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BPC: from security advances to the risk of social security reform

Abstract

This paper analyzes the proposed changes in the Continuous Cash Benefit (BPC) discussed within the Social Security Reform, both with regard to the Federal Government's original proposal in 2016 and the proposal by the rapporteur's project submitted to Congress in 2017. The proposed changes focus on two aspects: increased minimum age of access and unlinking the BPC amount from the minimum wage amount. The document discusses the justifications for the BPC reform, regarding both disincentives to social security contributions and demographic changes, as well as estimated possible impacts of proposed changes. The study concludes that measures, if approved, tend to reduce coverage and increase income vulnerability of the elderly and the disabled in the country.

Key words
Social security; Brazilian pension system reform; Continuous Cash Benefit (BPC)

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