The study consists of two volumes, thefirst volume contains a detailed summary of the reportfindings, and policy implications, and, the second volume,the Policy Report, contains discussions on policyrecommendations for each of the components of the Braziliansocial security system. An overview on the dimensions of thesocial security challenge, reviews the system components,revealing unsustainable fiscal imbalances, andadministrative weaknesses in both the unreformed GeneralRegime for Social Security (RGPS), and the Pension Regimefor Government Workers (RJU), with large tax-relateddistortions, and labor market inefficiency. Thus the goalsof Brazil's reforms are to reduce fiscal deficits,lower actuarial imbalances, increase equity andredistribution, reduce collateral inefficiencies, andfacilitate growth of funded pensions. The study impliesthere is no recourse for the country, but to lower the high,uniform replacement rates (experience suggests that rateshigher than 40-70 percent, cannot be sustained) and, spellsout that the key to effective reform of social security, iswidening the debate to include potential winners from thesechanges, particularly the private sector, the young, and thepoor. Policy recommendations suggest, that the adverseequity effects of RGPS reforms, should be widely publicizedto generate political support for deeper RJU reform.
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