Key Benefits:
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PROPOSED LAW NO. 136 /X
Exhibition of Motives
In the Agreement on Social Security Reform subscribed on October 10, 2006,
the Government and the Social Partners have assumed that the reform measures approved in the
scope of that Agreement, namely the sustainability factor, would be applied
in a framework of convergence between the various social protection regimes, in respect
by the spirit of Law No 60/2005 of December 29.
The convergence of the General Box regime of Retirements with the general regime of the
social security was started in 1993, with the application to the subscriptors enrolled in the
CGA as of September 1 of that year of the rules for calculating the pension scheme of the scheme
general, and met a strong boost in 2005, with the elimination of numerous regimes
special, the enrolment of the officials and agents of the Public Administration admitted to
departure from January 1, 2006 on social security and a profound alteration of the
conditions of retirement and the calculation formula of pensions.
The movement of approximation of the public sector pension system to that of the sector
private enters now into a new phase, of progressive stabilization of its rules, by
one side, and of sharing innovative concepts with the general regime, designed for
better to enable you to respond to the demographic challenges and to strengthen sustainability
financial of your system, on the other.
The value of retirement pensions thus undergoes being influenced by the application of
a factor of sustainability, which aims to translate the impact of the evolution of longevity
on the financing of the system, staying, concurrent and temporarily, limited to
a maximum roof whenever it is not possible to ensure that there is a
correspondence between the contributory effort carried out by the underwriter during his
career and the amount of pension to be allocated.
A new pension value bonus scheme is created and introduces a
amendment to the early retirement penalty regime, as a function of the moment
of the retiree.
A special treatment for the retired retirees is still provided for, in
function of the degree of disability that is recognized to them, to obtain any means
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of subsistence resulting from the exercise of any profession or work, through a
reduced warranty period, of the non-application, in certain circumstances, of the factor
of sustainability and equiparation, exclusively for minimum pension effect, to the
pensioners with a full career.
Define, finally, the rules to which will be in the future subordinate the regime of
update of pensions.
The procedures stemming from Law No. 23/98 of May 26 were observed.
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:
Article 1.
Calculation of pensions
Article 5 of Law No 60/2005 of December 29 is replaced by the following:
" Article 5.
Calculation of the retirement pension
1-A retirement pension of the underwriters of the General Box of
Retirees entered until August 31, 1993, with the denomination
from P , results from the multiplication of the sustainability factor
corresponding to the year of the retirement by the sum of the following
plots:
a) The first instalment, designated by P1 , corresponding to the time of
service provided until December 31, 2005, is calculated on the basis of
in the following formula:
R x T1 / C
where:
R is the relevant monthly remuneration in the terms of the Statute
of the Aposentation, deducted from the percentage of the quota for
effects of retirement and survivor pension, with
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a maximum limit corresponding to 12 times the indexing
of social supports (IAS);
T1 is the expression in years of the number of months of service
provided until December 31, 2005, with the limit
maximum of C ; and
C is the constant number in Annex II;
b) The second, with the designation of P2 , concerning the time of service
later than December 31, 2005, is fixed according to the
articles 29 to 32 of the Decree-Law No. .../2007, de ... de ......, without
minimum or maximum limits, based on the following formula:
RR x T2 x N
where:
RR is the reference remuneration, ascertained from the
higher annual remuneration recorded from
January 1, 2006 corresponding to the time of
service required for, summed up to the registered up to 31 of
December 2005, perdoing the limit of Annex II;
T2 is the annual rate of formation of the given pension of
agreement with Articles 29 to 31 of the Decree-Law
n. .../2007, de ... of ......;
N is the number of calendar years with contributory density
equal to or more than 120 days with pay registration
completed as of January 1, 2006, to,
soms to the years recorded until December 31 of
2005, perdoing the limit of Annex II.
2-The sustainability factor corresponding to the year of the retirement is
fixed, based on the data published annually by the Institute
National of Statistics, in the following terms:
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EMV2006 / EMVanoi-1
where:
EMV2006 is the average life expectancy at 65 years
verified in 2006;
EMVanoi-1 is the average life expectancy at 65 years
verified in the year prior to the retirement.
3-For effect of the provisions of the preceding paragraphs, it shall be deemed to be the year
of the retirement the one in which the fact or act occurs
determinant referred to in Article 43 of the Status of Afpostion.
4-[ Previous Article No 2 ]. "
Article 2.
Determinant act
Articles 39 and 43 of the Retirement Status, approved by the Decree-Law n.
498/72, of December 9, with the drafting of the Decree-Law No. 191-A/79 of 25 of
June, they shall be replaced by the following:
" Article 39.
Voluntary retirement
1-[...].
2-[...].
3-[...].
4-The applicant may not give up his / her application for retirement after
delivered dispatcher to recognize the right to voluntary retirement that
it does not depend on incapacity or verified the facts to be
refer to the points b) a d) of Article 43 (1)
Article 43.
Scheme of the retiming
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1-[...]:
a) Be received by the General Box of Retirees the request for
voluntary retirement that does not depend on verification of
disability;
b) [...];
c) [...];
d) [...].
2-[...].
3-[...]. "
Article 3.
General absolute disability
1-A allocation and calculation of retiree pensions awarded on the grounds of
permanent and absolute disability for all and any profession or work have
the following specialties:
a) A warranty term of 3 years;
b) A minimum value equal to the minimum pension guaranteed in the general scheme of the
social security corresponding to the time of service of Annex I; and
c) Non-application of the sustainability factor until the pensioner reaches the
age of 65 years, time when the pension is changed, through the
multiplication of the value it has on that date by the sustainability factor
corresponding to that year.
2-A amendment provided for in the c) of the preceding paragraph does not apply to pensioners
that, by the date on which they are completed 65 years of age, they have received pension from
Retirement awarded on the grounds of general absolute disability by a
period of more than 20 years.
Article 4.
Reduction of the early retirement pension
1-The value of the early retirement pension, calculated in the general terms, is
reduced by the application of a reduction factor determined by the formula 1- x , in
that x is equal to the overall rate of reduction of the pension value.
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2-A The overall rate of reduction is the product of the monthly rate of 0.5% for the number of months
of early ascertained anticipation between the age of the person concerned at the time of the act
determinant referred to in Article 43 of the Status of Aposentation and the 65-year-old.
3-The number of months of anticipation to be considered for the determination of the overall rate
of reduced pension is reduced by 12 months for each 2-year period that the
effective service time exceeds 40 years.
Article 5.
Amount of the bonified pension
1-Without prejudice to the provisions of paragraph 4, the retirement pension awarded to underwriters
of the General Box of Retirements with the age and time of service of Annex II is
calculated in the general terms and bonified by the application of the factor defined in the
the following number.
2-The bonus factor is determined by the formula 1 + y , in which y is equal to the rate
global de bonification.
3-A global rate of rebate is the product of the monthly rate of Annex III, depending on the
time of service at the time of the determinant act referred to in Article 43 of the
Status of the Aposentation, by the number of months established between the date on which
they have checked the conditions of access to the retirement on the grounds of Article 37 of the
Status of the Act, as amended by Article 3 of Law No 60/2005, of 29 of
December, and that determinant act, with the limit of 70 years.
4-Without prejudice to the provisions of the preceding paragraph, the pension of the underwriters who may
retiring in advance without reduction of pension on the grounds of the article
37.-A of the Status of Aposentation, combined with Article 4 of Law No. 60/2005,
of December 29, and, as of 2015, also with paragraph 3 of the previous article, and
choose not to do so is bonified by the application of the resulting global rate
product of a monthly fee of 0.65% for the number of months ascertained between the date
where the conditions for access to early retirement have been checked without reduction
under that scheme and the date of the determinant act of retirement, up to the limit
of the age of Annex II.
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5-For the purpose of clearance of the bonus rates referred to in the figures
previous, reliefs only the months of effective exercise of later functions to the
entry into force of this Law.
6-The amount of the bonified pension cannot, under any circumstances, be higher
to 90% of the last monthly remuneration of the underwriter.
Article 6.
Update of pensions
1-Pension, retirement and disability pensions are updated annually, the
from the second year following that of its allocation, with effect from day 1 of
January of each year, depending on its amount, in accordance with Annex IV,
in regard to the value of the IAS and the following reference indicators:
a) The real growth of gross domestic product (GDP) corresponding to the average of the
rate of the average annual growth of the last two years, ended in the
third quarter of the year prior to the one to which the update or in the
immediately preceding quarter, if the one is not available at the date of 10
of December;
b) The average variation of the last 12 months of the Consumer Price Index
(IPC), without housing, available on November 30 of the year before that a
reporting the update.
2-For the purposes of the provisions of the preceding paragraph, the annual variation of GDP is the one that
runs between the fourth quarter of one year and the third quarter of the following year.
3-Transitally, in the year 2008, the real GDP growth, provided for in the a)
of paragraph 1, corresponds only to the year ended in the 3 th quarter of the year
previous to the one to which the update is reported.
4-The terms of the update of pensions according to the previous figures are
defined in the porterie of the Minister of Finance.
5-A The application of the rules set out in paragraph 1 shall not prejudice the principle of
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budgetary stability set out in Article 84 of Law No. 91/2001, 20 of
August, amended and Republicated by Law No. 48/2004 of August 24.
6-Pension, retirement and disability pensions fixed on the basis of formula of
calculation prior to the one introduced by this Law upstream of more than 12 times the
IAS are not the subject of updating until their value is exceeded by that
limit.
Article 7.
Safeguarding of rights
1-Pensions that are being abated at the date of entry into force of this Law
do not suffer any reduction in their value.
2-A limitation in the calculation of the first instalment of the pension at 12 times the IAS and the rule of
non-updating of the pensions of higher value than that amount do not apply to the
underwriters or pensioners if, from the application of the rules laid down in paragraph b) of the n.
1 of Article 5 of Law No. 60/2005 of December 29, in which RR is ascertained from
of the remuneration later than 1993 and N considers the whole career
contributor, result value higher than the threshold.
3-A The limitation in the calculation and the sustainability factor introduced by Article 1 of the
present law shall not apply to the pensions assigned to anyone who has already met conditions
for passage to retirement or retirement previously at its entry into force.
4-The provisions of this Law shall not apply to underwriters or pensioners whose
pension rights, guaranteed through pension funds, have been transferred to the
General Box of Retirements, together with the necessary provisions for
support the corresponding charges.
Article 8.
Entry into force
The scheme laid down in this Law shall take effect from the January 1 of
2008, with the following exceptions:
a) The Early Pension Reduction Scheme, which applies from 1 of
January 2015;
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b) The scheme for updating pensions of more than 1.5 IAS and lower or
equal to 6 IAS, which applies as of January 1, 2009;
c) The scheme for updating pensions of more than 6 IAS, which applies
as of January 1, 2011, without prejudice to the provisions of paragraph 6 of the article
5.
Seen and approved in Council of Ministers of March 22, 2007
The Prime Minister
The Minister of the Presidency
The Minister of Parliamentary Affairs
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Annex I
[referred to in para. b) of Article 3 (1))
Year service time
(years)
2008 and 2009 15 a 20 years
2010 and 2011 21 a 30 years
From 2012 to 40 years
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Annex II
[referred to in Article 5 (1)]
Year Age Time of service
2008 to 61 years and 6 months 36 years
2009 to 62 years 36 years
2010 to 62 years and 6 months 36 years
2011 to 63 years 36 years
2012 to 63 years and 6 months 36 years
2013 to 64 years 36 years
2014 to 64 years and 6 months 36 years
From 2015 to 65 years 15 years
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Annex III
[referred to in Article 5 (3)]
Time of service
(in years)
Monthly bonus rate
(percentage)
15 a 24 0.33
25 a 34 0.50
35 a 39 0.65
Higher than 39 to 1.00
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Annex IV
[referred to in Article 6 (1)]
Value of pension
<= 1.5 IAS> 1.5 IAS and
<= 6 IAS> 6 IAS
C re
sc im
en to
r ea
l d the P
IB
<2% IPC-0.5% IPC-0.75%
=> 2% and
<3%
IPC + 20% of the
growth
real GDP
(minimum IPC +
0.5%)
CPI IPC-0.25%
=> 3%
IPC + 20% of the
growth
real GDP
IPC + 12.5% of the
growth
real GDP
IPC