Brazil's Continuous Benefit Programme

The Continuous Benefit Programme, or Benefício de Prestação Continuada da Assistência Social (BPC), was launched by the Government of Brazil in 1996 in order to provide older persons and persons with disabilities with a minimum level of income security. The BPC is grounded in the 1988 Constitution and is regulated by the 1993 Organic Law for Social Assistance (LOAS). The BPC is financed by the National Social Assistance Fund and implemented by the Ministry of Social Development and Combat Against Hunger (MDS), while the National Social Assistance Fund is responsible for administering payments.

The BPC is a non-contributory pension scheme available older persons over the age of 64 and those unable to work due to disability. Claimants must also have a family income less than 25 per cent of minimum wage in order to be eligible and, thus, is designed to reach Brazil’s poorest families. As of 2015 the Bolsa Familia Programme's budget was approximately BLR 27.7 billion or USD 8.66 billion. Although the coverage rate of the latter is higher, BPC’s budget is larger as BPC entitles beneficiaries to monthly payments at the level of minimum. According to data of the MDS, in 2011 more than 3.4 million people were beneficiaries of the BPC, of whom about 1.6 million were older persons and about 1.8 million, were persons with disabilities. Empirical evidence on the impact of the BPC has found decreases in the labour force participation of the elders, indicating that the programme makes it possible for poor elders to retire, something that would not have been possible otherwise.

The BPC fulfils rights guaranteed by the 1988 Federal Constitution and regulated by the LOAS. Studies evaluating BPC’s direct impact on poverty and inequality indicate positive results. The programme significantly contributed to the reduced incidence of poverty in Brazil and the programme also plays a relevant role in explaining Brazil’s drop of inequality levels.

 

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