INSS asks the STF to suspend retirement processes under the so-called "lifetime review"

Reuters - The National Social Security Institute (INSS) has submitted a request to the Supreme Federal Court (STF) to suspend all proceedings based on the so-called "lifetime review" of pensions, which opens the possibility of applying the most advantageous rule for insured individuals in the calculation of benefits.

The federal agency linked to the Ministry of Social Security claims it is currently unable to comply with the court's decision in favor of applying the new rule, which was made last December.

"Despite its full willingness to comply with the decision, there is a material impossibility of review by the INSS at this time, which exceeds its technical and operational capabilities, as well as those of Dataprev," said the INSS in an extraordinary appeal filed with the STF.

"The agreement reached requires changes to 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 incurring useless financial expenses and liability before the control bodies if the review were deemed improper," he added.

The INSS (Brazilian National Social Security Institute) argues that judges in lower courts have been issuing rulings that mandate the immediate application of the "life-long review" and the payment of a new monthly amount, some with provisions for daily fines in case of non-compliance.

"In some cases, judges have even ruled that policyholders should use calculations simulated by systems sold on the internet, which are inaccurate, unapproved, and lack any certification," he stated.

"Besides the risk of collapse in the INSS's administrative activity and the material impossibility of complying with the decision at this time, there is also the risk arising from court decisions that mandate the immediate implementation of the review."

The request also argues that the Supreme Court's judgment from December has not yet been published, nor have the parties involved in the case been notified, which would open the door to changes ranging from modulating the decision to inserting rules and exceptions.

According to the decision made by the STF (Supreme Federal Court), the review may be applied to insured individuals who began contributing to the INSS (National Institute of Social Security) before the publication of a 1999 law.

This law created the social security factor and adopted a transitional rule excluding contributions prior to July 1994, the date of creation of the Real Plan, which resulted in a reduction of benefits for those who suffered a salary reduction as they approached retirement.

The INSS (Brazilian National Social Security Institute) estimates that, in theory, more than 51 million active and inactive benefits would be eligible.

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