Towards the end of last year, the Brazilian government introduced a new version of the pension reform bill to the legislature for deliberation and approval. Earlier on, President Michel Termer had introduced a tougher version of the bill, but it was rejected by the majority of the legislators. The legislators feared that the earlier version of the pension reforms would not go well with the members of the public and therefore it would ruin their chances of re-election in polls scheduled for October.
The new pension reforms bill introduced by the President requires workers in the private sector to contribute to the scheme for only fifteen years while workers in the public sector will contribute for a minimum of twenty-five years. The proposed pension reforms bill also indicated that all workers should work for forty years to get the full pension.
The proposed pension reforms bill had also set the minimum retirement age for men at 65 years while the women would retire at 62 years. This proposal would help in reducing the total cost of Brazilian pension scheme, which is the main cause of the budget deficit experienced in the last few years.
However, the Brazilian President recently threw in the towel after the Congress failed to pass the proposed bill for fear of ruining their re-election chances later this year. The proposed bill was at the heart of President Michel Termer’s re-election manifesto for polls scheduled for October this year.
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Luiz Carlos Trabuco support for the pension reforms bill
Luiz Carlos Trabuco, the chairman of the largest lender in Brazil recently expressed his support for the proposed pension reforms bill. According to Luiz Carlos Trabuco, passing the proposed reforms bill is important in helping the Brazilian government to meet the ceiling of public spending.
According to Luiz, it would serve the country well if the Congress would pass the proposed bill before the country enters into elections later this year. Luiz Carlos Trabuco continues to note that if the bill is not passed, it will increase the cost of financing the Treasury, thus increasing the budget deficit.
About Luiz Carlos Cappi
Luiz Carlos is one of the renowned big-wigs in the Brazilian banking industry. He is the chairman of Brazil’s largest private bank, Banco Bradesco. Luiz has been working in the Brazilian banking industry from 1969 when he joined Banco Bradesco as an intern. He worked in various departments within Bradesco bank, which enabled him to gain a wealth of experience in the Brazilian banking sector.
In his 50-years career at Bradesco, Luiz has made numerous contributions to the bank, enabling it to stand tall among its competitors. In the years 2003-2009, Luiz served as the CEO of Bradesco Seguros, the insurance division of the Bradesco bank. Luiz led the Bradesco Seguros to become the top insurer in Latin America.
In 2015, while serving as the president of Bradesco bank, Luiz led the institution into a historic deal in the Brazilian banking sector where Bradesco bank acquired HSBC bank for a whopping $5.2 billion. The acquisition put Bradesco bank at the top position, beating their rivals Banco Itau who had overtaken them in 2009.