See what changes for civil servants with the approval of the Social Security reform in SP

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Employees of the City Hall of São Paulo should have new rules on retirement in the first half of 2022. The pension reform of the municipal civil servants was approved this morning, between Wednesday (10) and Thursday (11) and should enter into force 120 days after the enactment of the measure.

The enactment will be made by the president of the Chamber, councilor Milton Leite (DEM). As it is a PLO (Project for Amendment to the Organic Law), there is no need for sanction from Mayor Ricardo Nunes (MDB). In addition to the basic text, councilors approved seven amendments.

The approval of the Social Security reform, sent by the mayor in September as a matter of urgency, had heated spirits inside and outside the plenary. Early Wednesday night, servers and the GCM (Metropolitan Civil Guard) clashed after protesters threw objects into the House.

The GCM retaliated with bombs and had the support of the PM. In the confusion, a protester had a fractured leg. Inside the Chamber, councilors debated and civil servants who managed to enter protested. The matter was put to the vote around 23:40, after a lot of bickering between the situation and the opposition.

In the first vote, the mayor lost. There were 36 votes in favor of the measure and 18 against. 37 favorable votes were needed. The missing vote was made by councilor Sansão Pereira (Republicans), who did not register his position within the stipulated period.

The opposition came to celebrate the “victory” and congratulate the servers, who also celebrated. However, the president of the House called an extraordinary session, where the project was approved in a second vote. According to the regulations, a new session could be called before 23:59.

The amendments were evaluated in the early hours of this Thursday (11). On Thursday, the servers decided to end the strike of the category, which started against the reform. Now, they are going to debate with the Executive how the days they were stopped will be.

Social Security Reform in SP: what says who is against and who is in favor

SP reform | See what changes for the server

End of exemption for retirees

  • Among the main changes is the end of the exemption for retirees and pensioners
  • Starting next year, all inactive employees will pay 14% rates to Iprem (Institute of Municipal Social Security of São Paulo)
  • Today, only those who earn above the INSS (National Social Security Institute) ceiling of BRL 6,433.57 in 2021 should contribute
  • An amendment ensures that there will be no differentiation in rates between active and inactive workers.

Minimum retirement age

  • The rules for retiring people will change. The bill says that the minimum age goes from 55 to 62 for women and, for men, from 60 to 65 years old.
  • In the case of teachers, it is five years less, that is, men aged 60 and women aged 57
  • The minimum contribution time was kept at 30 years for them and 35 years for them.
  • The change in retirement applies only to new employees
  • The others enter into the transition rule, which is the same as provided for by the reform of the federal Social Security, that is, a reduction of one year of age for each year of contribution that exceeds 30 years, if a woman, and 35 years, if a man
  • The determination is provided for in one of the seven amendments approved by councilors.

Benefit calculation

  • There is also a new calculation to retire
  • All employees who joined after December 31, 2003 will have the benefit calculated based on the average salary for the entire contribution period.
  • Currently, Iprem considers the average of the 80 highest salaries
  • The change could reduce 30% of the value of future pensions, estimates Sinpeem (Union of Professionals in Education in Municipal Education of São Paulo)

pension for death

New provident fund

  • Revenue from rents from city hall properties, from privatizations and from IR (Income Tax), for example, will be allocated to the Capitalization Regime, called Funprev
  • This means that workers who joined the municipality after December 27, 2018 will contribute to this fund and will not contribute to the pension payment of those who entered before this date
  • The so-called Funfin, in turn, will cover retirees and employees appointed before December 2018
  • Employees fear that the change could dehydrate the fund, increasing the risk of bankruptcy of the Municipal Security
  • The city counter that there is the possibility of public servants being transferred to the capitalized fund when it has a surplus (when contributions exceed the amount of payments)
  • According to an approved amendment, the city hall has up to 30 days to present to the City Council which properties will be given as guarantee for the maintenance of Iprem

Project was the target of protests and strike

Mayor Ricardo Nunes’ justification for sending the project urgently was his concern with the sustainability of the municipal social security system and with fiscal responsibility. The estimated deficit is R$171 billion. With the reform, the deficit could drop to R$ 60 billion.

​On the other hand, civil servants, who will be directly affected by the changes, classify the proposals as an attack on workers’ rights. So much so that municipal officials had been on strike since October 15 and protested weekly in front of the Chamber.

Along with the reform of the municipal social security system, Mayor Ricardo Nunes also sent a package of changes to the career of civil servants, whose projects have already been approved by councilors in previous weeks.

The 30% readjustment in the salaries of commissioned workers, the vacation system, the reduction of paid absences and the creation of a career for assistants were some of the changes.

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