Brazil Set to Overhaul Pensions That Coddle Retirees but Drain State Coffers

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Brazil Set to Overhaul Pensions That Coddle Retirees but Drain State Coffers
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While Brazil's schools and health clinics are starved of funds, pensions flow liberally to the likes of a former police chief who retired with full pay at 45. 'Isn't it absurd?' the former chief says.

BRASÍLIA—The sole health clinic in Palmital, a central Brazilian town of 3,500 residents, can afford doctors only three days a week and often has no pain killers on hand. “Our state barely has money to pay salaries, let alone buy equipment for the health center,” said the director, Luyza Axhcar.

Meanwhile, Sandra Silveira, a former police chief, retired at age 45 with a pension as high as her last salary. Now 50 and running a restaurant her public-service pension helped her buy, she says the state could put its money to better...

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