Public Outcry in Rio de Janeiro Over Pension Fund Law Sparks Delay in Vote
Protests over proposed law allowing use of Rio de Janeiro pension funds to pay state debts delay legislative vote amid concerns of financial security.
- • The bill Law 6.035/25 allows pension funds to be used for debt payment, sparking protests.
- • Vote on the bill was postponed after public employee mobilization.
- • Concerns raised about dependency on oil revenue and pension fund liquidity.
- • Over 100 amendments have been proposed to block the legislation.
Key details
A proposed law in Rio de Janeiro permitting the use of Rioprevidência pension funds to pay off state debts has caused significant public concern and protests, resulting in the postponement of its legislative vote. The bill, Law 6.035/25, introduced by Governor Cláudio Castro's administration, would allow the diversion of oil and gas royalties previously reserved for the pension fund to service debts with the federal government. In 2024, nearly R$5 billion from Rioprevidência was already used for similar purposes.
Public employees, retirees, and pensioners strongly oppose the bill, citing risks to the pension fund's financial security. Vinícius Zanata, president of the Association of Public Ministry Servants of Rio de Janeiro, warned that relying on volatile oil revenues could jeopardize retirees' payments, especially in an election year with potential budgetary pressures. He highlighted that previous salary delays have traumatized workers and criticized the pension fund's recent questionable investment decisions.
Despite government assurances of Treasury backing, Zanata emphasized that such support depends on sustained high revenues, making it essential to maintain pension fund liquidity. Over 100 amendments have been proposed to block the bill. On the day of the planned vote, large protests by public servants and pensioners took place both inside and outside the Legislative Assembly. The mobilization is considered critical to safeguarding the pension system's future and demanding greater transparency and accountability in fund management.