Social security in Brazil

Social security in Brazil has its origins in the 1824 Constitution, specifically through a system of "public aid" provided by private initiatives such as the Santa Casa de Misericórdia.[6] Brazil's social security system operates under a solidarity welfare model, where current beneficiaries are supported by the contributions of active workers.The high costs of social security have contributed to inflation and low economic growth, prompting the need for reforms.[10] In 1821, Prince Pedro de Alcântara issued a decree granting pensions to masters and teachers who completed thirty years of service, with an allowance of one-quarter of their income for those who continued to work beyond this period.The 1891 Constitution extended pension rights to civil servants in cases of disability, although it did not cover other categories of workers.Although the CAPs operated on a capitalization basis, their structural weaknesses included a limited number of contributors, questionable demographic assumptions, and frequent instances of fraud in benefit claims.The 1946 Constitution further developed the social security framework by formalizing protections against death, illness, disability, and old age.In 1974, the Empresa de Tecnologia e Informações da Previdência (Social Security Information and Technology Company - Dataprev) was founded.III - on revenue from betting contests.Since the Constitution's enactment, the Brazilian social security system has predominantly utilized a distribution model.[11] In 1998, the federal government implemented changes to the social security system through Proposed Amendment to the Constitution (PEC) No.[30][31] At the end of 2016, the government of Michel Temer proposed a significant reform to the social security system, filed as PEC No.This proposal aimed to address changes in retirement rules in response to increasing life expectancy and a shrinking working-age population, among other factors.In February 2018, the Temer government announced the suspension of PEC 287/2016 due to prolonged negotiations with parliamentarians and negative public reactions.[36] On February 20, President Jair Bolsonaro presented a social security reform proposal to Congress, developed by the Ministry of Economy, headed by Paulo Guedes.Paulo Guedes has mirrored the Chilean pension model, in which the money is managed by private companies which, in turn, can invest in the financial market.