The simple arithmetic average of contributory earnings would be the sole basis for calculating contribution-based and scheduled retirement pensions under a proposal being considered by Brazil’s Chamber of Deputies. Bill 3027/26 would end the pension factor in pensions paid by the National Social Security Institute (INSS).
Currently, the factor acts as a reduction mechanism that links the pension amount to age, life expectancy and contribution period. The bill retains transition rules, prohibits mechanisms that reduce benefits and preserves vested rights. It also allows insured individuals to choose the most advantageous rule when applying for retirement.
The bill’s author, Deputy Heloisa Helena (Rede-RJ), currently an alternate, says the factor penalizes people who start working early, lower-income insured individuals and workers in strenuous occupations.
The bill will be reviewed by committees and must be approved by the Chamber and the Senate. If it becomes law, the executive branch will have 90 days to issue regulations and adapt the INSS systems.
