President Jair Bolsonaro (PL) criticized this Friday (11) the possibility of guaranteeing that INSS (National Social Security Institute) retirees conquer, in court, the right to life review.
“They want to break Brazil. Decision by the Supreme Court [Tribunal Federal]”, Bolsonaro told supporters in front of Palácio da Alvorada.
The review had been approved by the STF in the virtual plenary, but a prominent request made by Minister Kassio Nunes Marques should take the trial to the physical plenary, which was interpreted by other members of the court as an attempt to manipulate the final result in favor of the government. .
The president compared the case to the growth of the government’s bill to pay court sentences during his administration. “Precatórios, they took from the [governo] Fernando Henrique [Cardoso] and put it in my lap. Welfare is the same thing,” the president said.
Charged by supporters, he said he was not against the review but said he would not discuss the matter. “I’m not against the review, no. Who will pay? Do you have money?”, said the president. “I’ll think about it, yes. I’m not going to discuss this matter, the debt is more than R$300 billion. Precatórios gave R$80 billion”, he also declared.
The president did not explain the calculation of an impact of R$ 300 billion for the review of benefits.
But the INSS Benefits Board estimates that a decision in favor of retirees could cost BRL 360 billion over 15 years. “Considering retroactive payments, respecting the five-year prescription, we would have the approximate amount of R$ 120 billion, of immediate payment; and projecting an average life expectancy of the beneficiaries – with active benefits – in 15 years, we would have the estimate of R$ 360 billion”, says a note from the folder signed on the 4th.
The lifetime review is a lawsuit in which retirees ask that all their contributions to the INSS, including those made before the creation of the real, in 1994, be considered in the calculation of the average salary to increase social security income. The correction can result in arrears of more than BRL 100,000.
The inclusion of old salaries in retirement began to be requested in court to try to correct a distortion created by the 1999 Social Security reform. At the time, the transition rule applied to INSS insured persons created two formulas for calculating the average salary used in the calculation of pension benefits.
According to the rules, those who were already insured by the INSS until November 26, 1999 would have their average salary calculated on the 80% greater contributions made from July 1994. As for workers who started their contributions from November 27, 1999 , the permanent rule established that the average salary would be calculated with the highest salaries of the entire contribution period.
The new rule harmed policyholders who had many contributions paid in larger amounts to the INSS before the implementation of the Real Plan. Upon obtaining the right to retire under the transitional rules, the worker had his benefit reduced, as he was prevented from earning higher wages than before July 1994.
In its defense, the INSS tried to argue, in the 2021 judgment, that the review would bring a breach of R$ 46 billion to the public coffers in ten years, which was used in the negative vote of Nunes Marques. At the time, Ieprev (Institute of Social Security Studies) asked for the suspension of the trial, requesting details of the amounts. For experts, the review is limited and will not bring these expenses
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