End of discount to retired SP server is published and becomes law

The law that determines the end of the discount of extra contribution in the retirements of public servants of the Government of the State of São Paulo was published in the Official Gazette of SP this Saturday (5). The measure will take effect from January 1, 2023, when the charge will cease to be made.

The new legislation repeals Law 1,354, of March 2020, which determined the discount of extraordinary contribution to retirees and pensioners who earn values ​​between the minimum wage, today at R$ 1,212, and the social security ceiling of R$ 7,087.22.

The so-called confiscation of pensions arose after the reform of the Federal Social Security, incorporated in the state of São Paulo, which made its own reform. Since 2020, servers have been mobilized on account of the measure.

With the measure, only retirees and pensioners who earn above the INSS ceiling continue to pay the contribution, as was the case before. The discount is 16%. According to information from the government of SP updated this Friday (4), about 420,000 beneficiaries will be covered.

The measure will have an impact of R$ 2 billion less on the state budget, adding up all spheres, powers, autarchies and universities, says a government note.

The project was sanctioned by Governor Rodrigo Garcia (PSDB) on Friday. “Alesp unanimously approved the end of discounts for civil servants who earn below the INSS ceiling. I sanction this project, which takes effect on January 1st”, he said, after signing the law.

On social media, deputy Carlos Giannazi (PSOL) celebrated the measure, congratulated the servers and said that, from now on, opposition parliamentarians must mobilize for the return of values. “Now our fight is for the return of values ​​stolen, robbed and confiscated from retirees and pensioners”, he said.

The CPP (Centro do Professorado Paulista) must file a lawsuit to recover what has been discounted since the second half of 2020. “There’s only one way: it’s a collective action on behalf of all associates to try to return what was to us taken away”, says professor Silvio Tupa, first vice-president of the CPP.

How was the discount and how will it be

The discount, from 12% to 14%, was applied to retirements and pensions with an amount above the minimum wage up to the INSS ceiling since the second half of 2020. Above the ceiling, the discount had risen from 11% to 16%.

Before that, only the benefits of inactive workers above the INSS ceiling had a rate. The charge only fell on the amount that exceeded this limit. Now, the discount is back to 16%.

According to Tupa, even with the 16% discount on amounts above the social security ceiling, the measure is a victory for the category, as it benefits many retirees. “That was a very big benefit, because since that time we have been receiving discounts. There are people who have very high discounts, of more than R$ 1,000.”