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Approves The General Bases Of The Social Security System

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

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PROPOSED LAW NO. 101 /X

Exhibition of Motives

1-The XVII Constitutional Government, considering the weakening of the policies of

social protection and the financial deterioration of the social security system,

verified in the three years prior to his taking of possession, charted in the respective

Programme, as a priority objective of action in this field, the launch of a

third generation of social policies based, on the one hand, on the guarantee of

economic, social and financial sustainability of the social security system and, by

another, in the priority given to combating poverty. In order to the preservation of the

long-term sustainability of the social security system, initiated immediately

the convergence of the social protection regime of officials and agents of the State

in relation to the general regime of social security, particularly in touching age

of reform, while also revoking various special access schemes

early retirement pension, generating situations of severe point iniquities

of a social and unsustainable view from the financial point of view. In view of the

enhancement of the mechanisms for combating poverty and promoting equality of

opportunities, has advanced since as soon as also with the creation of a new provision

extraordinary, the sympathetic complement to the elderly, targeting a segment of the

population still, among us, particularly fragilized from the economic point of view

and social, as it hit by the most severe and persistent levels of poverty.

2-It was possible to adopt all these measures having still under the framework of Law No 32/2002,

of December 20. However, given the need to preserve and strengthen the

financial and social sustainability of the system, in the face of the new constraints

of demographic and economic order with which the Portuguese society is facing,

urge to introduce a set of structural changes which, since soon,

contribute to the minimization of the impact of ageing on balance

financial security financial. Started in the mid-nineties-with the

concretization, under the Act No. 17/2000 of August 8, of new principles in

financing matters and a new formula for calculating retirement pensions

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-, the process of social security reform was inadvertently interrupted to

from April 2002. It matters now to retake it at the right point, immering yourself,

for so much, a political attitude of realism, common sense and responsibility.

Hence, because guided by this attitude of political seriousness, the Government

presented, soon with the proposed State Budget Bill for 2006, a

report containing a concrete and technically substantiated reassessment not

only from the present and future situation of the system, but also from the foreseeable impact

resulting from the adoption of new measures to reform social protection. Complies

now give due legislative framing to measures that, given their nature

structuring and for implying a change in the philosophical conception of the System of

Social Security, complain the passing of a new Bases Act, in the wake

of the important recently hedged Social Security Reform Agreement, in

seat of Standing Committee on Social Concertation.

3-A The proposal that presents itself translates, in fact, a cut in the face of solutions

contained in the still current Law No. 32/2002 of December 20, or in the plan of the

generic conception of the System (its structure and relative size of each of the

its subsystems and regimes), either in the plan of the informers principles, and

contraption you with a view that considers itself more progressive in the way of designing the

social security listening to the constraints that today condition it.

This proposal intends to break with the option, contained in Law No. 32/2002, of 20 of

December, which called into question the principle of the primacy of public management of the

system, with certainly gravitatious consequences from the social point of view and even

economic. Let's add that not settling in that law substantive limits and

sufficiently tight procedurals, which accrunes the costs of transition

of the current model for the proposed there, open the door to untimely concretion

of the private complementarity, without sufficient respect for the principle of

solidarity and putting at risk the immediate balance of the system, and soon also the

your future sustainability.

4-A The proposal now put forward by the Government devotes important changes, since

soon, as to the architecture of the system. This one appears structured second three

pataseas that are intended to be articulated and functioning in an integrated manner,

guaranteeing all citizens access to social protection. Thus, in the first

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place, the system of social protection of citizenship that is in turn, in turn,

divided into the subsystems of social action, solidarity and family protection.

Second, the previdential system and, in third, the complementary system,

constituted, for its part, by the public capitalisation scheme and the schemes

complementary to collective and individual initiative.

The proposal welcomes a universalist view of the system, giving emphasis, in terms

systematics and background (Chapter I), the system of social protection of citizenship

(first plateau), there including also now family protection, and so

ending-as is logical and natural-all the protection of citizenship. What if

intends here, in order to the efectiveness of social justice and to the affirmation of a larger

redistributive pendor, is to combine, in a balanced way, the principle of

universality with the principles of selectivity (condition of resources) and of the

positive differentiation in function of income and the aggregate size

family (by the modulation and flexibility of benefits). In addition, it recovers the

solution-already plastered in Law No. 17/2000, of August 8-of inclusion in this

System, of social action. This is, in effect, an area of social protection

characterized by its objectives of combating poverty, promoting inclusion

and of ensuring equal opportunities, favoring basic levels of life

with dignity, being in it primarily concerned with the idea of protection of citizenship.

The second plateau is now equivalent to the previdential system (Chapter III), marked

amusement by the principle of the contributivity, yet it aces the principle of the

solidarity (of labour base) and even positive differentiation (since soon, at rates

of replacement of pensions). There was still the concern to make reference and

summary explanatory to the main operative concepts of these system, such as

"contributory obligation", "taxpayer obligations" and " record of remuneration

by equivalence ".

5-But, above all, the Chapter in appreciation, along with the new ones

provisions common to this and the Citizenship Social Protection System (Chapter

IV), devotes a set of important and structuring measures of reform of the

social security system. So, first of all, the allusion to the institute of the

officious supply of the taxpayer obligations that will allow the services of the

social security, in the event of non-compliance of the respective obligations

declarative, replace them officiously, in such a way as to avoid contributory hiatus

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which may call into question the thematic collection of recipes. In the second place, the

profound amendment of the article relating to the determination of the amounts of the

contributions, suppressing the prediction of the two contributory tects predicted in the

Law No. 32/2002 of December 20, but by holding an allusion to the possibility

of creating a top contributory roof or an eventual rate reduction

contributor. The introduction of these measures is now surrounded by, however,

increased substantive and procedural cautions, specifically by necessity

of respect for the principle of solidarity and preservation of balance and

sustainability of the system. In addition to this, the appropriateness of the effort is expected

contributory, justified by the changes in economic, social conditions and

demographics, specifically by the pooling of apportionment techniques and

capitalisation, to be realized later in the complementary system ( maxime with

the new public capitalization regime). In the third place, the consecration of a

new rule regarding the promotion of birth, predicting itself for both the introduction

of new mechanisms of bonification or modulation of benefits. In room

place, the introduction, in the determination of the amounts of the pensions, of the factor of

sustainability, related to the evolution of the average life expectancy and which will be

the fundamental element of adequacy of the pension system to the modifications of

demographic or economic origin, thus contributing, unequivocally, to the

safeguarding the future sustainability of social security. In fifth place, but

no less important, the prediction of introduction of the Indexing of Social Apoios,

that will replace the current indexations to the national minimum wage and, well, the

establishment of new rules in respect of updating the value of benefits.

A final reference still, contemplated in the transitional provisions, to the

shortening of the transition period from the old rules of calculation of pensions to

the new ones, constants of the Decree-Law No. 35/2002 of February 19, measure

considered fundamental not only in the plan of social justice, as yet of the

point of view of the financial balance, preserving, however, its nature

gradual and the safeguarding of acquired rights.

6-Also with regard to the configuration of the supplementary system (the third

level of protection, in Chapter V), if important novelties are contemplated. Treats-

if, first of all, of a different conception: it is now understood to

true complementary system of the public previdential system and not as its

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substituted tendential. Then, it is planned, in innovative terms, a public regime

of capitalization, based on the creation of individual accounts fed through the

additional and optional contributory effort that the beneficiary decides to do in the framework

of the payment of the respective quotization / contribution. The creation of this new regime

translate, from the point of view of the beneficiaries, into an effect of improvement of the

respective value of the pension, compensating, in particular, the possible losses

felt because of the application of the sustainability factor. But, above all, the

establishment of this regime is a decisive step in deepening responsibility

individual citizens, in the management of their contributory career, without however, putting in

cause, the value of intergenerational solidarity that is now purports even

reinforce. Finally, the proposal does not stop contemplating the normative framework

essential in which they will be able to develop and operate the private initiatives

complimentary, collective or individual, deferring to ordinary legislation to

its realization.

7-Concretizing, for, the Social Security Reform Agreement, this proposal

sets out the framework necessary for the implementation of the measures that will contribute, from

unambiguous form, for the resolution of the long-term financial problems of the

Social Security, without this abdition yet of its sympathetic vocation.

It combines in a balanced way the values of solidarity and freedom and of the

individual responsibility, welcomes, with reservation of the principle of the priming of the management

public, the sharing of tasks among the various sectors of society, with a view to the

bringing about widespread and fair social protection, which knows to be an element

of stimulus and not to hinder growth and economic development

continuous of the country.

Thus:

Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

CHAPTER I

Objectives and principles

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Article 1.

Subject

This Law sets out the general bases on which the social security system is based,

hereinafter referred to as a system, as well as the initiatives particulars of analogous purposes.

Article 2.

Right to social security

1-Everyone has a right to social security.

2-The right to social security is efective by the system and exercised in the terms

established in the Constitution, the applicable international instruments and the

present law.

Article 3.

Irrenunciability of the right to social security

They are null and void the clauses of the contract, individual or collective, by which to renounce the

rights conferred by this Law.

Article 4.

Objectives of the system

They constitute priority objectives of the social security system:

a) Ensure the realization of the right to social security;

b) Promoting the sustained improvement of conditions and levels of social protection

and the reinforcement of the respective equity; and

c) To promote the effectiveness of the system and the efficiency of its management.

Article 5.

General principles

They constitute general principles of the system the principle of universality, equality,

solidarity, social equity, positive differentiation, subsidiarity, the

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social insertion, intergenerational cohesion, the primacy of public responsibility, of the

complementarity, unity, decentralization, participation, effectiveness, the

tutelage of acquired rights and rights in training, judicial assurance and the

information.

Article 6.

Principle of universality

The principle of universality consists in the access of all persons to social protection

ensured by the system, in the terms defined by law.

Article 7.

Principle of equality

The principle of equality consists in the non-discrimination of the beneficiaries,

in particular on the grounds of sex and nationality, without prejudice, as to this, of

conditions of residence and reciprocity.

Article 8.

Principle of solidarity

1-The principle of solidarity consists of the collective responsibility of the people

each other in the realization of the purposes of the system and involves the state contest in the

its funding, under the terms of this Law.

2-The principle of solidarity comes to fruition:

a) On the national level, through the transfer of resources among the citizens, from

form to enable all effective equality of opportunity and the guarantee

of minimum social income for the most disadvantaged;

b) In the labour plan, through the operation of redistributive mechanisms in the

scope of professional basic protection; and

c) In the intergenerational plan, through the combination of financing methods

in apportionment and capitalization regime.

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Article 9.

Principle of social equity

The principle of social equity translates into the equal treatment of equal situations and in the

differential treatment of unequal situations.

Article 10.

Principle of positive differentiation

The principle of positive differentiation consists in the relaxation and modulation of the

benefits depending on income, social eventualities and other factors,

particularly, of a family, social, labour and demographic nature.

Article 11.

Principle of subsidiarity

The principle of subsidiarity is based on the recognition of the essential role of

people, families and other non-public institutions in the pursuit of the objectives

of social security, specifically in the development of social action.

Article 12.

Principle of social insertion

The principle of social insertion is characterised by active nature, preventive and

personalized of the actions developed within the framework of the system with a view to eliminating the

causes of marginalization and social exclusion and to promote human dignification.

Article 13.

Principle of intergenerational cohesion

The principle of intergenerational cohesion implies an adjusted balance and equity

generational in the assumption of the responsibilities of the system.

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Article 14.

Principle of the primacy of public responsibility

The principle of the primacy of public responsibility consists of the duty of the State to

creating the necessary conditions for the efectiveness of the right to social security and to organize,

coordinate and subsidize the social security system.

Article 15.

Principle of complementarity

The principle of complementarity consists in the articulation of the various forms of

public social, social, cooperative, mutualistic and private social protection with the objective

of improving coverage of the situations covered and promoting the sharing of the

responsibilities in the different pataseas of social protection.

Article 16.

Principle of unity

The principle of unity presupposes an articulated performance of the different systems,

subsystems and social security schemes in the sense of their harmonisation and

complementarity.

Article 17.

Principle of decentralization

The principle of decentralization manifests itself by the autonomy of the institutions, having in

view a further rapprochement of populations, in the framework of the organisation and planning

of the system and national framework standards and guidelines, as well as the functions of

supervision and oversight of public authorities.

Article 18.

Principle of participation

The principle of participation involves the accountability of those interested in the definition,

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in the planning and management of the system and the monitoring and evaluation of its

health.

Article 19.

Principle of effectiveness

The principle of effectiveness consists in the timely provision of the benefits legally

provided for, for an appropriate prevention and repair of eventualities and promotion of

digniped conditions of life.

Article 20.

Principle of the tutelage of acquired rights and rights in formation

The principle of the tutelage of acquired rights and rights in training aims to ensure the

respect for these rights, pursuant to this Law.

Article 21.

Principle of judicial guarantee

The principle of judicial guarantee assures those interested in access to the courts, in

Useful time, to make it worth your right to benefits.

Article 22.

Principle of information

The principle of information consists in the disclosure to all persons of their rights and

duties as well as in informing your situation in the face of the system and in your

personalized listening.

Article 23.

Composition of the system

The social security system covers the system of social protection of citizenship, the

previdential system and the supplementary system.

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Article 24.

Administration of the system

1-Compete to the State, with regard to the public component of the system of

social security, ensure your good administration.

2-Compete still to the State to ensure, with regard to the schemes

complementary to non-public nature, an appropriate and effective regulation,

prudential supervision and surveillance.

Article 25.

Relation with foreign systems

1-The State promotes the celebration of international instruments of coordination

on social security with the aim of being to ensure equal treatment to the

people and their families who exercise activity or reside in the territory of the States

Concerned with respect to the rights and obligations under the applicable law,

as well as the conservation of rights acquired and in formation.

2-The State shall also promote participation or adherence to instruments that are aimed at

the development or convergence of the social security standards adopted in the

framework of international organizations with competence in the matter.

CHAPTER II

System of social protection of citizenship

Section I

Objectives and composition

Article 26.

Objectives

1-The system of social protection of citizenship has for objectives to guarantee rights

basic citizens and equal opportunities, as well as promoting the good-

be and social cohesion.

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2-For realization of the objectives mentioned in the preceding paragraph, it is incumbent on the

social protection system of citizenship:

a) The actuation of the right to vital minimums of citizens in a situation of deficiency

economic;

b) The prevention and eradication of situations of poverty and exclusion;

c) The compensation for family charges; and

d) The compensation for charges in the fields of disability and dependence.

Article 27.

Promotion of birth

1-A The law may establish special birth promotion conditions that

favour the reconciliation between personal, professional and family life and meet, in

special, to the times of assistance to minor children.

2-The conditions referred to in the preceding paragraph may consist of, in particular, the

development of social support equipment in early childhood, in

special mechanisms of support for motherhood and parenthood and differentiation and

modulation of benefits.

Article 28.

Composition

The social protection isteme of citizenship encompasses the subsystem of social action, the

solidarity subsystem and the family protection subsystem.

Section II

Subsystem of social action

Article 29.

Objectives

1-The subsystem of social action has as fundamental objectives the prevention and

remediation of situations of deficiency and socio-economic inequality, of dependence,

of dysfunction, exclusion or social vulnerability, as well as integration and

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community promotion of people and the development of their respective

capacities.

2-The social action subsystem ensures even special protection for groups more

vulnerable, namely children, young people, people with disabilities and the elderly, well

as to other people in a situation of economic or social dementia.

3-A Social action should still be combined with other public social policies, well

how to be articulated with the activity of non-public institutions.

Article 30.

Benefits

The objectives of social action are realized, in particular through:

a) Social services and equipment;

b) Programs to combat poverty, dysfunction, marginalization and exclusion

social;

c) Pecuniary benefits, of an eventual character and in conditions of

exceptionality; and

d) Benefits in kind.

Article 31.

Development of social action

1-A social action is developed by the state, authorities and institutions

not-for-profit private, according to the priorities and programs defined

by the State and in line with the defined principles and guidelines

in the following numbers.

2-A The realization of social action shall comply with the following principles and lines of

guidance:

a) Priority intervention of the entities closest to the citizens;

b) Social development through the qualification and community integration of the

individuals;

c) Contractualization of responses in an optics of engagement and of

accountability of recipients;

d) Personalization, selectivity and flexibility of benefits and supports

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social, so as to allow for their suitability and effectiveness;

e) Efficient use of social services and equipment, with elimination of

overlaps, gaps in acting and asymmetries in the geographical provision of the

resources involved;

f) Enhancement of partnerships, consisting of public and private entities,

for an integrated performance with the people and families;

g) Stimulation of social volunteerism, with a view to ensuring a greater

participation and involvement of civil society in the promotion of welfare and

a further harmonisation of social responses; and

h) Development of efficient articulation among entities with

social responsibilities and services, particularly of health and of

education.

3-The development of social action connates itself in the targeted support of the

families, and may involve, in the terms to be defined by law, the recourse to grants,

agreements or protocols of cooperation with the private institutions of

social solidarity and others.

4-A creation and access to social services and equipment are promoted,

encouraged and supported by the State, involving, where possible, the partners

referred to in paragraph 6.

5-A The use of social services and equipment can be conditioned to the

payment of compartments by the respective recipients, taking into account the

their incomes and those of their respective households.

6-The development of social action is realized, within the framework of local intervention,

by the establishment of partnerships, specifically through the social network,

involving the participation and collaboration of the different bodies of the

central government, local authorities, public institutions and the

private institutions of social solidarity and other private institutions of

recognized public interest.

Article 32.

Private institutions of social solidarity

1-The State supports and values the private institutions of social solidarity and other

of recognized public interest, without a lucrative character, to pursue objectives

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of social solidarity.

2-Private institutions of social solidarity and others of recognized interest

public without a lucrative character, enshrined in Article 63 (5) of the Constitution,

are subject to mandatory registration.

3-The State exercises powers of surveillance and inspection on the institutions

individuals of social solidarity and others of recognized public interest without

lucrative character, which pursue goals of a social nature, in order to guarantee

the effective fulfillment of the respective legal and contractual obligations,

in particular of those resulting from the agreements or protocols of cooperation concluded

with the State.

Article 33.

From the initiatives of private individuals

The social services and equipment pursued by private entities with purposes

lucrative can benefit from incentives and benefits provided for in the law.

Article 34.

Licensing, inspection and surveillance

The services and equipment secured by private institutions and entities with or

not-for-profit require no prior licensing and are subject to inspection and

supervision of the state under the law.

Article 35.

Social responsibility of companies

The State stimulates and supports the initiatives of the companies that contribute to the

development of social policies, specifically through the creation of

equipment and social action services of maternity support and parenthood, à

childhood and old age and that contribute to a better reconciliation of personal life,

professional and family members of the household.

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Section III

Subsystem of solidarity

Article 36.

Objectives

1-The solidarity subsystem is intended to ensure, on the basis of solidarity of

the whole community, essential rights for the way to prevent and eradicate situations

of poverty and exclusion, as well as to guarantee benefits in situations of

proven personal or family need, not included in the previdential system.

2-The solidarity subsystem may cover also, in the terms to be defined by law,

situations of social or economic compensation by virtue of insufficiencies

contributors or prestationals of the previdential system.

Article 37.

Personal scope

1-The subsystem of solidarity covers national citizens, and may be made

extensive, under the conditions laid down in law, to non-nationals.

2-Access to benefits obeys the principles of social equity and differentiation

positive and should contribute to promoting the social insertion of people and families

beneficiary.

3-For the purposes set out in this Law, they shall be deemed not to be nationals of refugees,

stateless persons and foreigners not equated with national citizens by instruments

international social security.

Article 38.

Material scope

1-The solidarity subsystem covers the following eventualities:

a) Lack or insufficiency of economic resources of individuals and aggregates

family members for the satisfaction of their essential needs and for promotion

of their progressive social and professional insertion;

b) Invalidity;

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c) Old age;

d) Death; and

e) Insufficiency of the substitutive benefits of the incomes of the labour or the

contributory career of the beneficiary.

2-The solidarity subsystem further covers situations of absolute disability and

definitive of the beneficiaries of the previdential system, in the part necessary to cover the

insufficiency of the respective contributory career in relation to the corresponding value

of the disability pension.

3-The solidarity subsystem may still cover the charges arising from

decrease in revenue or increase in expenses, without specific contributory basis.

Article 39.

Schemes covered

The solidarity subsystem covers, specifically, the non-contributory scheme, the

special scheme for social security of agricultural activities, transitional arrangements or

other formally equated to non-contributors.

Article 40.

Conditions of access

1-A allocation of benefits of the solidarity subsystem depends on residence

in national territory and too much conditions fixed in the law.

2-A The law may, with regard to non-nationals, make access to the allocation conditional

of benefits of certain conditions, particularly of minimum periods of

legal residence or legally-equated situations.

3-A The provision of benefits does not depend on enrolment nor does it involve the payment of

contributions, being determined in relation to the resources of the beneficiary and his / her

family aggregate.

Article 41.

Benefits

1-A protection granted within the framework of the solidarity subsystem concretizes

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through the granting of the following benefits:

a) Social income benefits of insertion;

b) Social pensions;

c) Social allowance for unemployment;

d) Supportive complement for seniors;

e) Social complements; and

f) Other benefits or transfers allocated to specific purposes, in the frame

of the achievement of the objectives of the present subsystem.

2-Without prejudice to the provisions of paragraphs 1 and 3 of the preceding Article, the assignment of

social complements may not depend on the verification of the conditions of residence

and of resources, in the terms to be defined by law.

Article 42.

Amounts of benefits

1-The amounts of cash benefits of the solidarity subsystem are set

by law with the aim of guaranteeing the vital needs of the beneficiaries, in a manner

to ensure basic rights of citizenship.

2-The amounts of benefits referred to in the preceding paragraph may be set at

function of the income of the beneficiaries and the respective households,

as well as of their size, and may be modified as a result

of the change in those incomes, the composition and size of the household or

still from other legally anticipated factors.

Article 43.

Contractuation of the insert

The Act provides, in the context of the conditions for the allocation of the benefits of the subsystem of

solidarity, whenever this proves to be adjusted, the assumption on the part of the

beneficiaries, of a contrup-to-date commitment to insertion and its herd

compliance.

Section IV

Family protection subsystem

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Article 44.

Purpose

The family protection subsystem aims to ensure the compensation of charges

increased family members when the legally anticipated eventualities occur.

Article 45.

Personal scope

The family protection subsystem applies to the generality of the people.

Article 46.

Material scope

The family protection subsystem covers, inter alia, the following

eventualities:

a) Family charges;

b) Charges in the field of disability; and

c) Charges in the field of dependence.

Article 47.

Conditions of access

1-A The allocation of the benefits of the family protection subsystem depends on

residence on national territory and other conditions fixed in the law.

2-A The law may, with regard to non-nationals, make access to the allocation conditional

of benefits of certain conditions, particularly of minimum periods of

legal residence or legally-equated situations.

3-A The law may provide for special conditions of access in function of the eventualities to

protect.

4-The provisions of paragraph 1 shall be without prejudice to the application of the provisions of instruments

international social security.

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Article 48.

Benefits

1-A protection in the eventualities provided for in the scope of the protection subsystem

family concretizes themselves through the granting of pecuniary benefits.

2-A protection referred to in the preceding paragraph is likely to be extended, so

provide response to new social needs, specifically in the case of families

monopard, as well as to those that are specifically relevant to the fields of

disability and dependence.

3-A The law may provide for, with a view to ensuring better coverage of social risks, the

provision of benefits in kind.

4-The right to benefits of the family protection subsystem shall be without prejudice to

allocation of social action benefits referred to in paragraph c) of Article 30 para.

Article 49.

Amounts of benefits

The amounts of cash benefits to be allocated within the scope of the protection provided for in the

this section is established in the function of earnings, composition and

size of the households of the beneficiaries and, eventually, of the burden

supported, being modified under the terms and conditions to be fixed by law.

CHAPTER III

Previdential system

Article 50.

Objectives

The previdential system aims to ensure, based on a principle of basic solidarity

professional, pecuniary benefits substitutive for lost work income in

consequence of the verification of legally defined eventualities.

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Article 51.

Personal scope

1-They are compulsorily covered by the previdential system, in the quality of

beneficiaries, the workers on the account of others or legally equiped and the

independent workers.

2-People who do not exercise professional activity or who, by exercising it, are not,

by that fact, framed compulsorily in the terms of the previous number, may

adhere to the social protection set out in this Chapter, under the conditions laid down in the

law.

Article 52.

Material scope

1-A Social protection regulated in this Chapter integrates the following

eventualities:

a) Disease;

b) Maternity, paternity and adoption;

c) Unemployment;

d) Accidents at work and occupational diseases;

e) Invalidity;

f) Old age; and

g) Death.

2-The cast of the protected eventualities can be extended, depending on the

need to give coverage to new social risks, or reduced, in the terms and

legally foreseen conditions, depending on certain situations and categories

of beneficiaries.

Article 53.

Schemes covered

The previdential system covers the general social security regime applicable to the

generality of employees on account of outrain and self-employed workers,

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the special schemes, as well as the optional enrolment schemes covered by the n.

2 of Article 51 para.

Article 54.

Principle of contributivity

The previdential system must be fundamentally self-financed, having on the basis of a

direct synalagmatic relationship between the legal obligation to contribute and the right to

benefits.

Article 55.

Conditions of access

They are general conditions of access to social protection guaranteed by the system schemes

previdential the enrollment and fulfillment of the contributory obligation of the employees and,

where appropriate, from the respective employing entities.

Article 56.

Obligations of taxpayers

1-The beneficiaries and, in the case of exercise of subordinated professional activity, the

respective employer entities, are required to contribute to the schemes of

social security.

2-A The contributory obligation of the employing entities is with the beginning of the

exercise of the professional activity of employees at their service.

3-A The law defines the mode and conditions of realization of the contributory obligation and of the

too much taxpayer obligations in the face of the system.

4-A The law further establishes, in cases of non-compliance with the obligations of the

taxpayers, the regime of the respective officious supply by the services of the

social security.

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Article 57.

Determination of the amount of contributions

1-The amount of the employees ' contributions on account of others and the

contributions of the employing entities is determined by the application of the fees

legally provided for remuneration which, under the law, constitute the basis of

contributory incidence.

2-A The law sets out the criteria and conditions for the registration of remuneration by equivalence

to the entry of contributions, specifically as to the legal relevance, to the value to

record and the respective period of registration.

3-The contributory fees are fixed, actuarially, depending on the cost of protection

of the eventualities provided for, without prejudice to the possibility of suitability,

in particular in the reason of the nature of the contributing entities, of the situations

specific to beneficiaries or employment policies.

4-A law may provide for mechanisms of appropriateness of the contributory effort, warranted

by changing economic, social and demographic conditions, specifically

upon the conjugation of apportionment and capitalization techniques.

Article 58.

Contributory limits

1-A The law may still provide for, protecting the rights acquired and in formation and

ensuring the financial sustainability of the public component of the system of

apportionment and national public accounts and respect for the principle of

solidarity, the application of upper limits to the values considered as the basis

of contributory incidence or the reduction of the contributory rates of the general schemes,

with a view in particular to the strengthening of the savings of the managed employees

in financial regime of capitalization.

2-A The legal determination of the limits referred to in the preceding paragraph is based on

reasoned proposal in a report that demonstrates, in an unequivocal manner, the

fulfillment of the requirements mentioned in the preceding number and will

compulsorily preceded by assent of the executive board of the Council

National Social Security.

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Article 59.

Responsibility for the payment of the contributions

1-The employing entities are responsible for the payment of the contributions of the

workers at their service, and they are due for the effect to proceed, at the time of the

payment of the remunerations, to the withholding on the source of the corresponding values.

2-Are void the clauses of the contract, individual or collective, by which the worker

takes up the obligation to pay, in whole or in part, the contributions due by the

employing entity.

Article 60.

Coercive collection and prescribing of contributions

1-The contributions and unpaid contributions, as well as other amounts due,

are the subject of coercive collection in the legal terms.

2-A The obligation of the payment of the contributions and contributions prescreved on the deadline

of five years from the date on which that obligation should have been complied with.

3-A prescription interrupts itself by any administrative due diligence, carried out with

knowledge of the payment officer, conducive to settlement or the

collection of the debt.

Article 61.

Conditions for the allocation of benefits

1-Constitute general condition of allocation of benefits, in the eventualities in which

this is required, the course of a minimum contribution period or situation

equivalent.

2-The course of the period provided for in the preceding paragraph may be considered as

fulfilled by recourse to the totalization of contributory or equivalent periods,

registered in the framework of social, national or foreign protection schemes, in the

terms set out in the law or in applicable international instruments.

3-Can still be provided for by law, for each eventuality, special conditions of

access to benefits.

4-A lack of compliance with the obligation to sign up, including the lack of declaration of the

25

commencement of professional activity or the lack of payment of contributions relating to

periods of exercise of professional activity of the employees on account of

listen, which is not attributable to them, is without prejudice to the right to benefits.

Article 62.

Determination of the amounts of benefits

1-The value of the remuneration registered shall constitute the basis of calculation for the determination

of the amount of the substitutive pecuniary benefits of the income, real or

presumed, of professional activity.

2-Without prejudice to the provisions of the preceding paragraph, the determination of the amounts of

benefits may also take into account other elements, in particular and

depending on the cases, the nature of the eventuality, the duration of the contributory career,

the age of the beneficiary or the degree of disability.

3-Whenever the cash benefits of the social security schemes show

lower than the legally fixed minimum values is guaranteed to be granted that

value or the attribution of benefits that complement them.

4-The values of sickness and unemployment benefits may not be higher than the

values of the respective reference remunerations, net of taxes and of

contributions to social security, which served as a basis of calculation of the

benefits.

Article 63.

Legal framework of pensions

1-The legal framework of pensions should be, gradually, adapted to the new

social constraints, so as to ensure greater equity and social justice in the

its realization.

2-A The law may enshrine measures of flexibility of the legal age for assignment of

pensions, through mechanisms for reduction or bonification of pensions, depending on

whether to be of a lower age or higher than the one defined in the general terms.

3-A The law may provide for the positive differentiation of replacement rates in favour of the

beneficiaries with lower pay, as long as they respected the principle of

contributivity.

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4-The calculation of old-age and disability pensions is based on the incomes of

work, revalued, of the entire contributory career, in the terms of the law.

5-The values of remunerations that serve as a basis of calculation of pensions should be

updated in accordance with the criteria set out in the law, particularly having

into account the inflation.

Article 64.

Factor of sustainability

1-The amount of the statutory pension, calculated in the legal terms, is applicable

sustainability factor related to the evolution of the average life expectancy,

with a view to the suitability of the system to modifications resulting from changes

demographic and economic.

2-The sustainability factor is defined by the relationship between the average life expectancy

verified in a given year of reference and the average life expectancy that if

check in the year prior to that of the pension requirement.

Article 65.

Accumulation of pensions with income from work

The Act sets out the terms and conditions of accumulation of pensions with income

of work.

Article 66.

Rights acquired and in formation

1-It is applicable to the regimes of the previdential system the principle of the guardian of rights

acquired and the rights in formation.

2-For the effect of the preceding paragraph, consider:

a) Acquired rights, those already recognized or able to be able to

if they find meeting all the necessary legal requirements to their

recognition;

b) Rights in training, those corresponding to the contributory periods and values

of remuneration registered in the name of the beneficiary.

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3-The beneficiaries retain the right to the pecuniary benefits of the schemes of

social security yet transfirms the residence of the national territory, without

injury to the provisions of applicable international instruments.

4-The effects of enrollment do not go extinct by the course of time.

CHAPTER IV

Provisions common to the subsystems of solidarity and family protection and the

previdential system

Section I

Benefits

Article 67.

Accumulation of benefits

1-Unless otherwise legal provision, they are not cumulable among themselves the benefits

emerging from the same fact, provided that relating to the same protected interest.

2-The rules on accumulation of emerging pecuniary benefits from different

eventualities are regulated by law, and under no circumstances may result from your

application amount lower than that of the highest benefit nor excess on the value

total.

3-For the purpose of accumulation of pecuniary benefits can be taken into account

benefits provided by foreign social security systems, without prejudice

of the provisions of applicable international instruments.

Article 68.

Indexing of Social Apoials and updating of the value of benefits

1-The amounts of social supports, specifically the minimum pension values,

are fixed having on the basis of the Indexing of the Social Supports, in the terms defined by

law.

2-The reference value provided for in the preceding paragraph is the subject of annual update,

taking into account a set of an attentive criteria, specifically the evolution of

prices and economic growth.

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3-A annual update of benefits complies with objective criteria set by law

that guarantee respect for the principle of intergenerational equity and by

financial sustainability of the social security system.

Article 69.

Limitation of the right to benefits

The right to accrued pecuniary benefits shall prescribe in favour of the institutions

deveers within five years, counted from the date on which they are laid

the payment, with knowledge of the creditor.

Article 70.

Civil liability of third parties

In the case of competition for the same fact of the right to pecuniary benefits of the

social security schemes with the compensation to be borne by third parties, the

Social security institutions become subrogated in the rights of the aggrieved to the limit

of the value of the benefits it is up to them.

Section II

Guarantees and litigation

Article 71.

Duties of the State and the beneficiaries

1-Compete to the State to guarantee the beneficiaries periodic information concerning their

rights, acquired and in training, specifically in respect of pensions.

2-The beneficiaries have a duty to cooperate with the social security institutions,

by making them, in particular, to be truthful in their statements and requirements

and submit to the verification examinations necessary for the grant or

maintenance of the benefits to which they are entitled.

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Article 72.

Intransmissibility and partial penhorability of benefits

1-The benefits granted by the social security institutions are relatable.

2-The benefits of social security schemes are partially pencilable in the

terms of the general law.

Article 73.

Warranty of the right to information

The beneficiaries and the employing entities are entitled to appropriate information on

the rights and obligations arising from this Act and supplementary legislation.

Article 74.

Certification of regularity of situations

1-Any person or entity subject to obligations before the institutions of

social security may require, at any time, to be issued to you

supporting statement of the regular fulfillment of these obligations.

2-When not the supporting statement mentioned in the number is issued

previous, the particular may request the administrative courts to subpoenathe

Administration for passing of the corresponding certificate, in the legal terms.

Article 75.

Confidentiality

1-The social security institutions covered by this Law shall ensure the

confidentiality of data of a strictly private nature of which they have,

relating to the personal, economic or financial situation of any persons or

entities.

2-A obligation provided for in the preceding paragraph by permission of the respective

interested or whenever there is a legal obligation to disclose the data covered by the

confidentiality.

30

Article 76.

Complaints and complaints

1-Those interested in the provision of benefits of the system may submit

complaints or complaints whenever they consider themselves to be aggrieved in their rights.

2-Claims or complaints are addressed to the institutions to whom it is incumbent to grant the

benefits, without prejudice to the contentious guarantees recognized by law.

3-The process to appreciate complaints has a character of urgency.

Article 77.

Contentious guarantees

The actions and omissions of the Administration within the social security system are

susceptible to contentious reaction pursuant to the Code of Procedure in the Courts

Administrative.

Article 78.

Nullity

The administrative acts of assignment of rights or recognition of situations

legal, based on false information, premised dolefully or with bad faith by the

beneficiaries, are void and punished under the applicable law.

Article 79.

Revocation of invalid acts

1-The administrative acts of assignment of rights or payment of benefits

invalid are revoked under the terms and time limits provided for in the law, without prejudice to the

provisions of the following number.

2-Administrative acts for the allocation of invalid continuing benefits may,

surpassed the deadline of the general law, be repealed with effectiveness for the future.

31

Article 80.

Failure to comply with legal obligations

The lack of compliance with the legal obligations relating, specifically, to the enrollment in the

system, to the framework in the schemes and to the fulfilment of the contributory obligations,

as well as the adoption of procedures, by action or omission, aimed at obtaining

dismist of benefits, substantiate counter-ordinance or criminal wrongful, in the

terms defined by law.

CHAPTER V

Supplementary system

SECTION I

Composition of the supplementary system

Article 81.

Composition

1-The supplementary system comprises a public capitalisation scheme and schemes

complementary to collective initiative and individual initiative.

2-Supplementary Schemes are recognized as significant instruments of

protection and social solidarity, realized in the sharing of responsibilities

social, owing to their development being stimulated by the state through

incentives deemed appropriate.

SECTION II

Of the public capitalization regime

Article 82.

Characterization

1-The public capitalization regime is an individual voluntary adhesion regime, whose

organization and management is the responsibility of the State, which aims at the assignment of

complimentary benefits of those of the previdential system with a view to strengthening the

32

social protection of the beneficiaries.

2-In the realization of the provisions of Article 57 (4), they may be created by law, to

each adherent beneficiary, individual accounts managed in financial regime of

capitalization, which guarantees them a complementary social protection.

3-A The law defines the conditions of accession, the characteristics, the guarantee of rights, the

method of financing, the death-transmission regime and the tax treatment

of the accounts mentioned in the preceding paragraph.

4-A The law further defines the forms of management of individual accounts, specifically the

possibility of contractualization of management with private sector entities.

SECTION III

Collective and individual initiative schemes

Article 83.

Nature of collective initiative schemes

1-The complementary schemes of collective initiative are institution schemes

optional in favour of a determined group of people.

2-Integrate into the schemes referred to in the previous figures the occupational schemes

complementary.

3-The complementary professional schemes cover workers on account of

heard from a company, from groups of companies or from other entities

employers, as well as self-employed workers in a professional sector or

interprofessional.

4-The complementary professional schemes are financed by the entities

employing or by self-employed workers, without prejudice to the possible

payment of quotizations by employees on an account of others.

Article 84.

Nature of individual initiative schemes

Supplementary schemes of individual initiative are of optional institution,

taking on, among others, the form of savings plans-retirement, life insurance, of

capitalization insurance and mutualistic modalities.

33

Article 85.

Administration

1-The complementary schemes of collective and individual initiative may be

run by public, cooperative or private entities, particularly of

mutualistic nature, created for this purpose in the legal terms.

2-When, within the framework of a supplementary occupational scheme, it is concerned

allocation of benefits in the eventualities of invalidity, old age and death, the

respective management has to be granted the separate legal entity of the entity that the

instituted.

Article 86.

Regulation, supervision and guarantee of supplementary schemes

1-A creation and modification of the complementary schemes of collective initiative and

individual and its articulation with the previdential subsystem are defined by law

which regulates, in particular, its material scope, the technical conditions and

financial benefits and the guarantee of the respective rights.

2-A The regulation of supplementary schemes of collective initiative must still

realizing the principle of equal treatment on the grounds of sex and protection

legal of the rights acquired and in formation, and set the rules relating to

portability of those rights, to equal tax treatment between regimes and to the

right to information.

3-A regulation, prudential supervision and the surveillance of supplementary schemes

provided for in this section is exercised under the law and by the entities

legally defined.

4-A The law further provides for the institution of mechanisms for guarantee schemes

complimentary referred to in this section.

CHAPTER VI

Funding

34

Article 87.

Principles

The financing of the system obeys the principles of diversification of the sources of

funding and selective suitability.

Article 88.

Principle of diversification of sources of finance

The principle of diversification of funding sources implies the broadening of the bases

of obtaining financial resources with a view to, in particular, the reduction of

non-wage costs of the workforce.

Article 89.

Principle of selective suitability

The principle of selective suitability consists in the determination of the sources of

funding and the allocation of financial resources, according to nature and the

objectives of the social protection modalities defined in this Law and with situations

and special measures, particularly those related to active employment policies and

of vocational training.

Article 90.

Forms of financing

1-A guaranteed protection under the system of social protection of citizenship is

funded by transfers from the State Budget.

2-The substitutive benefits of the earnings of professional activity, awarded in the

scope of the previdential system and, as well as active employment policies and

vocational training, are financed by employee contributions and by

contributions from the employing entities.

3-Without prejudice to the provisions of the preceding paragraph, the national counterpart of the expenditure

financed within the framework of the European Social Fund, is supported by the Budget of the

State.

35

4-The administration expenses and other common expenses of the system are financed

through the sources corresponding to the systems of social protection of citizenship and

previdential, in the proportion of the respective charges.

5-Can further constitute revenue from the social action the monies laid down by law to

such effect, particularly those from social gaming revenues.

6-The provisions of this Article shall be governed by law.

Article 91.

Public capitalization of stabilization

1-Revert to the Social Security Financial Stabilization Fund an installment

between two and four percentage points of the percentage value corresponding to the

employees ' contributions on account of outrain, until that fund ensures the

coverage of foreseeable expenses with pensions, for a minimum period of two

years.

2-The annual balances of the previdential system, as well as the revenues resulting from the

inheritance of heritage and the gains gained from financial applications, integrate the

fund referred to in the previous number, being managed under capitalisation scheme.

3-There may be no place for the application of the provisions of paragraph 1, if the economic conjuncture of the

year to which it relates or the financial situation of the previdential system

justifiably not allow it.

Article 92.

Sources of funding

They constitute sources of financing of the system:

a) The contributions of workers;

b) The contributions of the employing entities;

c) The transfers of the State and other public entities;

d) The legally provided tax revenue;

e) The income of own heritage and the heritage incomes of the

State consigned to the reinforcement of the Financial Stabilization Fund of the

Social Security;

f) The product of comholdings provided for in the law or in regulations;

36

g) The product of financial penalties;

h) The transfers of foreign bodies;

i) The product of eventual surpluses of the implementation of the State Budget of

each year; and

j) Others legally provided for or permitted.

Article 93.

Social security budget

1-The social security budget is presented by the Government and approved by the

Assembly of the Republic as an integral part of the State Budget.

2-The rules of drafting, organization, approval, implementation and control of the budget

of social security are listed in Law No. 91/2001 of August 20, with the amendments

introduced by the Organic Law No. 2/2002 of August 28, Law No. 23/2003, of 2

of July and Law No 48/2004 of August 24.

3-The Government presents to the Assembly of the Republic a specification of the revenue and

of the expenditure on social security, broken down by the various modalities of

social protection, specifically by the eventualities covered by the systems

previdential and social protection of citizenship and respective subsystems.

4-The Government prepares and further sends to the Assembly of the Republic a projection

long-term, particularly of charges with deferred benefits and

of the employee's contributions and the contributions of the employing entities.

CHAPTER VII

Organization

Article 94.

Organic structure

1-A Organic structure of the system comprises services that are part of the

direct administration and indirect administration of the State.

2-The services to which the last part of the preceding paragraph are referred are legal persons

of public law, called institutions of social security.

37

Article 95.

National Social Security Council

1-A participation in the process of policy-making, objectives and priorities of the

system is secured by the National Social Security Council.

2-It shall be created, within the framework of the Council, an executive committee constituted of form

tripartide by representatives of the state, the union social partners and employers.

3-A The law determines the tasks, competences and composition of the Council and of the

executive committee, taking into account, as to the latter, the provisions of the provisions of paragraph 2 of the

article 58 para.

Article 96.

Participation in social security institutions

The law defines the forms of participation in the social security institutions of the

trade union and employer associations, as well as other interested entities in the

operation of the system.

Article 97.

Exemptions

1-Social security institutions enjoy the exemptions recognised by law to the

State.

2-The public funds of capitalization, specifically the Stabilization Fund

Social Security Finance, benefit from the exemptions provided for in the law.

Article 98.

System of information

1-A The management of the social security system is supported in a system of information of

national scope with the following objectives:

a) Ensure that benefits are in a timely manner granted to your

recipients;

b) To ensure the effectiveness of collecting contributions and combating fraud and

38

contributory avoidance, as well as prevent the undue payment of benefits;

c) Organizing national databases; and

d) Develop the procedures and channels that privilege the exchange and access of

information in electronic support, so as to promote debureaucratization and

the acceleration of the decision-making processes.

2-The social security system promotes, where necessary, the articulation of the

data bases of the different interdepartmental areas, with a view to simplifying the

relationship of the people with the Public Administration and improve their effectiveness.

Article 99.

Identification

1-Are subject to identification in the information system the natural persons and

collective that relate to the social security system.

2-A declaration of commencement of activity for tax purposes is officiously communicated

to the social security system.

CHAPTER VIII

Transitional provisions

Article 100.

Safeguarding of rights acquired and in formation

The development and regulation of this Law shall not prejudice the rights

purchased, the warranty deadlines accrued under the previous legislation, nor the

quantitative pensions that result from remuneration registered in the duration of that

legislation.

Article 101.

Transitional arrangements for calculating pensions

Without prejudice to the provisions of Article 63 (4), it shall be made relevant, in the calculation of the

pensions and with respect for the principle of proportionality, the periods of the career

contributory complied with previous legislation, as well as the rules of

39

determination of the pensions then beholdant, when applicable to the situation of the beneficiary.

Article 102.

Socio-professional groups

The Act sets out the terms in which the integration into the previdential system of the

workers and their employing entities for that partially covered.

Article 103.

Special regimes

Special schemes prevailing at the date of the entry into force of this Law shall continue to

to apply, including the provisions on their functioning, to groups of

workers by the same covered, with respect for the rights acquired and in

formation.

Article 104.

Regimes of public function

The convergence of the regimes of the public function with the regimes of the

social security system.

Article 105.

Financing of the social protection system of citizenship

The law sets out the terms of the transition to the form of financing of the system of

social protection of citizenship provided for in Article 90 (1).

Article 106.

Application to provident institutions

They remain autonomous the provident institutions created previously at the entrance to

vigour of Decree-Law No. 549/77 of December 31 with its legal regimes and

forms of custodial management, by becoming subsidised subject to the provisions of the

40

present law and the legislation of it arising, with the necessary adaptations.

CHAPTER IX

Final provisions

Article 107.

Protection in accidents at work

The law establishes the legal regime for compulsory protection in the event of an accident of

work, defining the terms of the respective responsibility.

Article 108.

Autonomous Regions

The application of this Law to the Autonomous Regions of the Azores and Madeira does not

undermines own regulation in organisation and operation, well

as the regionalization of social security services.

Article 109.

Abrogation standard

1-It is repealed Law No 32/2002 of December 20.

2-Until express revocation, the legal and regulatory provisions remain in force

approved under the Laws No 28/84 of August 14, para. 17/2000, of 8 of

August and paragraph 32/2002, of December 20.

Article 110.

Entry into force and production of effects

1-A This Law shall come into force on the day following that of its publication.

2-The provisions of Article 68 shall take effect as of January 1, 2007.

Seen and approved in Council of Ministers of October 12, 2006

41

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs