The government drafted a bill that aims to reduce future special scheme pensions of and raise the retirement age.
The idea behind the proposal is to calculate the amount of the retirement pension based on 80% of the average of the top 12 salaries for the last two years.
Currently, the calculation is made on 100% of the average, which includes the base salary and revenue pluses as annuities, exclusive dedication, prohibition and career, among others. It also imposes a special tax of 10% for all pensioners whose benefits exceed the sum of 12 times the lowest salary paid in public administration.
The contribution would now range between 25% and 70%, depending on the amount exceeding the pension. The text also includes a gradual increase on the minimum retirement age from 55 years old to 60 years old.
With these measures, the government hopes to save ¢20,525 million, equivalent to 0.07% of the gross domestic product (GDP).