) the product of contributions provided for in law or regulations; 36 g) the product of financial penalties; h) shipments of foreign bodies; I) the product of any excess quantities of the execution of the State budget each year; and j) Other legally provided for or permitted.

Article 93 social security Budget 1-the social security budget is presented by the Government and approved by Parliament as part of the State budget. 2-rules for the preparation, organization, approval, implementation and control of the social security budget are laid down in Act No. 91/2001, of 20 August, as amended by organic law No. 2/2002, of August 28, law No. 23/2003, of July 2 and law No. 48/2004, 24 August. 3-the Government presents to Parliament a specification of the revenues and expenditure of social security, broken down by the different forms of social protection, in particular by the contingencies covered by insurance and social protection systems of citizenship and their subsystems. 4-the Government draws up and submits to Parliament an updated long-term projection, namely the burden with deferred benefits and contributions of employees and employers ' contributions.

CHAPTER VII Organization article 94 1-organisational structure the organisational structure of the system comprises services which are part of the direct labour and indirect State administration. 2-the services referred to in the last part of the previous paragraph are legal persons governed by public law, called social security institutions.

37 article 95 National Social Security Council 1-participation in the policy process, objectives and priorities of the system is ensured by the National Council of Social Security. 2-will be created, within the Council, an Executive Committee consisting of tripartite representatives form the State, the social partners trade unions and employers. 3-the law determines the responsibilities, powers and composition of the Board and of the Executive Board, taking into account, as the latter, the provisions of paragraph 2 of Article 96 article 58 participation in social security institutions the law defines the forms of participation in social security institutions, trade unions and employers, as well as other entities interested in the functioning of the system.

Article 97 1-Exemptions The social security institutions enjoy exemptions recognized by State law. 2-capitalization public funds, in particular the Financial Stabilization Fund of social security benefit from the exemptions provided for in the law.

Article 98 1 information system-the management of the social security system is based on a national information system with the following objectives: to) ensure that the benefits are granted in a timely manner to their recipients; b) ensure effective collection of the contributions and the fight against fraud and tax evasion, as well as 38 avoid undue payment of benefits; c) Organise national databases; and (d)) Develop procedures and channels that emphasize the exchange of and access to information in an electronic medium, in order to promote the reduction of bureaucracy and the acceleration of the decision-making processes. 2-the social security system promoting, where necessary, the articulation of the databases of the various interdepartmental areas, in order to simplify people's relationship with the Public Administration and improve its effectiveness.

Article 99 1-Id are subject to identification in the information system the natural and legal persons related to the social security system. 2-the Declaration of commencement of activity tax is automatically communicated to the social security system.

CHAPTER VIII transitional provisions article 100 acquired rights and in training development and the regulation of this law shall be without prejudice to rights acquired, accrued warranty periods under the previous legislation, nor the pension resulting from quantitative remuneration recorded under that legislation.

Transitional provisions article 101 of calculating pensions subject to the provisions of paragraph 4 of article 63, overlook, in the calculation of pensions and with respect for the principle of proportionality, the career contribution periods completed under the previous legislation, as well as 39 rules determining current pensions, when applicable to the situation of the beneficiary.

Article 102 socio-professional groups, the law defines the terms on which effective integration in insurance system for workers and their employers by that partially covered.

Article 103 special schemes for The Special schemes in force at the date of entry into force of this law shall continue to apply, including provisions on its functioning, to groups of workers for the same covered, with respect for acquired rights and in training.

Article 104 the civil service Schemes Must be pursued the convergence of civil service schemes with the schemes of the social security system.

Article 105 financing of the social protection system of the citizenship law defines the terms of transition to the form of financing of the social protection system of citizenship provided for in paragraph 1 of article 90 article 106 Application security institutions remain autonomous social institutions created prior to the entry into force of Decree-Law No 549/77, of December 31 with their legal regimes and forms of private management, getting in the alternative subject to the provisions of this law and 40 resulting legislation, with the necessary adaptations.

CHAPTER IX final provisions article 107 protection in accidents at work the law establishes the legal regime of mandatory protection in case of an accident at work, defining the terms of the related liability.

Article 108 autonomous regions the application of this law to the autonomous regions of the Azores and Madeira shall not affect the rules in terms of organisation and functioning, as well as the regionalisation of the social security services.

Article 109 1-set Standard is revoked the law No. 32/2002, of 20 December. 2-To express revocation, remain in force legal provisions and regulations adopted under the law No. 28/84 of 14 August, no. 17/2000 of 8 August and no. 32/2002, of 20 December.

Article 110 entry into force and effect 1 – this law shall enter into force on the day following that of its publication. 2-the provisions of article 68 shall take effect from 1 January 2007.

Seen and approved by the Council of Ministers of 12 October 2006 41 Prime Minister the Minister of Parliamentary Affairs Minister Presidency