SAO PAULO, June 18 (Reuters) - Brazilian President Dilma Rousseff on Thursday decreed a new rule limiting pension benefits in a bid to guarantee the sustainability of the country’s social security.
The new rule, published in Brazil’s official gazette as a presidential decree, differs from a formula approved by Congress last month that would increase pension payments.
Rousseff vetoed on Wednesday Congress’ bill with the so-called 85/95 formula, which allows women to draw full pension benefits if the sum of their age and years of pension payments reached 85. The same would go for men if the sum reached 95.
Instead, Rousseff issued a decree gradually increasing that sum by a total of five points over the next seven years -- one point would be added to the required sum in 2017, 2019, 2020, 2021, and 2022.
It was still not clear how much savings the government would obtain with the new rule. According to the government, the previous formula approved by Congress would represent 3.2 trillion reais ($1.05 trillion) in additional expenditures over the next 45 years.
$1 = 3.06 reais Reporting by Walter Brandimarte Editing by W Simon