Petrobras Wants to Create New Pension Plan

Brazil's federal energy company Petrobras (NYSE: PBR) has proposed various measures to reduce the debt of its employees' pension plan, the company said in a statement.

Petrobras' pension fund for employees, Petros, lost 4.5bn reais (US$2.13bn) last year and 5.2bn reais in 2004.

After talks with the workers' unions, Petrobras proposed the creation of a new pension plan that adopts the variable contribution model and handles funds through individual accounts, the company said.

Petrobras also stipulated the unions drop all legal proceedings against the state-run oil company in relation to the pension plan.

Various Petrobras subsidiaries contribute 12.93% of their payrolls monthly to Petros.

Petrobras plans to hire 9,000 workers in the next three years, the company said.

Alongside state-run pension systems, Brazil has both employer-sponsored pension funds such as Petros and private pension funds catering to the general public.

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