State spends more on inactive employees and pensioners than on active employees

State spends more on inactive employees and pensioners than on active employees
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The government of the State of Mato Grosso do Sul has spent around 10% more on the payroll of retirees and pensioners compared to active employees. The data appears in the 2024 actuarial evaluation report of the Social Security Regime (RPPS).

According to the document, prepared by Brasilis Consultoria Atuarial, there are 32,030 active civil servants in Mato Grosso do Sul, another 24,685 retirees and 4,336 civil pensioners. There are also military personnel, with 6,082 active, 4,456 inactive and 1,058 pensioners.

Combined, retirees and pensioners receive R$317.232 million, while active employees (active) incur expenses of R$286.838 million per month to the federated entity.

According to the report, the average salary of retirees and pensioners is higher than that of currently working employees. The average number of inactive people is R$ 11,196 thousand; of pensioners, R$9,419 thousand; and for active servants of R$8,955 thousand.

In total, R$604.070 million is allocated to the payroll of 61,051 public employees, both active and inactive.

With the military payroll it is possible to identify the same scenario. Although the number of active employees is greater, as the average salary of retirees and pensioners is higher, the monthly amount paid to the inactive group is higher.

Active military personnel receive, on average, R$9,259 thousand per month, while retirees receive R$11,594 thousand and pensioners, R$8,340 thousand. Added together, the income of retirees and pensioners results in expenses of R$60.490 million per month, compared to R$56.315 million for active military personnel.

Source: Brasilis Consultoria Actuarial

In total, the military payroll reaches R$116.805 million per month.

In an interview with Correio do Estado last month, the Secretary of State for Administration (SAD), Frederico Felini, explained that social security is a problematic issue for all public administration.

“Today, we have, between active and inactive, approximately 80 thousand employees and pensioners. In this year’s budget, there is a forecast of spending more than R$4 billion on state pensions. We are working on containments in these first months of the year, looking for ways to reduce these values.

Currently, the pension deficit in Mato Grosso do Sul is around R$12 billion”, stated Felini in an interview published on March 23.

The secretary also pointed out that the State currently contributes resources beyond its quota to try to contain the deficit.

“The State has been contributing approximately R$3 billion per year more than would be the legal obligation, to contain the increase in this deficit. And this is a discussion that is already being carried out with the state parliament, especially because it is necessary for this to be done legally, with the main aim of not compromising civil servants”.


The contribution to state pensions has been 14% for all employees since 2021. Retirees and pensioners have been protesting for a reduction in the contribution ever since.

The head of SAD said that reducing this rate would compromise fiscal health, the legal responsibility of the State, and could lead to an even greater future hole. “For this reason, the government increased its contribution, as another effort to balance this bill, eliminate the deficit and then discuss reducing the rate”, concluded Felini.

To minimize the impact on inactive people, Governor Eduardo Riedel (PSDB) sanctioned the law that creates social medical assistance for State retirees and pensioners, worth R$300 per month.

The benefit will be for retirees and pensioners of Direct Administration bodies, local authorities and foundations of the State Executive Branch, who receive earnings or pensions from the Mato Grosso do Sul Social Security (MSPREV), up to the value of the INSS ceiling, currently at R $7,786.01. In total, 11,150 (inactive) servers will be covered.

“Governor Eduardo Riedel advised us to think about people with lower salaries. In this way, we created this social medical aid, which is a way of responding to the request”, highlighted the Secretary of Government and Strategic Management, Rodrigo Perez.

The benefit is compensatory in nature and is not included in earnings or pension for any purpose and is not computed for the purposes of calculating bonuses, additional payments or other additions.

The law establishes that if a death pension is granted to more than one dependent, the benefit will be divided proportionally to the shares granted.


The article is in Portuguese

Tags: State spends inactive employees pensioners active employees



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