1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

The Brazilian Pension System

Recent Reforms and Challenges Ahead

Brazil’s public pension expenditure is about 9 per cent of GDP, above the OECD average. Given that OECD countries are generally not only wealthier, but also significantly older, Brazil’s pension expenditures are clearly excessive, draining resources away from other areas, such as much needed social investment in health and education. Beyond its fiscal impact, the Brazilian pension system is also unjust. About half of total pension expenditure is paid to former civil servants, which account for only 5 per cent of total retirees. Given the demographic challenges Brazil is likely to face in the next decades, authorities have started to implement a series of reforms. The general regime available to private sector workers underwent major changes in 1999, which will help ensure its long-term actuarial and financial balance. However, problems remain concerning the growth of the informal economy, the weight of non-pension benefits financially imputed to the regime and the mechanisms for ...

English

Keywords: replacement ratios, fiscal federalism, Brazil, social security, pension system, fiscal adjustment, ageing, pension reform, civil servants
JEL: H55: Public Economics / National Government Expenditures and Related Policies / Social Security and Public Pensions; J26: Labor and Demographic Economics / Demand and Supply of Labor / Retirement; Retirement Policies; N36: Economic History / Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy / Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: Latin America; Caribbean; J11: Labor and Demographic Economics / Demographic Economics / Demographic Trends, Macroeconomic Effects, and Forecasts; G23: Financial Economics / Financial Institutions and Services / Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors; H72: Public Economics / State and Local Government; Intergovernmental Relations / State and Local Budget and Expenditures
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