The expert committee of the Social Security Green Paper presented to the government has defended a review of the governance model of the Financial Security Stability Fund (FEFSS) in order to “improve profitability”.
The so-called “pension cushion”, since it aims to guarantee the payment of these benefits for 24 months, has recorded a rate of return of 1.69% in real terms over the last decade, which is generally lower than inflation. In fact, according to the Green Paper, between 2014 and 2023, the rate was “3.55% in nominal terms and 1.69% in real terms”.
Socialist governments have begun to distribute tax revenues to strengthen the financing of the FEFSS. Between 2017 and 2023, consignment revenues accounted for around 13% of total revenue. “Increasing profitability will allow the Fund to free itself from its current dependence on direct and indirect financial transfers, which will have a positive impact on the management of the social security budget,” experts say.
Author: Raquel Oliveira
Source: CM Jornal
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