Updated information on rules and requirements for retirement contribution time.

The retirement based on contribution time was a popular choice in Brazil for many years.

With the pension reform (EC 103/2019), this option was changed and new regulations were introduced.

Many individuals with insurance possess entitlements or could take advantage of the temporary regulations.

This guide outlines the regulations, prerequisites, benefit computations, and the impact of these modifications on policyholders.

What is Contribution Time Retirement?

Prior to the 2019 Pregnancy Reform (EC 13/2019), this option enabled individuals to qualify for retirement with a minimum contribution period to the INSS without needing to meet a specific age requirement.

It was perfect for individuals who began working early and gathered sufficient time either continuously or with breaks in between.

With the Reformation, this regulation was abolished, but those who had already met the criteria keep the rights they had obtained.

New transition rules were established to assist individuals nearing the minimum time requirement.

What is Retirement by Time of Contribution and Age?

The reform included implementing new rules for transitions that combine age and years of contribution.

Insured individuals who were already employed are given the opportunity to slowly adjust to the new system.

Different options for accessing pension benefits are determined by the connection between age and contribution.

Who qualifies for Retirement for Time of Contribution?

Insured individuals with vested rights who met the criteria before the Pension Reform on 13/11/2019 are entitled to retirement based on their contribution time.

It is essential for insured individuals to meet the transitional rules to secure their retirement.

Retirement criteria based on years of service and contributions.

The demands vary based on when the policyholder initiated their payments.

• Before the Reformation began:

1. Men can contribute for 35 years, have 180 months of absence, and there is no minimum age requirement.
2. Women have contributed for 30 years but faced 180 months of deprivation with no specified minimum age.

• After the Reformation: Adherence to the transitional regulations is essential, which involves a combination of time contributed, minimum age, scoring, or fees.

Special working conditions like exposure to dirt or danger can shorten the time needed for work by converting special time into regular time.

Insured individuals who meet the criteria described are eligible for a unique form of retirement.

Retirement Benefit Calculation Time Contribution

The retirement benefit calculation for the discussed case considers the INSS contribution period.

With EC 103/2019, some updates have been introduced. Here are the details:

• Before the Reformation, the pension factor is calculated using an average of 80% higher contribution wages, and its value may vary based on age and contribution period.

• An average of 60% of wages has been returned since July 1994 following the Reformation, with additional increases of 2% per year for contributions exceeding 15 years for women, or 20 years for men (Article 26, Section 2, EC 103).

Rules for Transition to Retirement Based on Contribution Time [EC 103/2019]

Transitional rules were implemented to ensure a seamless transition to the new social security regulations and to support the rights of insured individuals who had made contributions to the INSS prior to the reform.

See each one of them listed below:

Contribution time for retirement: 50% of the rule of Pedage [Article 17, EC 103/2019].

Insured individuals who, in 2019, were within two years of completing the required contribution period.

• Men live for 33 years on average.
• 28 designed for females.

It is required to meet over 50% of the minimum required time to reach 30 years of contribution for women and 35 years of contribution for men.

The benefit value will be given based on the average of contribution wages and remuneration, multiplied by the pension factor, as specified by the law.

The pension factor considers the insured person’s age, life expectancy, and length of contribution when they retire (Article 29, Sections 7 to 9, Law No. 8,213/91).

Retirement contribution duration: Full percentage regulation [Article 20, EC 103/2019]

Insured individuals who made contributions to the INSS in 2019 but have less than 28 years of contributions for women or less than 33 years for men need to follow these guidelines.

• Men must have made contributions for 35 years, experienced at least 180 months of unemployment, and be at least 60 years old.
• Women have contributed for 30 years, experienced at least 180 months of absence, and are 57 years old.
• A man who has not completed 35 years of contributions and a woman who has not completed 30 years of contributions by the date of pension reform will receive a payment equivalent to 100% of the missing contribution time.

Retirement Contributions: Progressive Age Guideline

You have the option to retire by meeting the specified criteria as of the date when EC 103 was enacted on December 11, 2019.

• 30 years supporting women and 35 years supporting humanity (Article 16, I, EC 103).
• Women can retire at the age of 56, while men can retire at the age of 61 (Article 16, II, EC 103).

The constitutional amendment has stated an annual increase of 6 months until reaching the current minimum age required since January 2020.

View an example of the table provided (Article 16, Section 1, Constitutional Amendment 103/19):

Insured individuals who demonstrate effectiveness in teaching roles in early childhood education and primary or secondary schools will receive benefits based on their contribution time and age (Article 16 § 2, EC 103).

• Women can contribute for 25 years and retire at 51, with their retirement age increasing by 6 months each year until it reaches 57.
• Man has been contributing for 30 years and is 56 years old, with his age increasing by 6 months each year until he reaches 60 years.

Contribution time for retirement: Point-based rule [Article 15, EC 103/2019]

To ensure a retirement based on years of contributions, one must fulfill specific criteria according to the points system.

• Man: 35 years of service, with a minimum of 180 months without.
• Woman: 30 years of dedication, with a minimum of 180 months of absence.
• Equivalent to 86 points for women and 96 points for men based on age and years of contribution, including fractions.

From 2020 onwards, there will be a yearly increase of 1 point until women reach a maximum of 100 points and men reach 105 points, as specified in the constitutional amendment (Article 15, Section 1, EC 103).

Age and length of service will be measured in days to determine the total points awarded (Article 15, Section 2, EC 103).

Teachers are subject to different rules, as stated in Article 15, Section 3 of Executive Order 103.

• 25 years of supporting women and 30 years of supporting men.
• The combination of age and years of service, including fractions, adds up to 81 points for women and 91 points for men.
• There will be an annual increase of 1 point until reaching the maximum of 92 points for women and 100 points for men.

What is considered as “Service Time”?

For RGPS, the “service time” is defined as:

• Contributions were efficiently documented.
• Periods of living in rural areas or serving in the military;
• Special activity time can be converted to regular time.
• Public service with its own rules.

Is your client’s contribution time ready for retirement application?

Retirement requirements have evolved, but transition regulations ensure options.

Well-informed attorneys can assist their clients in optimizing advantages by utilizing legislation and leveraging AI tools such as Legal.AI to swiftly handle process components with compelling justifications.