Final report on sustainability of Social Security system “already with government”

Portugal’s government has received the final report from an expert working group on the long-term sustainability of the country’s Social Security system, marking the latest step in a review that could shape future pension policy.

A spokesperson for the Ministry of Labour, Solidarity and Social Security confirmed to Lusa news agency that the report, prepared by a panel led by economist Jorge Bravo, was presented to Minister for Labour, Solidarity and Social Security, Rosário Palma Ramalho, on Friday – and is now undergoing final editorial revisions.

According to the ministry, the document will be published “when considered appropriate”.

Speaking last month, Palma Ramalho said the government will first conduct an internal presentation of the report before sharing it with social partners and members of parliament. She did not specify when it would be made public.

While not formally listed on the agenda, the report could be discussed at Wednesday’s meeting of Portugal’s Standing Committee for Social Dialogue, writes Lusa.

The report was originally due by the end of January but was delayed several times because of what the minister described as “contingencies”. The government and the working group later agreed that it would be delivered by June 30.

Despite commissioning the study, the government has repeatedly ruled out a major overhaul of Portugal’s Social Security system during the current legislature (running until 2029).

During a parliamentary hearing earlier this month, Palma Ramalho said the government’s programme does not include a “structural reform” of Social Security but left the door open to “complementary measures” aimed at improving retirement outcomes for future pensioners.

She suggested that initiatives to strengthen financial literacy and encourage supplementary pension savings could be considered – citing complementary retirement plans as one possible avenue.

“A structural reform is outside the government’s horizon during this legislature,” the minister told MPs, adding that any future changes would be introduced gradually and with caution.

She also said the government would be open to considering recommendations contained in the working group’s report, as well as proposals from political parties concerning supplementary pension schemes designed to improve retirement prospects for future generations.

The minister stressed that the government has not adopted a policy favouring individual capitalisation over occupational or supplementary pension arrangements, describing both as complementary rather than structural elements of Portugal’s pension system.

The working group, chaired by economist and Nova University professor Jorge Bravo, was established to propose measures to safeguard the long-term sustainability of the Social Security system.

Its mandate includes developing sustainable strategies and practical recommendations that take into account the government’s programme, recent recommendations by Portugal’s Court of Auditors and proposals contained in the Green Book on Social Security, produced by a working group appointed under the previous government.

Under the terms of its appointment, the final report is expected to include detailed policy recommendations together with an implementation plan, performance indicators and specific short-, medium- and long-term objectives.

source material: LUSA