De-retirement – find out everything about the project that could become law
Find out what un-retirement is!
Announcements
In 2016, the Federal Supreme Court (STF) considered un-retirement to be illegal.
However, now, the Senate's Social Affairs Committee (CAS) has decided to approve it. This means that the retirement de-retirement could become a reality.
But what is this? How can this bill impact the lives of Brazilians?
If you want to know more about the subject, continue reading.
What is un-retirement?
De-retirement can be understood as the cancellation of a retirement previously granted to the insured, in order to accept a new benefit.
In other words, in practice, de-retirement represents the opportunity for a retiree under the General Social Security Regime (RGPS) to receive another retirement, in the event that he or she has retired but continued to work.
If this happened, the retiree in question continued paying the regular monthly contributions.
This means that the insured would waive the first benefit, to request a new process, which could result in a higher salary-benefit value.
How would un-retirement work?
If approved, it would allow retirees who have returned to work to request a review of the value of their benefit, which would take into account the contributions that were paid after they retired.
According to Senator Flávio Arns (Podemos-PR), the retirement benefits represent a proportional source of funding.
In practice, the retired person will no longer receive the benefit and will exclusively contribute to Social Security, representing a certain relief for the bills.
The text also provides for the application of the calculation criterion to the pension due to beneficiaries of the retired insured person.
How did the INSS retirement come about?
With the understanding that de-retirement was possible, several beneficiaries began to demand in court the right to have their current benefits recalculated.
Through an action, the insured said that all contributions made subsequently should be added together, even after retirement, to grant a fairer and more advantageous benefit.
Thousands of insured Brazilians have been able to obtain the right to un-retirement. As a result, they have started to receive more advantageous un-retirement amounts on their INSS paychecks.
The practice continued until the STF (Supreme Federal Court) stated that, due to the lack of legal provision, it is not possible for an insured person who has already retired to receive a benefit as a result of contributions made after the retirement request was approved.
Therefore, the Court ruled that only one law should create social security benefits.
In this case, since the un-retirement is not provided for in any law, it should not be applied. And that is why the practice has been prohibited since the judgment.
However, everything could change with the new approval, since the Bill – PL 172/2015, authored by Senator Paulo Paim (PT-RS) has been discussed again.
What are the expectations for un-retirement in relation to 2022?
As we said, the project was considered illegal in 2016.
But since the Senate's Social Affairs Committee (CAS) decided to approve the project, it could be deliberated in 2022.
In 2021, it is already common knowledge that the project will not be considered.
Senator Paulo Paim (PT-RS) expects the project to be deliberated in the first half of next year.
All governments were against the project, as they argue that retirement is something irrevocable.
However, the alleged actuarial effects were not observed: the retired person stops receiving the benefit and starts contributing exclusively to Social Security.
Flávio Arns claims that there are three aspects which generate resistance from the government: reversing retirement could cause workers to retire earlier; the contribution time paid would represent a loss to the public coffers; the contribution time through active return would lead to an increase in future benefits, which could compromise public accounts.
What are the main arguments of the defenders?
One of the main arguments of those in favor of de-retirement is that the rule set out in art. 18, § 2 of Law No. 8,213/1991 would be unconstitutional.
The reason would be the violation of the “contributory-retributive” principle.
It is because of this contradiction between legislation and the principles that govern Social Security Law that the thesis of de-retirement was created.
According to the thesis, retired insured individuals who return to work could request a de-retirement request by canceling the benefit they are receiving.
By adding the time used to grant the old benefit to the time worked after the benefit was granted, insured persons would have access to another, more advantageous benefit.
The increase in the benefit would be due to the following factors:
• Longer contribution period
• Greater age. Consequently, a reduction in the average contribution payment period, since there would be a relatively shorter time lapse between the new age and life expectancy and survival.
• The amounts received after retirement could be higher than those received during the first benefit
What is Social Security Law?
To help you better understand the subject, we will briefly explain a little more about Social Security Law.
Social Security Law is an area of Public Law focused on regulating Social Security.
In other words, the main objective of this area is to regulate Social Security, regulating the legal relationship between beneficiaries and social security funding.
Social Security Law aims to guarantee the rights of the Brazilian population when it comes to assistance and social security.
It is through the legal relationship existing in social security that the State supports contributors, providing assistance through existing benefits.
Currently, there are 10 benefits that can be granted to workers, depending on the case. They are:
- Retirement by age
- Retirement by length of contribution
- Disability retirement
- Special retirement
- Sickness benefit
- Accident benefit
- Assistance- imprisonment
- Family allowance
- Maternity insurance
- Survivor's pension
It is important to mention that all benefits depend on a set of analyses, such as the time of contribution to the INSS, for example.
Additionally, Congress can modify these rules.
Conclusion
In the case of those who already have a retirement benefit, before giving up the current benefit, it is necessary to consider all the variables to analyze whether changing the benefit is really the best option.
