Lifetime review: STF postpones appeal judgment – 04/01/2024 – Market

The STF (Supreme Federal Court) postponed the judgment of the so-called embargoes declaring the whole life review, which allowed INSS (National Social Security Institute) retirees and pensioners to include old salaries in the calculations of their benefits to increase their monthly income.

Embargoes for clarification are a legal instrument in which points that were not clear in a trial are questioned. The session to analyze them would be held this Wednesday (3).

The ministers will judge the Union’s appeal against the thesis, approved in December 2022 and overturned by the court on March 21 when judging two actions from 1999.

It will be up to the STF collegiate to decide what will happen with the actions of those who went to court to have the correction, which have been stopped since last year.

Furthermore, the ministers will have to take a position on who has already won the case in the Judiciary. In this case, the question is whether anyone already receiving a higher pension will have to return amounts to the federal government.

How was the trial that overturned the whole life review

On March 21, by 7 votes to 4, the STF overturned the court’s own understanding that authorized the review of the entire life. The turnaround occurred during the trial of an action that had been stopped for 25 years.

When judging the 1999 pension rules constitutional, 7 of the 11 ministers understood that the transitional rule of the Fernando Henrique Cardoso (PSDB) government’s pension reform is mandatory and that retirees do not have the right to opt for a rule other than the permanent one, even if more advantageous, thesis proposed in the review of the whole life.

UNDERSTAND THE WHOLE LIFE REVIEW

This is a legal process in which INSS retirees ask to include old salaries — paid in currencies other than the real — in the retirement calculation.

The reason why the right to correction is being discussed is the approval of law 9,876, of 1999, which created the social security factor and changed the rule for calculating the average salary, the basis of INSS benefits.

The FHC government’s pension reform introduced a transition rule that benefited new insured people and harmed some of those who were already in the job market.

By law, those who joined Social Security until November 26, 1999 have their average salary calculated with the 80% of the highest contributions from July 1994, when the Real Plan came into force.

But those who started contributing to the INSS from November 27, 1999 and reached the conditions to retire by November 12, 2019 have the average calculated on the 80% highest salaries of their entire working life — therefore, their entire life .

Throughout the process, the INSS argued that approval of the review would affect the fiscal balance of the pension system.

According to the fiscal risks annex of the PLDO (Budget Guidelines Bill) of 2024, the impact was estimated at R$480 billion.