Key Benefits:
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
1
PL 316/2013
2013.09.12
Exhibition of Motives
1. Economic Framework
For decades Portugal has lived with levels of unsustainable public deficits. Since 1974,
the Country has seen itself compelled to apply for foreign aid on three occasions by emergency situation
financial.
The last ransom demand took place in the context of the crisis of the sovereign debts of the area of the
euro. The rules for participation in the euro have been identified from the beginning, but the
necessary adjustment was permanently deferred and the rules were not effectively
applied. After the global financial crisis, the imbalances of the Member States more
vulnerable accentuated and the fragilities of the construction of the single currency were exposed.
The euro area countries were forced to adjust abruptly. Portugal had a
of the biggest challenges ahead. Since the mid-90, it has benefited from the conditions
more favorable financial, but deferred the fulfillment of their responsibilities while
participant in the euro area. The limit of 3% of Gross Domestic Product (GDP) for the deficit
budget has never been met, resulting in very high levels of public debt.
More still, excessive borrowing has not been restricted to the public sector: also the
households and companies have accumulated debt and also Portugal has accumulated a high debt
face to the outside. This behaviour has resulted in economic stagnation, increase in
unemployment and loss of competitiveness.
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
2
In 2009-2010, the budget expansion policy came to amplify these problems
structural, which were already evident. Once again, public spending has increased to
respond to problems of the immediate, without considering the consequences on sustainability
of the public debt and the stability of the financial system. Budget deficits were
successively reviewed and approximate the double digits, putting Portugal in a
situation of great vulnerability, at a time of high tension in Europe. The
lenders began to doubt Portugal's ability to pay off debt and the state had
increasingly difficult to finance themselves in the market. In April 2011, the bancarroute was
imminent. The lack of money to pay salaries, pensions and ensure the functions of the state
as a whole was a real threat. The call for international aid was uncircumvable and the
adjustment proved unavoidable, notably in the face of conditionality associated with
official funding.
The Economic and Financial Adjustment Program (PAEF) provides for an acting in three
fronts: fiscal consolidation and the placement of public finances on a trajectory
sustainable; reducing the levels of indebtedness and recovery of financial stability;
structural transformation directed at increased competitiveness, promotion of the
sustained economic growth and job creation. It is thus addressed to the main
challenges of the Portuguese economy. More still, official loans allow to protect the
financing of the economy from the pressures of the markets. In this way, Portugal has time
to adjust gradually and to gain credibility and trust at the international level.
If this protection did not exist, the adjustment would have to occur in any way, but it would be
even more abrupt.
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
3
The accumulation of chronic deficits of our public accounts is due to insufficiency
of the revenue to cover the costs of the state. Thus, a structural response is required,
there are two possible solutions: either if they increase the revenues or if it reduces the expense. The
increase in revenue is a pathway that, admittedly, has more protracted impacts
on economic activity and causes periods of low growth and unemployment.
Additionally, the level of taxation achieved in Portugal is already very high. Of agreement
with estimates from the European Commission, between 2010 and 2013, Portugal records the second
greater addition of the tax burden in the European Union (EU), after France, with an extra
of 2.3% of GDP (1.9% for the euro area average and 1.7% for the EU), essentially via
direct taxes that registered an addition of 2.2%. (1.2% in the euro area and 0.9% in the
EU). A further increase in taxes would have excessive economic and social costs
of behaving.
At the same time, Portugal presents a disproportionate level of public spending in the face of
to their wealth: in 2013, total public expenditure (48.6% of GDP) will be close to the average of the
EU (49.2% of GDP), but the wealth produced per capita will be only 60% of the average
european (€ 15 to 600.00 in Portugal and € 25 to 700.00 in the EU). Portugal has today a level of
excessive expenditure that, as they prove persistent deficits, fails to finance. The
creation of future sustainability bases of public finances passes like this
necessarily by a lower expense level than the current one. As advocated in the
PAEF, the way of reducing the expense is the solution that allows to reach, simultaneously, three
objectives: to comply with the international commitments to reduce the budget deficit;
minimise the costs to be borne by the economy and create the conditions of sustainability
future of public finances and the pension system. It was in this framework that Portugal if
committed to a significant expense reduction in the coming years. The reform of the
State by the track of the permanent reduction of expenditure is a key pillar of the
budgetary adjustment to be made.
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
4
In this connection, it matters to have present the structure of Portuguese public expenditure, in
particular the fact that approximately 70% of the total spending is applied in expenditure
with staff and social benefits. It becomes thus clear that a reduction of the expense to
levels compatible with the wealth of the Country inevitably have to affect these areas. This
reality does not invalidate substantial reductions in areas with lower weight. In effect, the
reduction of state operating expenses is a priority that has been followed up
year after year, as shown by the expenditure on intermediate consumes in 2012. However,
too severe a reduction in these expenditts may cause the operation of the
essential services to populations. A public expenditure reduction program must, by
this, be balanced and develop on several fronts simultaneously.
For this reason, the Government has decided to frame the expenditure reduction effort in a
broader program of state reform. It was chosen as a strategic principle
advisor the pursuit of equity goals:
1. Equity between workers in the public and private sector;
2. Equity between generations;
3. Equity between public services and private actors.
Thus, three integrated acting fronts arise: expenditure on staff, social benefits
and setorial measures. Only the acting simultaneously in these three vectors offers guarantees of
a sustained reduction in the levels of public spending. Only then will it be possible to adapt the
services and benefits of the state to what the population wants and has the capacity to pay.
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
5
Compliance with the PAEF requirements has already given visible results, not only in terms
of international credibility, as also in terms of the recovery of activity
internal economic. After 10 consecutive quarters of contraction in economic activity,
in the 2 th quarter of 2013, the GDP grew in real terms 1.1% in the face of the previous quarter.
For this has contributed a less sharp break down of Private Consumer and Investment,
retaining the positive contribution of Net External Search. The generality of data
more recent, whether qualitative or quantitative, suggests the continuation of an evolution
favorable economic activity in the 3 th quarter of this year. This recovery of the activity
economic, still mild, matters to be strengthened and sustained so as to safeguard the
correction of structural imbalances.
Also the ratio of government debt as a percentage of GDP is denoting yet a
increasing trend (reaching the 118.4% net of deposits of the Central Administration),
as the correction of the budget deficits already observed is still insufficient for
invert the trajectory of public debt.
In a scenario of very moderate economic growth in the medium term, the reduction of
net borrowing of the economy, and of the Public Administrations in particular, is only
possible through the accumulation of current account surpluses and capital and balances
positive primary budget, respectively. This means that the effort of
adjustment that the Portuguese economy has been carrying out has to be sustained in the
time, with high private and public savings rates that allow to finance the
investment, growth engine.
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
6
Also to ensure the financing of the economy in a stable and regular manner after the exit
of PAEF is crucial for this growth. In 2014, funding in the framework of the
Program accounts for about half of the total funding needs of the
State and the remainder is to be secured under market conditions. Only
pursuing the adjustment effort credibly and sustaining, could Portugal
get the necessary funding in these conditions.
From the point of view of public accounts, as already mentioned, the correction should be made
essentially through permanent reductions in public spending. It is important to highlight
that the implementation of the measures of the State reform was a condition for the approval of the
extension of maturities of the loans granted to Portugal by the EU. The pursuit
of these objectives and the implementation of the agreed measures will continue to be a condition for the
our partners continue to support Portugal, as they have done so far. Incidentally, hesitations
in this field, as shown by other countries in adjustment, show that the
consequences in the short term are much worse. It is therefore a determinant that Portugal take
the necessary and indispensable measures to ensure the sustainability of your finances
public and the pension system.
Public finance crises have a gravy economic and financial impact, obliging
to taking measures that inevitably have as cost a break down of activity and a
increase in unemployment, with the inherent social costs. It is therefore imperative to take
measures to prevent the repetition of these episodes for Portuguese society. The prevention
of the budgetary crises requires as soon as they develop robust budgetary rules, such as
the ones advocated in the Budget Framework Act, which transposes to the planning
legal national the European commitments made by Portugal in the sense of
maintenance of financial discipline. This Act provides for the principle of sustainability,
according to which the budgetary rules should apply to all subsectors of the
Public administrations, understanding for sustainability the ability to finance
all commitments, assumed or to take up, with respect to the rule of the balance
structural budget and the limit of public debt, as provided for in that Act and in the
European legislation.
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
7
Portugal is subject to the rules of budgetary discipline of the Stability Pact and
Growth, provided for in the Treaty on the Functioning of the European Union and revised in the
Regulation (EU) No 1175/2011, of the European Parliament and of the Council, of 16 of
november 2011, amending Regulation (EC) No 1466/97 on the reinforcement of the
supervision of budgetary situations and supervision and coordination of policies
economic. This Regulation elects as a medium-term budgetary objective a balance
balanced or surplus, with, in the case of Portugal, this midterm goal
corresponds to a structural budget balance of not less than -0.5% of GDP.
On March 2, 2012, Portugal, together with 24 other Member States, signed the
Treaty on Stability, Coordination and Governance in the Economic and Monetary Union,
recognizing expressly that the need for governments to maintain finances
sound and sustainable public and to avoid excessive budget deficits is determinant
to preserve the stability of the whole euro area and, consequently, requires the
introduction of specific rules, including a budget balance rule and a
automatic mechanism for the adoption of corrective measures. Additionally, when the
relation between public debt and GDP exceeds the reference value of 60%, as succeeding
also in Portugal, that excess value (which runs presently the 60 points
percentage), should be reduced to an average rate of one twentieth per year as a standard of
reference.
The entry into force of two new European regulations in May 2013 came to strengthen
monitoring procedures for the participating Member States of the area of
euro at two levels: i) the definition of monitoring and evaluation mechanisms of the
budget programmes and correction of excessive deficit situations, complementing the
provisions of the Stability and Growth Pact; and ii) the reinforcement of supervision
budgetary and economic in situation or risk of financial instability. This means that,
in the current context, not only the provisions of correction of budgetary imbalances if
have been strengthened, as also, and above all, the provisions in the strand of
monitoring and prevention of new imbalances are found to be significantly
heightened.
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
8
2. The sustainability of the public pension system
Historically coexist in Portugal two major social protection regimes in matter
of pensions in the eventualities of old age, invalidity and death: on the one hand, the system
previdential of the general social security regime, intended for the generality of the
workers in the private sector and public sector workers with legal relationship of
private employment; and, on the other hand, the regime of the General Box of Retirements (Box),
currently designated as a convergent social protection regime, intended for employees
public and administrative agents, currently workers in public functions.
Both regimes are, in essence, public, as they have been instituted, are managed and
guaranteed financially by the state, they fall into the 1 th pillar of social protection, this
is, they ensure the degree of protection with substitutive benefits of labour income,
and have a legal nature, given that their configuration is shaped unilateral and imperatively
by the legislator, amusement of what succeeding in the supplementary schemes and in the savings
individual, who have a conventional or contractual source.
Both the previdential system of the general regime and the social protection regime
convergent are managed in apportionment system, which means that pensions in
payment are supported by the current contributions of the workers and employers and,
when these reveal themselves insufficient, which admits that it should only occur in
conjunctural situations, by a contribution of the State, arising from taxes and, in
contexts of fiscal imbalance, by recourse to indebtedness.
This model of funding, which does not ensure the coverage of the responsibilities of the
rights in formation through the constitution of provisions, as succeeding in the regimes
managed in system of capitalization, underlies a principle of solidarity between
generations, assuming that the generation in the asset supports the payment of the pensions of the generation
retirees or retired.
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
9
The sustainability of this model, in which no one funds with its contributory effort
your own pension, depends on the evolution, by uncertain nature, when designed the long
deadline, of various factors, from the logo of the will to maintain the regime's configuration in the
future, but fundamentally of the ability of the neighboring generations to assume the
charges with the pensions of previous generations taxpayers.
In effect, the long-term sustainability of a public pension scheme rested, by a
side, in the social and political realization of the community that it is materially fair, by
observe elementary imperfections of proportional equality among the various groups of
citizens, and equitable, by proportionally distributing the benefits and burdens between
all users of the pension scheme, and that, as such, it should continue to exist in the
same molds, and, on the other hand, in its capacity for self-financing, without prejudice
of the supply by the State of conjunctural financial imbalances, with recourse to other
sources of revenue, located at a later time to the pension system.
The latter situation should, however, be biased marginal and temporary. In the
true, a pension system based on a logic of apportionment shall, throughout its
life, evolve in the sense of seeking to ensure its financial sustainability in a way
permanent, approaching at all time the value of the contributions it receives from the value
of the benefits it pays.
2.1. Proportional equality
The Cash regime is a special pension scheme, ainjurling its fairness and justice
material relative necessarily by the comparison of its carateristics with the
contemporaries defined by the same legislator for the general regime, intended
tendentially to all workers who do not integrate that first regime, and by the
verification whether the differences of conditions find reasonable and sufficient justification.
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
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To the extent that they are in cause of lifetime benefits, which are paid for a period
very extended temporal, the comparison between regimes has to be done in a perspetive
historical, at least equivalent to the time it is today established as
corresponding to a full career, that is, the maximum service time that can
reliefs on pension, as there remain in actuality pensions fixed with conditions and formulas
of calculation that have vigored in all of that period.
Thus, if we retreat 40 years, until 1973, we check that in the Box for the generality of the
subscribers of this institution-for within the Box itself always coexisted with the
"general" regime of the Status of Posting Numerous more favorable special regimes in
various fields, such as the conditions of retirement or retirement and the rules of calculation and
or of updating the pension-, the maximum pension, equal to the last monthly remuneration of the
employee deducted from the percentage of the quota for the Box, required 60 years of age and 40
years of service.
At the same time, between 1963 and mid-1983, the maximum pension to which taxpayers
of the general scheme could get corresponded to 80% of the base salary, depending on that pension
from 65 years of age and 40 years of work.
Between the middle of 1977 and the end of 2003, the generality of the subscriptioners of the Inbox subscribed
by August 31, 1993 he passed on to be able to retire with a pension equal to the last
illiquid quota remuneration, that is, to receive a higher pension in 10% à
remuneration that would earn if they continued to work, basing for such counting 60 years of
age and 36 years of service.
In practice, however, on the grounds of the Decree-Law No. 116/85 of April 19, during
nearly two decades, between 1985 and 2003, only 36 years of service were required, which
allowed early retirement without penalties and with pension corresponding to 100%
of the ill-fated remuneration to entire generations of employees under 60 years of
age, in many cases with rather less than this age, given the additions of
service time that allowed to quickly reach the service time corresponding to the
full career.
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
11
In the same period, the taxpayers of the general social security scheme with 40 years of
service and 65 years of age could receive, at most, 80% of the reference remuneration,
remuneration this one that corresponded, between mid-1983 and the end of 1993, to the monthly average
of all unrevalued career compensation and, between 1994 and the end of 2001, to the
average monthly remunerative of the calendar years with higher reprized remunerations
of the last 15 years of career.
In 2004 and 2005, the pension of the generality of the underwriters of the Cash returned to correspond
to the last monthly net share of quota for retirement and survivor pension,
that is, to equate to 90% of that remuneration, by maintaining the 60-year requirements of
age and 36 years of service, but passing the early retirement to be penalized in
4.5% for each year or fray in missing the underwriter to reach the age of 60.
Since 2006, the retirement of the generality of the underwriters of the Cash has gone on to demand
conditions in age and time of service in gradual convergence to the
established in the general scheme, convergence completed already in 2013, and the pension of the enrolled
by August 31, 1993 passed the result of the sum of two plots, one ascertained with the
rules of the adapted Affiliation Status, regarding time of service up to 31 of
december 2005, and the other calculated in accordance with the rules of the general regime, concerning the
later service time.
In the general social security regime, between 2002 and mid-2007, to taxpayers
enrolled until December 31, 2001 has secured the highest pension of three formulas
alternatives:
a) The old one, which had as a maximum limit 80% of the monthly remunerative average of the
10 calendar years with the highest pay of the last 15 years of career;
b) The new one, which had an annual rate of formation of the variable pension and which ascertained the
reference remuneration from the monthly average of the remunerations of the whole
reprized career; and
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
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c) The proportional, which attributed the pension values first determined of
agreement with the previous formulas in the proportion of the service time provided
up to 2001 (value resulting from the old formula) to be divided by the total career time
and of the service time provided from 2002 onwards (value resulting from the formula
new) also to be divided by the total career time;
whereas the taxpayers enrolled after 2001 only were entitled to the formula
new.
In the general regime of social security, since mid-2007, taxpayers have passed the
be divided into three groups:
a) Those enrolled until 2001 who are to retire by 2016, who are entitled to the
best of two formulas: the new and the proportional, being that at this last the limit
relevant time for allocation of the old pension and the new pension is situated in
2006 and 2007;
b) Those enrolled until 2001 who are to retire after 2016, who are entitled to
best of two formulas: the new and the proportional, being that at this last the limit
relevant time for allocation of the old pension and the new pension is situated in
2001 and 2002; and
c) Those enrolled after 2001, who continued to be entitled only to the new formula.
Thus, it has to be concluded to have existed, over time, an important disparity
between the Cash regime and the general social security regime, in any case always
greater than 10% of the monthly value of pensions, this even by scoring:
a) The most favorable special schemes within the Box itself, which covered a
very substantial part of its universe of underwriters, greater than one-third of the
total;
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
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b) The excecional conditions of retirement or retirement, which shortened the career
contributor in several years-more than five, for entire generations of pensioners
of the Box-and widened to the same extent the duration of the pension.
This is even confirmed by numerous simulations carried out with type situations
representative of large part of the total retirement universe of the Box, whose pensions,
if calculated according to each of the regimes successively in force in the regime of
converged social protection applied by the Box in 2000, 2005 and 2010, present,
relatively to the result of the historically more favorable formula of the general regime of
social security, which vigored between 1993 and 2001, a difference, for more, of at least
10% (the difference, in some cases, is even substantially higher than that, arriving
even to surpass the 30%).
That disparity, as you referred to, has always existed in the scope of the Box itself. By
one side, the subscriptors entered until August 31, 1993 maintained the rules of calculation
of the Status of Retirement, While Those Enrolled subsequently were applied for
rules of the general regime of social security. On the other hand, many of the underwriters
belonging to that first group benefit, or have benefited in the past, from regimes
special more advantageous than the one set out in the said Statute, finding
some of these schemes referred to in Decree-Law No. 229/2005 of December 29. The
said disparity results also from the different rate of pension formation and, above all,
of the way to determine the reference remuneration to which that fee applies.
In effect, it is very different to consider last remunerations or old remunerations
revalued, as the former are generally the highest of the entire career, by
correspond to the highest category or job title played by the underwriter,
considering the typical situation of gradual ascension in the career, profile that is, too, with
rare exceptions, that of the taxpayers of the general social security scheme.
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
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To this conclusion does not preclude even the existing rule in the general regime of social security, in
matter of contributory density, which is sufficient with 120 days of contributions per calendar year
to account for a full year, as it releases only in seat of rate of
formation of the pension, not affecting the reference remuneration considered in the calculation of the
pension.
The current formula for calculating the pension of Law No. 60/2005 of December 29, despite
represent an important development with respect to the initial formula of the Statute of the
Retiming, presents, still, concretely with respect to the share of the relative pension
to the time of service prior to 2006, which is ascertained from the old formula of the Statute
of the adapted Aposentation, a disparity with that of the general social security regime.
That disparity is already dampened but still far from being completely eliminated, a
time that the clearance of reference remuneration in the general scheme from an average
of perceived remunerations in a very extended period substantially reduces the value
of this and thus indirectly from the replacement rate itself, translated by the percentage of
coverage of the last remuneration earned by the first pension obtained.
2.2. Equity
Solidarity between generations cannot fail to be bidirectional, from active workers
to with pensioners, but equally from these to those, not being able to
reasonably demand for the first a disproportionate effort for what are the
its capabilities and for what will predictably be the benefits that will reap the
future of the system, this even admitting that the new rules will not be also target
of change in an unfavorable sense in the future.
Adding that there is also a huge disproportion between what is the level of
Pensions of the Box and the contributory effort carried out by its beneficiaries, which, recalls-
if, they contributed to retirement and survivor's pension with a percentage of their
remuneration from 7% until 1984, from 8% between 1985 and 1993, from 10% between 1994 and 2010 and from
11% since 2011.
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
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That reality is unambiguously proven by a simple theoretical exercise with the
following assumptions, grossly generous:
a) Shares discounted by the worker during a full career of 36 years;
b) Employer's constant contribution of 23.75% during the same period
(it is noted that in the general social security regime, based on the disaggregation of the
global contributory rate for the eventualities old age, disability and death-those
Box assures-, would compete for employers a lower real rate, from only
16.4%);
c) Capitalization, together with the interest successively generated by that capital, das
shares of the underwriter and employer's contributions at a net rate of 4%
to the year (technical rate accepted in the actuarial studies);
d) Channeling of the totality of the accumulated capital (including the part concerning the
quotas and contributions to survivor's pension) to finance
exclusively the retirement pension;
of which it results that the funding thus generated would only give to pay for the pensions of the
underwriter for about nine years, when a retiree receives, on average, pension
for 18.1 years and then still leaves to the heirs a survivor's pension of about
of half of the retirement pension.
From this exercise it also results evident not to have any adherence to reality the idea that
it would be the fact that the employers of the underwriters of the Box did not contribute
historically with a percentage of the remunerations of its equivalent employees
to the existing in the general scheme to be responsible for the structural imbalance of the regime of
converged social protection.
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
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2.3. Self-financing
The Cash regime suffers from a structural financial imbalance that is attributable to the
conjugation of multiple factors:
Legislative Policy Ones, related to:
a) The proliferation of special regimes, some of them in which the expectable time of
payment of the pension arrives to overcome, several times, the contributory career;
b) The restrictions on the admission of new workers in the Public Administration and the
remunerative policy measures that have been being adopted in recent years;
c) Convergence measures, such as the closure of the Cash regime to new underwriters-
although this one is responsible, at most, for only about 400 million a
current annual deficit of 4.36 thousand million (estimated total deficit of the Box for the
Current year 2013, which will have to be covered by Budget transfers
General of the State).
Others of a demographic nature, such as:
a) The ageing of the population of underwriters, which reflects the ripening of the
regimen;
b) The increase in average life expectancy.
Others still of an economic-financial nature, such as the wage reduction that affects the
generality of the underwriters of the Box and which leads to a decline in contributions.
In 20 years of convergence, from 1993 a to 2013, and despite the important structural measures
realized, the cost with pensions rose from 1,681 million to 9,253 million
euro (2013), the same is to say from 2.31% to a value of never less than 5.5% of GDP,
passing the number of retirees and retirees from about 203,000 to more than 468,000
and the average pension from € 538.42 to € 1 282.58.
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
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In the same period, the annual financing needs of the Box from the
State budget has gone up from 765 billion, at a time when only the
local authorities and the autonomous regions contributed as employers and with only
8% of the wage mass, to 4.36 billion euros, when all employers
contribute with 20% of the wage mass, and the active / retired underwriters ratio has declined
dangerously from 3.56 to 1.13.
The level of self-financing of benefits paid by the Cashier (retiming pensions and
survival assigned) by contributions received from workers and entities
employing public stands, in 2013, just above 40%, the rest being almost
60% (more than triple the actual contributory rate of the employer in the general security regime
social for the eventualities old age, disability and death) covered by transfers from the
Budget of the State, i.e. by taxes or by recourse to indebtedness.
Even admitting that all new employees recruited by the Public Administration
since the closure of the Cash regime on January 1, 2006 had been, still, enrolled in the
Box (admitting 100,000 new workers, for excess), in 2013, year in which all
the employers contribute already with 20% of the salary mass of their staff, the capacity of
self-financing of the social protection regime secured by the Cashier would only know
an addition of about 400 million euros, which would keep it still at a lower level
50%.
The predictable evolution of the critical factors for structural financial sustainability of the
Box points in the direction of continued degradation of the situation, at a time when
structural fiscal imbalances of the State, related international linkagings
with these same imbalances and the economic situation of the Country do not allow to continue,
as up to here, to annually increase the value of the contribution to the Box. The annual deficit
of the Box will amount to 2.6% of GDP, with increasing trend, situation that appears
unsustainable, for the reasons exposed in 1 ..
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
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3. Convergence
The question of whether the disparity signaled in 2.1. -which initially discriminated against
positively civil servants in the face of private sector workers, then
public servants in the face of private sector and public sector workers with relationship
private employment legal and, more recently, public servants admitted until 31
from August 1993 in the face of all remaining workers and staff-respects
basic principles of proportional equality, that is, whether it has substantive foundation
enough, it was being repeatedly answered negatively by the legislator, who since the
first half of the 80's come by imposing the convergence of regimes.
The convergence of regimes, the better, the convergence of the Cash regime to the general regime
of social security, without any guarantee of safeguarding discriminatory situations, is
a principle long stated in the legal order in its own headquarters, specifically in the
more important legislative instruments in the field of pensions, such as balizing
expectations and signalling a sense of the future evolution of the Cash pension system.
In fact, the convergence between the two public pension schemes appears in the laws of
foundations of social security some three decades ago, initially having as a horizon to
creation of a new single regime, different from those two, most recently with the
objective stated to apply to the users of the Box the rules of the general regime.
3.1. Levels
Of the three theoretically possible levels of convergence:
a) Amendment of the rules only for future underwriters (1. level);
b) Changing the rules for future underwriters and for current
underwriters / future beneficiaries (2. level); and
c) Amendment of the rules for future underwriters, for current
underwriters / future beneficiaries and for current beneficiaries (3. level);
CHAIR OF THE COUNCIL OF MINISTERS
Proposal for Law No. 171 /XII/2.
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was initially chosen the first, which seemed to respond appropriately to the
principles of proportional equality and equity, which constituted at the time the
main concern, so much so that they continued to multiply, for the
subscribers entered until August 31, 1993, the exception schemes, some only
eliminated with the Decree-Law No. 229/2005 of December 29.
In 1993, public debt was 54.6% of GDP, and it was in this context that, in that year,
it was decided to go on to apply to the new civil servants, that is, to those who were
admitted as of September 1, 1993, the rules for calculating the pension of the general scheme
of social security (the same figurine would come to be adopted in the reform of the general regime of
2002).
On that occasion, the underwriters of the Cashier enrolled until August 31, 1993 was allowed
the maintenance of the regime of which they historically benefited, however, may not, however,
option of the legislator to interpret itself as the guarantee of the future immutability of the rules that
they were applicable to them, for that one of the matrix carateries of the Cashier's regime, inscribed
in Article 43 of the Status of Representation, it was that the legal regime and the de facto situation
considering in the retirement was the one to check on the date of the propping up of the dispatch that
recognize the right and fix the value of the pension.
The decision, temporally dated, to impute the burden of adjustment in exclusive to whom
had not yet entered into the system, early revealed limitations, when the imbalance
structural of the Cash regime and the situation of public finances have changed substantially
the circumstances in which it had been taken.
As of 2000, GDP stagnated, registering up to 2007 percent average growth of 1.1% percent, and the
public debt increased from 50.7% to 68.3% of GDP between 2000 and 2007.
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Proposal for Law No. 171 /XII/2.
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It was decided, then, in the face of the new context-that it put financial sustainability
on the same level of importance with equality and equity as driving forces of the
convergence effort-, call out the underwriters of the Box that are not yet reuned
conditions to benefit from the rights enshrined in its regime to participate in the effort of
rebalancing the system (the same figurine would come to be adopted in the reform of the general regime of
2007), what succeeded, for several times, with governments sustained by different
majorities and political parties, between 2004 and 2013, stands out:
2004 The reduction of the pension from the Box from 100% to 90% of the last remuneration
monthly of the underwriter, thus eliminating the incomprehensible situation of the employee
retired to receive more of a pension than they have realized of salary;
2006 On:
a) The closure of the Cashier's regime, which is no more than able to enroll new underwriters,
being the new civil servants, hired as of January 1 from
2006, compulsorily enrolled in the general social security scheme;
b) The gradual convergence of the general regime of the Box to the general regime in matter
of conditions of retirement-from 60 to 65 years, at the pace of six months per year
-and of service time corresponding to a full career-from 36 to 40
years, also at the pace of six months per year;
c) The elimination or adaptation of several dozen special retiming schemes and
of reform of the Box, more favorable than the regime of the Statute of the
Retirement, applied by the Box to the generality of its underwriters;
d) The instantaneous convergence of the pension calculation formula of the "general regime"
of the Box, through the crystallization of a first instalment of the pension, ascertained with
basis in the old rules adapted to the time of service provided in its duration-
by December 31, 2005-, and of automatic prescribing of the rules of the general scheme
for application to career later than 2005.
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Proposal for Law No. 171 /XII/2.
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2008, following the reform of the general regime of 2007 and by import of the new
rules of this:
a) Application to pensions allocated from 2008 of the sustainability factor
established for the general regime, ascertained in the light of the evolution of hope
average life at the age of 65;
b) Amendment of the early retirement scheme, which went on to depend on 30
years of service at 55 years of age;
c) Pension bonus required after the employee meets all the requirements
for retirement;
d) Differential update of pensions, depending on the value of those, according to
inflation and real GDP growth.
In 2010, also for future pensions, the first instalment of the pension of the Box,
on the time of service provided up to 2005, no longer per reference 90% of the
last monthly remuneration to pass to correspond to 90% of the last remuneration of
2005 reprized under the general social security regime, based on inflation,
and the early pension went on to be penalized in 0.5% for each month or fray in short
to the underwriter to attain the legal age, to the similarity of what succeeding in the general regime.
2011, For the pensions to be allocated, the first instalment of the pension of the Cash, concerning the
service time provided until 2005, passed from 90% to 89% of the last remuneration of
2005 reprized, as a result of the 10% rise to 11% of the shares of the
subscribers.
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Proposal for Law No. 171 /XII/2.
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2013 On:
a) Sudden convergence-for the still not required pensions-of the general schemes and
special from the Box for the general social security regime in respect of
retiming and retirement conditions-65 years of age and 15 years of service
for the generality of the underwriters of the Box and 60 years of age and time of
variable service for the special regimes of the military and elements of the forces of
security lato sensu ;
b) Broadening of the base of contributory incidence relevant to the calculation of the
second instalment of pension, as of 2013, considering all remunerations
effectively self-injured, as established in the Regimes Code
Contributors to the Social Security Forecast System, independently
of respect or not to the office by which the underwriter is found to be registered in the
Box;
c) Revaluation of remuneration to be considered in the calculation of the first instalment of the
pension, i.e., of the earnings earned up to 2005, based on the evolution of the
index 100 of the salary scale of the general regime careers of civil service-in
the detriment of inflation-, by better adhering to the remunerative reality
specific of the public function.
In spite of this, the situation has not stopped worsening, adding to the structural imbalance of the
Box one of the largest financial and economic crises on a global scale since the Great
Depression, which made collapsing economies and provoked a severe and yet unsurpassed
crisis of sovereign debts, which prevented several states, including Portugal, from se
finance in the debt market by the normal mechanisms, obliging them to resort to
international emergency assistance, granted under very demanding conditions.
As of 2008, public debt has increased from 71.7% to 123.6% of GDP between 2008 and
2012. Meanwhile, the Cash regime reached the unsustainability situation described in
2.3.
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Proposal for Law No. 171 /XII/2.
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For the first time, the state faced the imminence of the bancarroute situation without
possibility of resorting to monetary policy instruments. Thus, they changed from
substantial and irremediable form the circumstances in which it had founded the decision to
circumscribe at 2. level the participation of Box users in the indispensable effort to their
viabilization.
The correction of the structural imbalance of the Box, which, by its size and evolution,
objectively threatens the already difficult financial situation of the state, requires, in effect, measures
energetic and structural, unprecedented in Portugal in the most recent years, but
suitable and proportionate to the seriousness of the problems facing the Country.
It cannot, from this made, the adjustment be effected only for the pensions to be calculated in the
future-which only by itself would postpone the beginning of the effects in about two years, given the volume
of applications, to which the legislation of 2012, pending instruction in the Box is still applicable-
because, as the experiment demonstrates, the total expenditure would continue to increase in shape
accelerated only by the effect of the increase in the number of pensions.
3.2. Solution
The only solution-inevitably consensual, because dictated, in a state of need,
for reasons of elementary pragmatism, without ideological biases or background options
on a new social security model-goes through to deepen convergence in a
double size: at the level of the revenue, through the increase in the rate of the contribution of the
employers to the existing value in the general social security scheme (23.75%), which
is expected to happen already in 2014, and on the expenditure side, through the structural reduction of the level
of expenditure on pensions.
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Proposal for Law No. 171 /XII/2.
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3.2.1. Revenue
At the level of the revenue, there are no viable alternatives to the increase in the rate of the contribution of the
employer. The rate of employee contributions is already found in the 11%, which is the rate
of the general scheme, in addition to which these workers-who will not benefit from the same scheme
of retirement-retire, at least five years later and will have a pension
lower than that of the already retired employees. Support still presently wage cuts
that diminish their ability to withstand the required effort.
The maintenance of the State's degree of contribution to the Box meets the strong constraints
previously referred to, only being possible:
a) If you significantly increased the tax burden, which you already find at a plateau
admittedly high, with injury to economic growth and to
job creation, in a chain effect that would not stop repertoire
negatively on all citizens; or
b) If the state succeed, to bear this expense, to finance itself externally, the
which would add to the country's debt levels already very high,
being, incidtionally, the ability to cut structurally expenditure justly an
of the most relevant factors to ensure access to external financing by the
normal channels.
3.2.2. Expense
At the level of the reduction of expenditure, it saw that the PAEF privileges, the most equitable solution and
viable undergoes by changing the calculation formula of the share of the pension of the underwriters of the Box
enrolled until August 31, 1993 concerning the time of service provided up to 2005 and reduce
or recalculate the pension or first instalment of the pension of retirees by way of
approach it-which still only partially succeeding-of the value that would result from the
rules applied in the general scheme and the Cash to underwriters registered since September 1
of 1993.
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Proposal for Law No. 171 /XII/2.
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Changing the formula only for the future would mean that no positive effect on the
sustainability would be felt in the short and the medium term. The configuration of the expense
also strongly limits the ability of the legislator to define levels of exemption for the
reductions and recalculations without compromising the usefulness of the measure.
3.3. Measures
The present proposed law deepens convergence, for new pensioners, as
has always succeeded in the past and how they impose principles of material justice and equity there are
much championed by the legislator, but equally to the current pensioners, by the same
reasons but also, essentially, by financial sustainability imperatives whose
gravity and premence cannot fail to prevail, at least provisionally, on
the expectations of those affected, however, preserving the already produced effects of the situations to
change, which are only modified for the future.
In the current context of economic and financial emergency of the state, there are no conditions
materials to, for more time, continue to circumscribe the burden of unsustainability
financial from the system to future beneficiaries. The current and future beneficiaries of this
system-which are the main stakeholders in their financial sustainability-must,
everyone, without exception, to the extent of your possibilities, participate in this effort, in the certainty
that whatever comes to it in the future will not leave to everyone for equal affect,
inevitably to a greater extent than the sacrifices that are now requests.
Thus, the effort asked to the current pensioners is essential to safeguarding their own
expectations, which can only be adequately protected in a context of
sustainability of the pension system to which they belong. Such an effort, surely well
understood in the framework of solidarity between generations, is the best guarantee that
also the neighboring generations of those currently retirees will be able to dispose, yet, of
a minimum degree of autonomy in the definition of the future.
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Proposal for Law No. 171 /XII/2.
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The imperative of deepening convergence goes by:
Shall Consider in the calculation of the first instalment of the pension of the Cash, relative to the time of
service provided until 2005, 80%, instead of the current 89%, of the last remuneration of 2005
revalued in the terms of the index 100 of the salary scale of the general regime careers of the
public function, definitively replacing the traditional criterion of the Cash regime
-net or illiquid remuneration of the percentage of the quota for the Box-by
traditional overall rate of pension formation of the general scheme-2% annual rate of
training for each of the 40 years of work.
The non-existence of record of record of remunerations with respect to the underwriters of the
Cash enrolled by August 31, 1993 Infeasible the immediate total convergence of
regimes, in so far as it does not allow to apply the calculation formula of the general scheme that
apura the reference remuneration from the monthly remunerative average of the whole
career.
To Replace the exhaustive regulation in own legislation of the social protection regime
convergent of the conditions of retirement, specifically legal age of access to the
pension, and the discipline of the sustainability factor, by dynamic remissions to the
legislation of the general regime in those domains, thus avoiding the need for future
legislative changes in duplicate;
Eliminate Eliminate, for the benefits to be allocated in the future, the possibility of a retiree or
restrained that you find yourself legally performing public duties choose to receive the
pension at the expense of remuneration, for considering who work should
compulsorily earn the counterpart of the service it provides and not a provision by
substitutive nature of income from work. There are, however, the current regimes
special functions of the exercise of public functions by retirees, without prejudice to the
interested to have to choose between receiving a third of the pension and the totality of the
pay or realize one-third of the remuneration and the totality of the pension;
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Proposal for Law No. 171 /XII/2.
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To Improve the regime of accumulation of pensions and remitting capitals of nature
Indemnity awarded as a result of accidents at work or diseases
professionals without any real impact on the overall earning capacity and earnings
with earnings from work and retirement pensions or retirement;
To Reduce immediately by 10% or to recalculate the first instalment of the pensions of
retirement and retirement in payment on January 1, 2014 of monthly value
higher than € 600.00 in whose fixation has intervening old formula of the Box regime
-which gave the vast majority of pensions the value of 100% of the last monthly remuneration
-, without prejudice:
a) Of the pensions and pension plots fixed in accordance with the standards applicable to the
calculation of pensions of beneficiaries of the general social security scheme, das
pensions automatically updated by partial indexing to the remuneration of
workers in the asset (from the beginning already 10% below the pensions previously
referred to) and the pensions for extraordinary retirement or disability of the disabled
of the Armed Forces, which are not altered;
b) Of the pensions of retirees aged 75 and above, who are
free from reduction / recalculation depending on that age, that is, the minimum threshold
overall exemption from € 600.00 climbs € 150.00 out of five in five years from the 75
years of age of the pensioner;
c) The reduction / recalculation becomes subject to the resolute condition of economic capacity
of the Country and the financial balance of the State allow to reverse those measures,
injured by the cumulative check of the following conditions in two years
consecutive: GDP has an annual nominal growth equal to or greater than 3% and
the budget balance is close to the balance, not less than 0.5% of GDP.
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Proposal for Law No. 171 /XII/2.
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● Apply to survivors ' pensions-benefits of a contributory nature attributed to the
heirlooms of the retirees and retirees of the Box, regardless of the situation
economic of who receives them, which correspond, as a rule, to half of the monthly value
of the pension of the deceased and which are freely accumulatable with all types of
income, particularly earnings from work and retirement pensions or
reform-the same regime of reduction and recalculation established for pensions
retirement and retirement, with the necessary adaptations, notably establishing
exemption limits not less than once the indexing of social supports (IAS);
To Repeal all standards that establish service time additions with effects to
from 2014, without prejudice to the application of those accruals to the time provided until
2013;
Making to depend on the right to benefits of the Box on the grounds of disability of the
confirmation of this inability by the medical board of the Box, without prejudice to the
competences of the custodial joints of the Services for all internal management matters
of human resources that do not impact themselves financially in the Box.
3.4. Effects
The present proposal of law, safeguarding the essential core of the right to a pension,
operates a relative rebalancing between the required effort and the benefits assigned to the
past and current workers and current and future pensioners, seeking to realize
the solidarity between generations that cannot have unique sense, particularly in the current
context of financial emergency of the State.
In the strictly financial plan, it seeks to staunch the degradation of the chronicle situation
unsustainability of the Cash regime, which achieves at this time a gravity without
precedents, through measures that globally represent, as of 2014, per year,
about 1,070 billion or 0.65% of GDP (the Cash deficit is reduced by 2.6%
to, still, about 2% percent of GDP), being:
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Proposal for Law No. 171 /XII/2.
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a) From around 720 million euros the reduction in expenditure on pensions (the reduction
of the pensions and the recalculation of the first instalment of the pensions in allowance saves the
State about 680 million euros in retirement pensions, reform and
disability and approximately EUR 40 million in survivors ' pensions);
b) From around 350 million euros the increase in revenue resulting from the climb to
23.75% of the rate of the contribution of employers.
The effects of the change, for the future, of the calculation formula of the first instalment of the pension
of the subscriptors of the Cashier entered until August 31, 1993 will only be felt by the deadline,
at the rate to which pensions are being assigned on the basis of these new rules, waiting-
if, however, that they also come to have a significant impact on the correction of the trajectory
of unsustainability of the pension system secured by the Box
The set of the measures proposed in this proposed law appears to be essential to
repose of the public pension system on a path of future financial viability,
guaranteeing, thereby, the expectations of current and vindors recipients of benefits
secured by the Box.
4. Conclusion
From a perspetive of legislative policy, the now proposed law takes over as a measure
Incrementer of the Social Rule of Law, as a model of state adopted in the
Constitution of the Portuguese Republic.
It is assumed to be this measure as the implementer of the Social Rule of Law, as soon as the
pursue a strengthening of the principles of equality and justice to the model
coexistential, when, safeguarding the essential core of the right to a pension, operates
a relative rebalancing between the effort required and the benefits assigned to workers
past and present and to current and future pensioners, seeking to realize solidarity
between generations that can't have unique sense, particularly in the current context of
financial emergency of the State.
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Proposal for Law No. 171 /XII/2.
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It is in this framework, and from the implementer vocation of the principles of equality and of the
material justice, which must have-if present that the Constitution does not impose or even suggest
any separation between the social protection regime applicable to workers who
exercise public functions and the regime applicable to the universe of the remaining workers, such
as it does not impose any positive discrimination in favour of one of those universes.
In fact, and just as the Constitutional Court has repeatedly said, despite the fact that
result from the constitutional text the incumbent for the State to organize, coordinate and
subsidize a unified and decentralized social security system-paragraph 2 of Article 63 para.
of the Constitution of the Portuguese Republic-, the field of the right to social security is
also a field of social fundamental rights, which, by nature and physiognomy
constitutional, are not immune to the possibility of free legislative conformation, in addition to that
depend on the existence of financial resources to be effective.
On the contrary, it is to the ordinary legislator that it is up to, in the first line, to define the solutions that
understand more suitable for giving fulfilment to the constitutional commands to which if
finds adstrite-in the face of the circumstances and constraints of each moment-, the
that, within the framework of social security systems, led first to a separation of
regimes and, since 1993-albeit more sharply since 2005-, has led to a
significant effort towards a greater convergence between the same, proven
that is the situation of inequality that nowadays caraterizes the two regimes.
But the implementer vocation of the Social State of Law that caraterizes the present
proposed law revels, outrossim, in particular respect for the fundamental rights of the
citizens, while legal positions of defence in the face of public powers, which animates the
conception of the normative correspondent, to which he presided over the elementary consciousness that the
freedom or margin of innovation referred to above, however broad they may be
borders, it cannot naturally be exercised at all costs. In that sense, the present
proposed law enshrines, as mentioned earlier, a set of solutions that,
putting in evidence interests and tendentially conflicting constitutional values, not
they find obstacles under the point of view of their constitutional compliance.
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Proposal for Law No. 171 /XII/2.
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Since soon and in the matter of the protection of trust it concerns, we use, in addition
of the fact that the convergence of regimes, the better, the convergence of the Cash regime to the
general social security regime, without any guarantee of safeguarding situations
discriminatory, be, as seen, a principle long affirmed in the legal order in
seat of its own, specifically in the most important legislative instruments in the field
of the pensions, such as by balizing expetative and signaling the sense of future evolution of the
Cash Pension system. Such convergence between the two public pension schemes
stated in the laws of bases of social security some three decades ago-initially having
as a horizon the creation of a new single regime, different from those two, more
recently with the stated aim of applying to the users of the Box the rules of the regime
general-, constituting peaceful understanding of the Constitutional Court that in
matter of succession of laws, a norm will be unconstitutional if it results from it an idea of
arbitrariness or excessive onerousness, which will happen whenever the change in the order
legal resulting from that standard is not reasonably foreseeable for your recipient and the
same be disproportional.
Going precisely to the meeting of this concern, the present proposed law comes to associate
changes in pension amounts to criteria or indicators of trust, which
not only guarantee the fairness and fairness of the solutions that comes to enshrine but,
essentially, strongly mitigate their impact on the lives of the respected recipients,
sidelining an excessive or disproportionate dimension that the same could
behave.
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Proposal for Law No. 171 /XII/2.
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They are three the aforementioned criteria of trust: safeguarding minimum values, which allows
subtract from the universe of application of this proposed law the beneficiaries of pensions
whose value is understood to be indispensable to ensure minimum subsistence conditions,
thereby defending the essential nucleus of the minimum existence inherent in respect for the
dignity of the human person, protected constitutionally through the prohibition of
social backlash; protection by age, which aims to mitigate the reductions in amounts
of pensions depending on the evolution of the age of the pensioner, taking into consideration the
need to accrate the situation of older beneficiaries, at a time when already
it is not possible to make a readjustment of your life circumstances; and indexing a
objective economic indicators, which guarantees not only the non-defintivity of the
measures that now approve of but, and above all, the expectation of its possible reversibility
in the future as soon as economic conditioners allow it.
Through these mechanisms, they thus strongly protect expectations and the
investment of trust made by the beneficiaries as to the amount of their pensions,
safeguard yourself, from the same step, the constitutive freedom and the self-reproofing that
characterize the autonomy of the legislative function.
And it is equally through the same mechanisms as, from the point of view of the ban on
excess or rule of the subjection of the ablative interventions of the legal positions of the
particular to the minimum necessary, also they coexistential to a rule of law
worthy of that qualification, whether it can assert the containment of these measures at a minimum
necessary to ensure the very subsistence of the public social security system,
proved that it was, such as the above, the suitability of the content of the present proposal
of law as a response to the challenges of economic, financial, demographic, and the
own principles that this system faces in actuality.
The procedures stemming from Law No. 23/98 of May 26 were observed.
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Proposal for Law No. 171 /XII/2.
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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.
Object
1-A present law establishes mechanisms of convergence of the social protection regime of the
public function with the general regime of social security.
2-A present law also proceeds:
a) To the fourth amendment to Law No. 60/2005 of December 29, amended by the Laws
n. paragraphs 52/2007, of August 31, 11/2008, of February 20, and 66-B/2012, of 31 of
December, which establishes mechanisms of convergence of the protection regime
social function of the civil service with the general social security regime with respect to the
conditions of retirement and calculation of pensions;
b) To the third amendment to Decree-Law No. 503/99 of November 20, amended by the
Laws No 59/2008, of September 11, and 64-A/2008 of December 31, which
approves the new legal regime for accidents in service and diseases
professionals in the framework of the Public Administration;
c) To the amendment of the Decree-Law No. 498/72 of December 9 approving the Statute
of the Aposentation.
3-A present law further repeals the standards setting up service time additions
for purposes of retirement under the General Box of Retirements (CGA).
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Proposal for Law No. 171 /XII/2.
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Article 2.
Amendment to Law No. 60/2005 of December 29
Article 5 of Law No. 60/2005 of December 29, amended by Laws No 52/2007, of 31
of August, 11/2008, of February 20, and 66-B/2012, of December 31, passes to
next essay:
" Article 5.
[...]
1-[...]:
a) The first instalment, designated "P1", corresponding to the time of
service provided until December 31, 2005, is calculated on the basis of
following formula:
R x T1 / 40
where:
R is 80% of the relevant monthly remuneration pursuant to the Statute of the
Retiming, with a maximum limit corresponding to 12 times the value
of the indexing of social supports (IAS), perceived until December 31 of
2005; and
T1 is the expression in years of the number of months of service provided up to
December 31, 2005, with the maximum limit of 40 years;
b) [...].
2-A General Box of Retirees applies the sustainability factor
corresponding to the year of the retiming according to the regime which
successively invigorate for the sustainability factor of the pensions of
old age of the previdential system of the general social security regime.
3-[...].
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Proposal for Law No. 171 /XII/2.
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4-[...].
5-[...]. "
Article 3.
Addition to Law No. 60/2005 of December 29
It is added to Law No. 60/2005 of December 29, as amended by the Laws 52/2007, of 31 of
August, 11/2008, of February 20, and 66-B/2012, of December 31, Article 3, com
the following essay:
" Article 3.
Conditions of ordinary retirement
They may retire the underwriters who contest the warranty period and the age
normal of access to old age pension that successively are
established in the previdential system of the general social security regime. "
Article 4.
Amendment to Decree-Law No 498/72 of December 9
Articles 78 and 79 of the Status of Retirement, Approved by Decree Law No. 498/72,
of December 9, they go on to have the following essay:
" Article 78.
[...]
1-The retirees, retirees, reservists out of effectivity and equiped
you may not exercise public functions for any services of the
central, regional and municipal administration, public enterprises, entities
public business, entities that integrate the regional business sector and
municipal and too many public collective people, except when there is law
special to allow it or when, for reasons of public interest
excecional, be authorized by the members of the Government responsible
by the areas of finance and the Public Administration.
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Proposal for Law No. 171 /XII/2.
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2-[...]:
a) Retirees and retirees who have retired or restrained
on the grounds of disability;
b) Retirees and retirees by force of application of the penalty
discipline of retirement or compulsive retirement.
3-[...]:
a) All types of activity and services, regardless of your
duration, regularity and, when onerous, form of remuneration;
b) [...].
4-[...].
5-[...].
6-[ Revoked ].
7-[...].
Article 79.
Suspension of pension
1-In the period that lases the exercise of the public functions authorized the
retirees, retirees, reservists out of effectivity and equiped no
receive pension or pay for reservation or equate.
2-Cessant the exercise of public functions, the payment of pension or
booking or equating remuneration, with updated value in the terms
general, is resumed.
3-[...].
4-[...].
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Proposal for Law No. 171 /XII/2.
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5-[...]. "
Article 5.
Amendment to Decree-Law No 503/99 of November 20
Article 41 of the Decree-Law No. 503/99 of November 20, amended by the Law
n ° 59/2008 of September 11 and by the Law No. 64-A/2008 of December 31, passes
next essay:
" Article 41.
[...]
1-[...]:
a) With remuneration corresponding to the exercise of the same activity,
in case of absolute permanent disability resulting from accident or
occupational disease;
b) With the share of the remuneration corresponding to the percentage of
permanent reduction of the employee's overall earning capacity, in
case of partial permanent disability resulting from accident or
occupational disease;
c) [ Previous point b )].
2-The default of the provisions of the preceding paragraph determines the loss of the
periodic benefits corresponding to the period of the exercise of the activity,
without prejudice to the review of the degree of disability pursuant to the present
diploma.
3-Are accumulatable, without prejudice to the rules of accumulation of the
respects mandatory social protection schemes, periodic benefits
by permanent disability with the pension or retirement pension
and the pension for death with the survivor's pension, in the part where these
exceed those.
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4-The provisions of the preceding paragraphs apply, with the necessary
adaptations, to compensation in capital, the value of which is limited to the share
of the periodic provision to remand that there was to be paid in accordance with the
rules of accumulation of this article. "
Article 6.
Amendment to Decree-Law No 137/2010 of December 28
Article 6 of the Decree-Law No. 137/2010 of December 28, amended by the Law
n 60-A/2011 of November 30 by the Decree-Law No. 32/2012 of February 13 by the
Law No 66-B/2012 of December 31 and by the Decree-Law No. 36/2013 of March 11,
goes on to have the following essay:
" Article 6.
[...]
1-[...].
2-[...].
3-Stay resaved from the provisions of the previous number the retirees,
retirees, reservists or equiped, hired or appointed, to:
a) To integrate the surveillance teams to the schools provided for in the Decree-
Law No. 117/2009 of May 18, amended by the Decree-Law
n. 14/2012 of January 20;
b) Work as pilots, air traffic controllers, technicians
of aeronautical maintenance, accident investigators in aviation
civil or specialized aeronautical personnel, under the Decree-Law
n. 145/2007 of April 27;
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c) Exercise functions as clinicians in services and establishments of the
National Health Service, pursuant to the Decree-Law No. 89/2010,
of July 21, during the period of its duration, extended by the
Decree-Law No 94/2013 of July 18, until July 31, 2015;
d) Preset vocational training promoted by the Institute of
Employment and Vocational Training, I. P., in the quality of pilots,
air traffic controllers, aeronautical maintenance technicians and
other specialized aeronautical personnel, as long as the training is
circumscribed to the commitments made by the Portuguese state
relating to the development of the aviation industry and with prior
information to the member of the Government responsible for the area of
Public Administration;
e) Intervene, as arbitrators chairpersons in the arbitration referred to in the
Article 375 of Annex I to Law No 59/2008 of September 11,
amended by Law No. 3-B/2010 of April 28 by the Decree-Law
n. 124/2010, of November 17, and by the Laws n. 64-B/2011, of 30
of December, 66/2012, of December 31, and 68/2013, of 29 of
august.
4-The retirees, retirees, reservists or equiees covered by the
previous number would necessarily choose between realizing the totality of the
pension or remuneration on booking and a Tuesday part of the remuneration
basis that compete for the duties exercised or receive the entirety of this and a
Tuesday part of the pension or remuneration on the reserve, with the exception of the
doctors, to which the partial accumulation schemes continue to apply
and suspension of the pension provided for in the Decree-Law No. 89/2010, 21 of
July.
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5-The entities in which the functions are exercised communicate to the General Box
of Retirees the option of the pensioner, on the terms and with the cominations
established in the Status of Afpostion.
6-[ Revoked ]. "
Article 7.
Transient and adaptation standard
1-The pensions assigned by the CGA, up to the date of the entry into force of this Law, are
changed, with effect from January 1, 2014, on the following terms:
a) Retirement, retirement and disability pensions of illiquid monthly value
higher than € 600.00, fixed in accordance with the successive calculation formulas
in force of the Status of Retirement, Approved by Decree Law No. 498/72, of
December 9, as well as set of harmony with special regimes
provided for in own statutes or in other legal or conventional provisions,
have the illiquid value on December 31, 2013 reduced by 10%;
b) Retirement, retirement and disability pensions of illiquid monthly value
higher than € 600.00, fixed on the basis of the calculation formulas successively in
Vigour of Article 5 of Law No 60/2005 of December 29, amended by the Laws
n. paragraphs 52/2007, of August 31, 11/2008, of February 20, and 66-B/2012, of 31 of
December, have the net worth of the P1 recalculated by replacement of the
remuneration (R), initially considered, by the percentage of 80% applied to
same gross remuneration of quota for retirement and pension of
survival;
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c) Overall gross monthly value survival pensions at once the
indexing of social supports (IAS) fixed in accordance with the Status of Pensions
of Survival, approved by the Decree-Law No. 142/73 of March 31, have the
net global value on December 31, 2013 reduced by 10%;
d) Monthly gross monthly value survival pensions in excess of an IAS,
fixed simultaneously in accordance with the Status of Pensions of Survival,
approved by Decree-Law No. 142/73 of March 31 and with the rules of the scheme
general social security, are recalculated by application of the provisions of the b )
to the illiquid value of the P1 of the pension, retirement or disability pension that
have by reference.
2-The provisions of the preceding paragraph shall not apply to the following pensions, which remain
unchanged:
a) Those fixed solely on the basis of the legal standards applicable to the calculation of the
pensions of beneficiaries of the general social security scheme under the terms of the
provisions of the Decree-Law No 286/93 of August 20;
b) The automatically updated by indexing to the remuneration of workers in the
net asset of quotas for retirement and survivor pension;
c) The extraordinary retirement or disability pensions of the disabled of the Forces
Armed;
d) Retirement, retirement and disability pensions, awarded by the CGA to the
date of entry into force of this Law, of an unlawful monthly value not exceeding that:
i) € 750.00, provided that the recipient's respect is at least 75 years old;
ii) € 900.00, provided that the recipient's respect is at least 80 years old;
iii) € 1050.00, provided that the recipient's respect is at least 85 years old;
iv) € 1200.00, provided that the recipient's respect is at least 90 years old;
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e) Survival pensions, assigned by the CGA to the date of the entry into force of the
present law, of monthly gross monthly value not exceeding:
i) € 450.00, provided that the elder beneficiary is at least 75 years old;
ii) € 500.00, provided that the elder beneficiary is at least 80 years old;
iii) € 550.00, provided that the elder beneficiary is at least 85 years old;
iv) € 600.00, provided that the elder beneficiary is at least 90 years old;
3-A The application of the provisions of the provisions d ) and and ) of the previous number evolves in function of the
age of the beneficiaries covered by the scope, producing effects from
of January 1 of the year following the one in which the beneficiary completes the age of each
step.
4-In cases where the application of the provisions of paragraph 2 shall result in a pension for retirement,
of retirement and invalidity of a monthly net worth less than € 600.00 or a pension of
survival of monthly gross monthly value lower than an IAS, applies only to
reduction necessary to ensure the realization of those values, which are progressively
high depending on the age of the beneficiary under the terms of the sub- d ) and and ) of paragraph 2,
respects.
5-The provisions of the preceding paragraphs shall also apply to retiree pensions,
of retirement, disability and survival to be allocated by the CGA after the entry into force
of this Law in accordance with the calculation formula referred to in points a ) a d ) of paragraph 1 of the
present article, regardless of the date of the presentation of the application for the application
of pension or of the officious promotion of its allocation, producing the reduction of the value of the
Pension effects from the moment on this is due.
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6-A change in the value of pensions effected under the terms of this Article is reversible
in a context of economic growth of the country and fiscal balance of accounts
public, affixed by the cumulative verification of the following conditions in two years
consecutive:
a) Gross domestic product (GDP) has an equal annual nominal growth or
greater than 3%;
b) The budget balance is close to the balance, not less than -0.5% of GDP, of
agreement with the principles of the Stability and Growth Pact and, in
particular, of the Treaty on Stability, Coordination and Governance in the Union
Economic and Monetary, transposed into national legislation, specifically
for the Budget Framework Act, passed by Law No. 91/2001, of 20
of August.
7-Verified the conditions laid down in the preceding paragraph, a reversal of the
recalculation of pensions, effected for the illiquid value earned on December 31 of
2013, without prejudice to the legal updates.
Article 8.
Abrogation standard
1-Are repealed all standards setting up service time additions to
retiming effects within the CGA, without prejudice to the application of the accruals of
time provided for the time of service provided by December 31, 2013 and of the scheme
of bonification applicable to the military of the Armed Forces, provided for in legislation
special, which currently finds itself in review.
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2-Are repealed Article 89 (2) and Article 118 of the Status of Apostion,
approved by Decree-Law No. 498/72 of December 9 passing the right to
benefits of CGA awarded on grounds of incapacity to depend on the
confirmation of this inability by the medical board of the CGA.
3-The provisions of the preceding paragraph shall cover:
a) All pensions and cash benefits paid by the CGA that have as
condition of assignment, among others, the inability of its beneficiary;
b) Partial permanent disability, whatever the degree, and disability
absolute permanent, regardless of the relationship of those incapacities with
the service or the functions performed;
c) All situations where the incapacity is, in advance of the sending of the process to
CGA, declared by another entity, particularly on the basis of opinion or
joint decision or private medical service.
4-Are repealed Article 37 (4) (4) and Article 78 (6) of the Statute of the
Retirement, approved by the Decree-Law No. 498/72 of December 9.
5-It is repealed Article 6 (6) of the Decree-Law No. 137/2010 of December 28,
amended by Law No. 60-A/2011 of November 30 by the Decree-Law No. 32/2012, of
February 13, by Law No. 66-B/2012 of December 31 and by the Decree-Law
n. 36/2013, of March 11.
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Article 9.
Prevalence
1-The provisions of the previous article have excecional and imperative character, prevailing over
any other standards, general or special, contrary and on instruments of
collective regulation of work and employment contracts, and may not be turned away
or modified by the same, with the exception:
a) From the occupational accident and occupational diseases scheme established in the
Decree-Law No. 503/99 of November 20, as amended by the Laws 59/2008, of
September 11, and 64-A/2008, of December 31;
b) Of the scheme provided for in Decree-Law No. 43/76 of January 20, concerning the
qualified military personnel with disabilities from the Armed Forces under that diploma.
2-The provisions of Article 3 of Law No 60/2005 of December 29 in the essay given by the
present law, has excecional and imperative character, prevailing over any others
standards, general or special, contrary and on instruments of collective regulation
of work and employment contracts, and may not be sidelined or modified by the
same, with the exception of the non-transitional regimens provided for in the Decree-Law
n ° 229/2005 of December 29 and of the statutory schemes provided for:
a) The military of the Armed Forces, the Republican National Guard, the Police
Maritime and other militarized personnel;
b) The personnel with police functions of the Public Security Police;
c) The criminal investigation personnel of the Judiciary Police;
d) The staff of the prison guard's body.
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3-The pension suspension scheme provided for in Article 79 of the Status of Retirement Allowance,
approved by the Decree-Law No. 498/72 of December 9 in the essay given by the
this law, applies to situations of the performance of functions constituted or renewed to
departure from the entry into force of this Law.
Article 10.
Entry into force
This Law shall come into force on the day following that of its publication.
Seen and approved in Council of Ministers of September 12, 2013
The Prime Minister
The Minister of the Presidency and Parliamentary Affairs