Brazil governors seek consensus over pension reform

Brazilian state governors took part in the 5th meeting of the Forum of Governors in Brasília today (Jun 11). They seek to come to a minimum consensus on how to increase the chances for the reform of Brazil’s pension system to be approved by Congress. Also in attendance were Rodrigo Maia, lower house speaker; Marcelo Ramos, chair of the special commission on the pension reform; and Samuel Moreira, in charge of drafting a report on the bill.

“We’re working to have a political environment that seeks the support for Congress members to feel comfortable [voting to pass the reform] and to make the people aware that the reform is important,” Rio Grande do Sul Governor Eduardo Leite said upon arrival.

The overhaul, Leite said, will serve as “a clear sign” for investment to be made in Brazil. “States and municipalities should be kept in, because otherwise it’s half a reform. And half a reform would bring half of investors’ enthusiasm.”

Espírito Santo governor Renato Casagrande advocated the same rules for both federal, state, and municipal officials. “Rules should be the same because officials’ working conditions are similar everywhere.”

Letter

The meeting took place after an early release of a public letter on June 6, which displeased some governors in the Northeast, leading to another letter being disclosed on the same day, signed by Northeastern governors.

On the discontent felt by some over the letter, Governor Leite argued that “doing governance of governors is not something simple because all have the same governance hierarchically,” adding that state leaders have no authority over votes cast by Congress members. “But we can provide the basis for clear and effective stances,” he went on to say.

Agenda

Even though the deficit in the pension system stands at over $23.2 billion a year, Congress leaders show resistance in approving harsher rules for the retirement of state and municipal officials. In Congress, those resisting the idea argue that governors and mayors cannot pass on to Congress representatives and senators the political wear and tear of unpopular measures in the Legislative branch.

The municipalities also want to make sure they are kept in the scope of the reform. Last week, the President of the National Confederation of Municipalities (CNM) Glademir Aroldi, handed to Marcelo Ramos and Samuel Moreira—respectively the chairman and the rapporteur of the special commission on the pension reform—a document signed by heads of state agencies highlighting the importance of a sustainable pension system for present and future generations.