INSS spent millions on benefits above the ceiling and to dead people, says TCU

​The INSS (National Social Security Institute) spent around R$80 million improperly to pay benefits in 2021, according to a report by the TCU (Union Court of Auditors). Among the disputed payments are benefits above the social security ceiling and amounts released to those who have died.

A survey by the court points out that at least BRL 27 million were paid to deceased policyholders and BRL 52.6 billion were spent to cover social security benefits above the ceiling, which was BRL 6,433.57 in 2021.

In the process itself, the institute came to position itself on values. At the end of the report, however, the TCU gave another 150 days for the agency to respond again.

To reach the R$ 27 million paid to those who have died, the TCU made a cross between INSS platforms, the FRGPS (General Social Security Fund) payroll and the national death control system. Initially, payments were identified to 8,559 dead in 2021.

In a first response, the institute said its systems had identified only 668 cases as active benefits. The others would already be blocked, ceased or suspended. Payment suspension is when the amount is not paid in a given month and can be released at any time. In the block, there is the impossibility of withdrawal for a longer period, until the right to income is proven, and the assignment is the final cut.

One of the INSS’s justifications to the court is that part of these payments occurs, in general, to comply with a court decision. In other words, the insured person was entitled to the benefit, he stopped receiving it when he was alive, went to court, won the case and, when it was implanted, he had died.

The reasons for improper implementation would be delay and lack of information from the registry offices on deaths. The TCU also points out that it would be the institute’s responsibility to resolve this issue in order to expedite information on the deaths of people who receive social security benefits.

The INSS pointed out internal audits that would have also identified the payment of R$ 702.2 thousand in previous years to those who have died and that the cases have already been forwarded to the processing of administrative collection and recovery of values.

Benefits above the INSS ceiling

Initially, the TCU had indicated the payment of BRL 53 million for social security benefits above the ceiling, but this amount dropped to BRL 52.6 million during the investigation. The reason is that, by law, there are exceptions that guarantee payments greater than the Social Security limit, such as a pension to ex-combatants and a 25% increase in disability retirement, for example.

In the end, the report pointed out 1,820 benefits above the ceiling paid improperly in December 2021. The average amount released was R$8,947.7, R$2,514.13 above the maximum amount.

According to the court, the institute pays benefits to more than 36 million policyholders per month. In 2021, BRL 762 billion were spent on social security benefits.

Surveillance needs to be intensified, says expert

The TCU report also told the INSS to intensify the inspection of the payroll of benefits and its own accounting to avoid undue payments. Also during the process, the institute stated that, in 2021 alone, 10,280 processes were initiated to monitor social security benefits with suspected irregularities.

Of this total, 6,132 were completed and half of them were actually irregular. There were still 145 partially irregular and the rest paid due.

For lawyer João Badari, a specialist in Social Security, inspection is essential to preserve taxpayers’ money. “The more intense this inspection, the greater the Pension cash values ​​will be. And this reflects in benefits to the insured, since Social Security is paid for by those who pay contributions”, he says.

When contacted, the INSS did not respond.