Although the scheme was abolished in 2005, transitional provisions allow eligible former politicians to continue receiving lifetime pensions.
Lifetime pensions granted to former politicians and judges of the Constitutional Court will represent an expenditure of approximately €10.2 million in 2027, although the scheme was abolished more than two decades ago, Executive Digest reports.
The amount represents a 4% reduction compared to the projected costs for 2026, but the expenditure is expected to remain around 15% above the values recorded in 2019.
According to Correio da Manhã, the figures are included in the budget of the Caixa Geral de Aposentações (CGA), integrated into the proposed State Budget for 2027 (OE2027).
Between January and August 2026, the State spent approximately €6.1 million on the lifetime monthly allowance (SMV), a benefit granted to former political figures and judges of the Constitutional Court. Full-year expenditure is projected to reach €10.6 million.
Lifetime beneficiaries
The latest monthly list identifies 281 beneficiaries entitled to the lifetime monthly allowance. Of this list, 228 receive the benefit monthly, while 23 have their payments fully reduced. The remaining beneficiaries are covered by partial reductions or suspensions.
The projected 4% reduction for 2027 could result from a decrease in the number of beneficiaries receiving actual payments due to suspension or reduction of benefits.
Unlike traditional retirement pensions, the lifetime monthly allowance does not result from contributions deducted from the beneficiaries’ salaries, as the amount awarded is determined by the remuneration associated with the beneficiary’s last political office.
Highest subsidy recipients
According to Correio da Manhã, one of the highest subsidies is awarded to Jorge Alberto Rangel, former deputy secretary of the Macau government, who is entitled to 6,633 euros gross per month. António Guterres, former Portuguese Prime Minister and current Secretary-General of the United Nations, receives a gross monthly allowance of €4,138. João de Deus Pinheiro, former Minister of Foreign Affairs, receives a gross allowance of €3,967.
Some former government officials have chosen to voluntarily suspend receiving these subsidies, including former Prime Minister António Costa and former ministers António Vitorino, Marques Mendes, and Rui Gomes da Silva.
Scheme abolished two decades ago
The granting of new lifetime monthly subsidies was abolished in October 2005, during the government led by José Sócrates. However, the decision included a transitional regime which safeguarded the situations of former politicians and judges of the Constitutional Court who met the stipulated conditions until 2009.
Despite the scheme ending more than 20 years ago, the Portuguese Government continues to ensure payments to beneficiaries who have retained that right.
These existing entitlements explain why the allowance continues to represent an annual expenditure of more than €10 million, despite the abolition of new entitlements.
Proposal to abolish the scheme
In February 2026, Parliamentary Initiative 402/XVII was introduced, seeking to abolish lifetime allowances for eligible former political officeholders.
The proposal sought to gradually phase out payments to existing beneficiaries over three years, reducing allowances to 60% of their original value in the first year, 40% in the second and 20% in the third, before abolishing them entirely.
The proposal was supported by Chega, the Liberal Initiative (IL), CDS-PP and the Left Bloc (BE).
The Social Democratic Party (PSD), Socialist Party (PS), Livre and Portuguese Communist Party (PCP) voted against it, while People–Animals–Nature (PAN) and Juntos Pelo Povo (JPP) abstained.
The proposal therefore did not pass and was rejected by Parliament on 3 July 2026, leaving the existing legal framework unchanged.