Public pensions system - mandatory system funded by social security contributions paid by the company (20% based on compensation) and by the employees (progressive rates up to 14% - effective maximum 11.69% - with a ceiling).

Private pensions system - considered an additional and voluntary system, in which it is possible to have defined contribution plans (most of them) and defined benefit plans (these are the exception).

Risks related to the public pensions system are verified during tax due diligence. Deal timing issues are usual where there are private DB pension plans.

Disclaimer: Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.