Understand how the new INSS payroll card that will be offered in September

The 5% increase in the consignable margin for INSS (National Social Security Institute) retirees and pensioners is intended for a new type of credit, the payroll-deductible benefit card, which should be offered in September by institutions such as BMG and Olé, from the Santander Group.

The card works like a payroll-deductible credit card, with a direct discount from the payroll, but it is distinguished by obligatorily offering funeral assistance and life insurance in the minimum amount of R$ 2,000 each and discounts at affiliated pharmacy chains.

According to Febraban (Brazilian Federation of Banks), the institutions that offer the payroll-deductible benefit card are BMG, Master, PAN, Santander, Daycoval and Facta.

Life insurance and funeral assistance policies are valid for two years from the date the card is contracted, its use for purchases or withdrawals or the last payroll deduction, there is no age limit and is valid regardless of the cause of death.

Which banks offer the payroll benefit card?

BMG informs that the card can be hired by INSS retirees and pensioners from mid-September, without annual fee, with the minimum amount of the invoice deducted from the payroll, withdrawal available of up to 70% of the card’s limit, insurance life, free funeral assistance, discount at pharmacies, free withdrawals and up to 40 days to pay the bill.

If the invoice exceeds 5% deducted from the payroll and is not paid, the rate is 3.06% per month, complying with the maximum interest defined by the INSS.

The bank already offers the card to active or inactive public servants of affiliated institutions in Minas Gerais and São Paulo, but with different rates and without life insurance and free funeral assistance, exclusive to INSS retirees and pensioners.

The company Olé, of Grupo Santander, declares that it will launch the product in September. Banco Pan says it is preparing to work with the INSS benefit card for retirees and pensioners, but is awaiting “regulatory, administrative and operational requirements”.

The Master, Daycoval and Facta institutions did not respond to contacts from the Sheet.

Is it worth having a payroll benefit card?

Financial planning specialist Cintia Senna says she doesn’t see any advantages in taking out a payroll-deductible benefit credit card.

“The person will only resort to this modality, thinking coldly, when they have already used the other options and are 40% committed and want another 5%.” The expert believes that, in this case, taking credit is postponing the resolution of the problem.

“Taking only the loan will not solve the main cause of the problem, which is: why do I need another amount, another discount on the benefit? And so I will continue in this process, in this loop”, he says.

Senna also warns that care must be taken with the amount spent on the card, as only the minimum invoice amount, corresponding to 5% of social security income, will be covered by the benefit. “The rest will have to be used my money,” he recalls.

As for insurance, she says that it is possible to buy insurance for R$ 2,000 at affordable prices, without having to be tied to the commitment of the social security income.

What is assignable margin increase?

The INSS assignable margin is the portion of the benefit of retirees and pensioners that can be committed to loans, allowing a discount directly from the payroll.

This amount increased from 40% to 45% of social security income with a law passed in early August. The 5% increase can only be used for expenses and withdrawals with the consigned benefit card.

The other limits remain, with 35% for exclusive use in loans, financing and leasing, and 5% to cover payroll-deductible credit card expenses.