Old Age Pension Scheme for Military Personnel

Mandatory insurance

• Police, firefighters, and military personnel.

General finances

• Partly PAYG-financed from insurance contributions of the active personnel.
• Partly tax-financed by public transfers of public entity (at local/state level).

Contribution rate

• Fixed share of monthly gross earnings (10.5%) of the active personnel paid by employee; without contribution assessment ceiling.

• Organised and administered by the respective federative entity.

• There is no minimum retirement age.
• Minimum insurance period of 35 years (with at least 25 years of service).
• Compulsory retirement between 50 and 70 years of age, depending on the rank inside the military.

Pension benefits

• Full benefit equal to the last salary before retirement.
• One-time supplement: upon retirement, the person receives a single payment equal to 8 times the last salary.

Taxation and social security contributions

• Pension benefits are subject to income tax; benefits up to BRL 1,903 are exempt from income tax for retired persons older than age 65.
• Retired persons do not have to pay social security contributions on pensions received.