The Losses Suffered by Insured Individuals Resulting from Changes to the Calculation Basis of Permanent Disability Retirement After Constitutional Amendment No. 103/2019

Abstract

Constitutional Amendment No. 103/2019 introduced significant changes to the Brazilian social security system, particularly regarding the calculation method of permanent disability retirement benefits, directly affecting the social protection afforded to insured individuals who are permanently unable to work. This study analyzes the losses resulting from the changes in the calculation method of permanent disability retirement benefits in comparison with temporary disability benefits, whose calculation method remained unchanged, addressing the historical, legal, social, and constitutional aspects of the pension reform. Prior to Constitutional Amendment No. 103/2019, disability retirement benefits corresponded to 100% of the benefit salary, whereas sickness benefits were calculated at 91%. Following the reform, permanent disability retirement benefits came to correspond to the average of 100% of the insured person's contribution salaries from July 1994 until the date of the application, to which an initial coefficient of 60% is applied, increased by progressive percentages according to the insured person's contribution period, while temporary disability benefits remained at 91%. This change created a disproportionality between the benefits, allowing permanently disabled insured individuals to receive lower amounts than those granted to temporarily incapacitated workers. The research adopts a qualitative approach based on legislative, doctrinal, and case-law analysis and demonstrates that the changes produced significant social and economic impacts, especially on families dependent on social security income, while also intensifying debates regarding the compatibility of the reform with constitutional principles such as human dignity, social solidarity, and the prohibition of social regression. It is concluded that, although the reform has been considered constitutional from an actuarial perspective, it has resulted in a significant reduction in the social security protection afforded to permanently disabled insured individuals.