INSS asks the STF to suspend retirement processes under the so-called ‘lifelong review’

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The National Institute of Social Security (INSS) submitted to the Federal Supreme Court (STF) a request for the suspension of all processes that are based on the so-called “lifelong review” of pensions, in which the possibility of applying the rule is open more advantageous for policyholders in calculating benefits. The federal autarchy linked to the Ministry of Social Security claims that it is unable to comply at the moment with the decision in favor of applying the new rule, which was taken in December last year by the court. “Despite its total willingness to comply with the decision, there is a material impossibility of review by the INSS at this time, which goes beyond its technical and operational possibilities, as well as that of Dataprev”, said the INSS in an extraordinary appeal filed with the STF. “The understanding reached demands the alteration of systems, routines and processes that have a budgetary impact of millions of reais, an investment that was not justified while the thesis was under discussion, under penalty of useless financial expenses and accountability before the control bodies in case the review was deemed undue”, he added. The INSS argues that lower court judges have granted decisions that determine the immediate application of the lifetime review and the payment of a new monthly amount, some with a daily fine in case of non-compliance. “In some cases, judges have even determined that calculations simulated by policyholders be used in systems sold on the internet, which are imprecise, non-approved, without any certification,” he said. “In addition to the risk of collapse in the administrative activity of the INSS and the material impossibility of complying with the decision at this time, there is also the risk arising from court decisions that determine the immediate implementation of the review”. The request also considers that the judgment of the December STF judgment has not yet been published and neither have the parties to that process been subpoenaed, which would open the way for changes that would range from a modulation of the decision to the insertion of rules and exceptions. According to the decision signed by the STF, the revision may be applied to insured persons who started to contribute to the INSS before the publication of a 1999 law. This law created the social security factor and adopted a transition rule excluding contributions prior to July 1994 , date of creation of the Real Plan, which resulted in a reduction in the benefit for those who suffered a salary reduction when they approached retirement. The INSS calculates that, in theory, more than 51 million active and inactive benefits would be eligible.

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