Brazil's Supreme Court to Rule on Landmark Retirement Benefits Case on December 18

Brazil's Supreme Court to Address Retirement Reforms

Brazil's Supreme Federal Court (STF) is set to convene on December 18, 2025, for a pivotal trial that could significantly reshape the country's retirement benefits system. The court will address three central points concerning special retirement benefits, which were largely impacted by the 2019 pension reform.

The decisions reached by the STF could lead to earlier retirements and increased benefits for a substantial number of Brazilians, including those currently retired or nearing retirement.

Key Issues Under Deliberation

The upcoming trial will focus on three critical aspects of special retirement benefits:

• Elimination of the Minimum Age for Special Retirement: Currently, individuals seeking special retirement, typically granted to those working in hazardous, unhealthy, or dangerous conditions, are subject to a minimum age requirement (e.g., 60 years for 25 years of special activity). This requirement has meant that even workers who have completed the necessary service time in risky environments cannot retire until they reach the specified age. Overturning this could allow for earlier retirement for these professionals.
• Reinstatement of Full Retirement Benefits: The 2019 pension reform introduced changes that, in many cases, reduced disability retirement benefits from 100% to 60% of the average salary. The trial will examine the possibility of restoring full benefits, calculated at 100% of the average salary, for special retirement.
• Conversion of Special Service Time to Common Time: The 2019 reforms largely prohibited the conversion of time spent in hazardous conditions into common service time. The STF will consider allowing this conversion once again, which could enable workers to increase their overall contribution time and potentially enhance their benefits.

Context of the 2019 Pension Reform

The discussions at the Supreme Court are a direct consequence of the 2019 pension reform, a constitutional amendment enacted to address public spending on pensions. This reform introduced a minimum retirement age for general old-age pensions (65 for men and 62 for women), reduced future state pensions, and altered social security contributions. While special retirement categories for rural workers and those in hazardous conditions were maintained, new rules, including minimum age requirements, were imposed.

Potential Ramifications and Current Status

The outcome of the December 18 trial holds significant implications for millions of Brazilians, potentially altering their retirement planning, benefit values, and retirement dates. The issue has been closely watched, with a previous vote on December 3rd resulting in a tie among the justices, indicating the contentious nature of the debate and the potential for any further vote to be decisive.