Brazil pays social security benefits to workers who meet the applicable eligibility standards, including minimum length‑of‑coverage and recency-of-work requirements. Under Article 7, if a person has not worked long enough or recently enough to meet the normal eligibility requirements, Brazil will add the person's U.S. coverage credits to his or her Brazilian credits. If the person meets the requirements based on combined U.S. and Brazilian credits, Brazil will pay a pro rata (i.e., partial) benefit that is proportional to the amount of coverage credited under the Brazilian system.
BRAZILIAN SOCIAL SECURITY BENEFITS
GENERAL
The Brazilian social security system is a two-tiered structure consisting of a basic program called the General Regime of Social Security (RGPS) and a voluntary, private savings scheme called the Complementary Pension Regime (RPC). Brazilian Government and military employees have coverage under a separate system known as the Regime of Social Security for Public Servants (RPPS). The RGPS, or first tier, is a contributory program that covers virtually all residents of Brazil. Brazil pays RGPS benefits in amounts that it bases primarily on the number of years of contribution and amount of lifetime earnings. The RPC program exists to supplement the basic (RGPS) benefit, and participation is voluntary. Benefits and contributions under the RPPS mirror those of the RGPS.
OLD-AGE BENEFITS
Under the RGPS, retirement age is typically 65 for men and 60 for women residing in urban areas. In rural areas, these age requirements are age 60 and age 55, respectively. However, a male who has 35 years of contributions or a female with 30 years of contributions may receive a pension at any age. A minimum of 180 months of RGPS coverage is required. Brazil calculates benefit amounts by multiplying the average of 80 percent of the highest earnings throughout the applicant’s working life by a parameter that depends on age at retirement, length of contribution and life expectancy at retirement.
DISABILITY BENEFITS
The RGPS pays benefits to two classes of disability beneficiaries. Permanent disability benefits are available to those who are permanently incapable of working. Eligibility for these benefits requires that an individual has at least 12 months of covered earnings, ceases work, and is permanently incapable of working. A temporary disability benefit is payable to those whose disability prevents them from working for more than 15 days. Once a person receives temporary disability benefits for two years, RGPS deems him or her permanently disabled. The benefit amounts for the permanent and temporary disability benefits are 100% and 91% of average lifetime earnings, respectively.
SURVIVORS BENEFITS
RGPS survivors benefits are payable to dependent widow(er)s or partners as well as minor children under age 21 or disabled, parents of the deceased, and unmarried siblings under age 21 or disabled. If there is no eligible surviving spouse, partner or child, the order of payments is as follows: parents and then siblings who are under age 21, or any age if disabled. There is no required minimum period of coverage for survivors benefits eligibility, but the deceased worker must have had recent coverage under the Brazilian system at the time of death.
COST-OF-LIVING ADJUSTMENTS
RGPS adjusts benefits according to changes in the consumer price index. RGPS makes the adjustment concurrently with changes in the minimum monthly salary. There is no statutorily defined date by which cost of living adjustments (COLAs) must be determined, but typically, the minimum monthly salary increases on an annual basis.