INSS has 130 thousand reports of undue discounts from retirees

A flood of complaints about undue discounts on the payslips of retirees and pensioners by non-profit associations has forced the National Social Security Institute (INSS) to intensify inspection of technical cooperation agreements with these entities.

The institute has accumulated 130,000 complaints about unauthorized discounts from Social Security policyholders. The number is equivalent to 2% of the total number of members of entities linked to the INSS, around 6.5 million in the country.

The allegations involve irregularities in associations, such as fraud in retirees’ signatures for their memberships or even their absence, in addition to the use of “fake people” (front people or entities) of businesspeople to sign contracts.

This led the Minister of Social Security, Carlos Lupi, to speak out and assure that the body “will act tough against fraud and irregularities”. An ordinance, published on March 15, created new rules for affiliation with entities to make improper transfers more difficult. But it is far from being enough.

On Wednesday (3), the president of the INSS, Alessandro Stefanutto, stated that internal procedures were opened to investigate six entities and that the evidence discovered will be forwarded to the Federal Police.

Currently, there are 29 associations aimed at retirees affiliated with the INSS, which are responsible for registration, payroll deduction and transfer of amounts. The entities have access to policyholders’ contact information to offer services, which include legal, financial and health assistance, as well as benefits such as discounts at pharmacy chains, coverage for medical exams, residential services and funeral assistance.

The monthly fee can only be deducted directly from the salary sheet, as stated in the agreement, if the membership is accepted by the beneficiary.

That’s not always what happens. Memberships are often made without authorization from retirees. Many even claim to have not accepted the charge and are being discounted. Others say they hired a service and, amid the signed documents, ended up authorizing the discount without realizing it.

Readers denounce arbitrariness and cancellation difficulties

To cancel the unauthorized discount, the institute recommends the app or website My INSSor even Central 135. But there are complaints about its operation.

A subscriber to People’s Gazette, who did not want to be identified, was unable to cancel a discount through the app, which did not complete the operation. He reported that R$77.86 was deducted from his pay slip for the Assistance and Charitable Support Association for Retirees, Servants and Pensioners of Brazil, (ASABASP BRASIL).

“But I never joined this union. I don’t need to join a union to receive my retirement, after 43 years of forced contribution to this INSS pyramid”, he wrote to the newspaper.

The report from People’s Gazette contacted ASABASP and the entity responded, in a note, that it was willing to resolve the situation. “The work carried out by us is simply to represent our members in the face of the demands that are the subject of the work carried out by the institution, in addition, to be able to provide benefits that justify the monthly fee paid to the Association”, he stated.

The entity also said that, “if there was any undue discount to the complainant, we will make an immediate refund, including canceling any debt that may exist on your paycheck.”

Headquartered in Rio de Janeiro, ASABASP has existed as a private law institution for around four years. “We have no interest in unduly deducting any discount, so we ask for the right to defense in order to be able to present the debit authorization if there is one, otherwise we will refund it in double amount, as determined by law”, says the note .

Another retired reader revealed to People’s Gazette who was surprised with the same discount amount of R$77.86 on his March pay slip. The favored party was ABCB, which he discovered, via the internet, was the Brazilian Association of Biblical Counselors.

“I’ve tried to contact you by phone a few times, but each time I’m either left on hold or I hear inexplicable excuses, or I’m even asked to send a photo of me with my driver’s license in a legible way! I don’t even know who they are, imagine if I’m going to answer them,” he wrote in his complaint to the newspaper. “I couldn’t even find out if it would be just this discount and if it would be monthly.”

The 72-year-old retiree, who also preferred not to be identified, was outraged. “Who authorized this discount for policyholders? Who exactly will these resources go to?” he asked. “There are around 39 million retirees in Brazil. Let’s say the average discount is R$20.00. Can you calculate the amount of the waste?”

The ABCB website displays the message “Coming soon”. Links to institutional information fall under “page not found”. The reporter contacted the WhasApp number provided, but received no response.

Discounts generate legal action

It is a fact that many entities, based on the data provided, make automatic deductions, counting on retirees’ lack of attention to pay slips. There are also suspicions of data leaks and purchases by civil and financial organizations.

With the difficulties in canceling the membership and receiving a refund, the legal option remains. The result of this: there are approximately 62 thousand actions being processed against undue charges from associations.

Since January, according to the website’s findings Metropolises, the total number of entities with technical cooperation agreements earned around R$2 billion with contributions deducted directly from the payroll. The number of members exploded and monthly income went from R$85 million in January last year to R$250 million currently.

Survey of the consultation website Complain here points out that the number of complaints on the subject registered an increase in the first quarter of this year that is equivalent to the entire year of 2023 in cases of specific associations.

Ordinance is late and insufficient

The ordinance published in March created the requirement for recognized authorization and biometrics from the insured person for affiliation with entities and mechanisms to facilitate the cancellation of the contribution. It also established the suspension of the agreement for 90 days with entities accused of illicit practices.

For proven cases of fraud, it will be possible to prohibit signing new contracts with the INSS for two years and even ban entities from public contracts.

The ministry’s response was considered important, but late and insufficient. “The INSS could have acted more effectively previously, paying attention to the procedures and flows of agreements”, says Leandro Pereira, legal director of the Brazilian Institute of Social Security Law.

According to him, the ordinance brought more rigor to registration and authorization, but it is necessary to reinforce the criteria for companies to be part of the agreement with the INSS. “Social Security involves a lot of money and thousands of people who need a service door. They are elderly people, more susceptible and there can be no loophole for fraudsters”, he says.

To regulate the authorization of discounts, Social Security should, in the lawyer’s view, implement a tool similar to that of the payroll loan, made by the App My INSS. “Retirees should have the option of authorizing affiliation with entities through the app. Then everything would be registered. Many also hire the service and forget about it”, says Pereira. “It’s a way of providing security for both parties.”