Investor Presentaiton

Social Security reform: focusing on long-term fiscal sustainability and improving equity of the pension system Social Security Reform ■ The reform plans to consolidate all retirement regimes, converging into a single system. Ten years after the approval (2033) the convergence will start, with the old pension system rules. weighing 50% and the new one 50%. The new system will gradually replace the old one, and the influence of the systems will be modified by 5% each year. So, the new system will fully take effect by 2043. ■ The approved reform gradually increases the retirement age to 65 years ■The minimum amount of worked years to retire stands at 30, although contributing for 35 or 38 years will result in early retirement at 64 or 63, respectively. ■ The calculation for pensions will include the best 20 years of income. ■ Allows current retirees to participate in the labor market and contribute to the pension system, alleviating fiscal pressures and expanding labor supply. ■ Increases benefits for vulnerable groups improving the equity of the system 26 26

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