Caixa may be required to pay BRL 5 billion to Funcef retirees

Caixa Econômica Federal may be required by the courts to pay BRL 5 billion to Funcef (Fundação dos Economiários Federais), a pension fund for bank employees. The request, made by the MPF (Federal Public Prosecutor’s Office) through an injunction in a public civil action filed on Monday (21), aims to cover the shortfall paid today by the fund’s participants.

The request is one of the ramifications of Operation Greenfield, which started in 2016 and ended in 2021. The operation found the loss of political use of pension funds since 2008. According to the MPF in the action, only at Funcef, the deficit reaches BRL 18 billion.

Sought, Funcef said it will not comment on the case and Caixa said it “does not comment on ongoing legal action”.

The intention is that the R$ 5 billion requested from the courts will be used to fund amounts that are currently being deducted from Funcef participants. Depending on the retirement plan or benefit they receive, the payroll deduction to cover the hole varies between 25% and 50%.

Prosecutor Anselmo Henrique Lopes cites in the lawsuit nine cases of disastrous investments made by the fund’s management by decision of directors of Caixa, which is the only sponsor of the pension fund. According to the prosecutor, the scenarios show “reckless or fraudulent management”.

In the action, Lopes recalls the result of Operation Greenfield, which indicates political interference in Caixa Econômica Federal since 2008, causing damage to employees, especially those who are already retired and still contribute to Funcef.

“Instead of fully enjoying the value of earnings after long years of contribution, these retirees, in their old age, have a considerable part of their earnings compromised due to the need to cover the shortfall of Funcef”, says the prosecutor.

The Federal Public Ministry claims that the R$17 billion profit that Caixa obtained in 2021 could be used to pay the R$5 billion requested in the public civil action. “On its own, it would be enough to cover the installments charged to retirees and Funcef participants, who are victims of the crimes mentioned in this action”, he says to Justice.

Created in 1977, Funcef was one of the first pension funds in the country. Today, it has more than R$90 billion in assets and has 140,000 participants. The executive board is made up of six members, three of whom are appointed by Caixa and three by employees.

Board members are empowered to propose investments, which are voted on by the directors. In the event of a tie, the principal appointed by Caixa is the one with the mining vote. Therefore, in the actions, there is evidence of responsibility of the board appointed by the state bank in decisions that led to the loss.

Understand Operation Greenfield

Initiated in September 2016, Operation Greenfield was another investigation, which began in late 2014 from a representation made by the PSDB to the MPF.

The investigation request was based on reports, including those published by the Sheet, In addition to an audit carried out by Caixa Econômica itself, which raised doubts about Funcef’s investments in the companies Invepar, Usina Belo Monte, Sete Brasil Participações SA, Desenvix Energias Renováveis ​​and Eldorado Celulose SA

In November 2015, a report by Previc stated that “even with alerts issued by its technical areas”, Funcef carried out operations with a risk of “serious nature”, which could bring “damage to the entity”.

Based on the Funcef inquiry, the MPF opened other investigations, including Petros (Petrobras Foundation for Social Security) and Previ (Bank of Brazil Employees Pension Fund). At the time, in addition to arrests and depositions, there was judicial kidnapping “of 90 properties, an aircraft, values ​​in bank accounts, shares and shares of companies, securities and other assets and assets of 103 legal and natural persons”.

The Public Ministry analyzed the balance sheets of the funds and concluded that they had, in 2016, an accumulated loss of BRL 50 billion.