Lupi says the Ministry is “acting firmly” against INSS fraud

The Minister of Social Security, Carlos Lupi (PDT), said that the department is “acting firmly” against fraud committed by partner entities of the National Social Security Institute (INSS) accused of undue deductions from retirees’ payrolls.

“We recently issued an ordinance that curbs these frauds, creating mandatory recognized authorization and biometrics from the insured, which makes it easier to cancel the contribution of anyone who wants, at any time,” said minister Carlos Lupi to the newspaper Metropolisesthis Wednesday (27).

The ordinance cited by the minister provides for the suspension of the agreement signed by the INSS with entities accused of the practice and harsher penalties for proven cases of fraud.

The punishments range from the suspension of discounts for 90 days and of new contracts with the INSS for two years to the banning of entities from public contracts. The ordinance was published on March 15th.

When authorized by the INSS, these associations can deduct contributions directly from retirees’ payrolls through agreements that provide for the amount to be deducted and the benefits that will be offered in exchange to members.

In total, 29 associations are authorized by the INSS to provide “associative monthly fee discounts” for retirees and pensioners.

The minister spoke on the topic after the Metropolises reveal a series of associations accused of making undue discounts on retirees’ payments.

According to the newspaper, between 2023 and 2024, the number of members of these associations exploded and the entities’ revenue went from R$85 million, in January last year, to R$250 million currently.

Furthermore, according to the newspaper, the associations respond to more than 60 thousand lawsuits for moral damages in which retirees say they were members without authorization.