Portuguese 
English 
Spanish 
4 min of reading 
0 comments 
Congress Committee Approves Billion-Dollar Fund to Reimburse Retirees and INSS Pensioners Who Suffered Undue Deductions; Measure Involves Investigation by CGU and Federal Police on Scheme That Diverted About R$ 6.3 Billion.
The Joint Committee on Budget (CMO) of the National Congress approved, on October 21, 2025, Provisional Measure No. 1,306/2025, which releases R$ 3.31 billion in extraordinary credit to reimburse retirees and pensioners of the INSS who had undue deductions from their benefits.
The text now goes to a vote in the plenary of the Chamber of Deputies and then in the Federal Senate.
According to the government, the objective is to ensure the continuity of payments initiated this year, as part of an agreement ratified by the Supreme Federal Court (STF).
-
The report shows that the center of the global economy is shifting to the South, with BRICS and emerging markets growing above the global average while Europe barely reaches 1% and the United States spends trillions on wars.
-
BRICS countries lead the world ranking in hours worked, with India, China, Russia, and Brazil at the top of the list, while Germans work nearly a thousand hours less per year and earn much more.
-
Lufthansa shuts down subsidiary CityLine immediately, cuts 2,200 jobs overnight, and leaves 27 jets grounded amid strikes and rising jet fuel prices.
-
The government will pay R$ 1.20 for each liter of diesel that Brazil imports and for the first time in history requires distributors to reveal how much they profit — those who hide their margins will face fines of up to R$ 500 million…
Reimbursement to Victims of Fraud in INSS
The funds will be used to return amounts irregularly charged by associations and entities suspected of fraud.
According to the Office of the Comptroller General (CGU) and the Federal Police (PF), these organizations handled about R$ 6.3 billion in unauthorized deductions between 2019 and 2024.
The government’s plan provides for the amounts to be returned directly to the harmed policyholders, while the Executive seeks reimbursement from the investigated entities.
The PM complements a previous measure from July 2025, which also opened extra credit for the same purpose and marked the start of payments to those who joined the agreement validated by the STF.
Application of Resources and Criticisms in Congress
The rapporteur of the measure, Senator Esperidião Amin (PP-SC), emphasized the importance of expediting the reimbursements but criticized the absence of this expense in the 2024 Budget.
“It cannot be argued that the fraud was unknown, nor can it be defended that the amount was not estimable,” the parliamentarian stated during the session.
The report further stipulates that the government does not account for the amounts as primary revenue, complying with the STF’s understanding, which removed the amount from the calculation of the fiscal target.
Thus, all the credit must be exclusively allocated to the payment of the harmed retirees and pensioners.
How the Scandal of Undue Deductions Came About
The frauds were uncovered in operations by the CGU and the Federal Police, which identified the charging of fees by entities linked to retirees, without the beneficiaries’ authorization.
A survey by the CGU indicated that 97% of the victims reported not recognizing the charges.
The scheme led Congress to establish a Mixed Parliamentary Inquiry Commission (CPMI) to investigate responsibilities.
During the vote on the PM, Representative Alencar Santana (PT-SP) recalled that the scam began in 2019, during the previous administration, and was only revealed after federal investigations.
“These illegal deductions directly affected millions of Brazilians who live on their pensions. It is fair that the reimbursement is made as soon as possible,” declared the parliamentarian.
According to sources from the Ministry of Social Security, led by Wolney Queiroz, the INSS is preparing adjustments to internal systems to expedite the return of funds as soon as the measure is definitively approved.
Technicians from the ministry assert that the payment schedule depends on the full release of credit and the validation of each beneficiary.
Impact and Reach of the Reimbursement
According to data presented to the CMO, up to 2.5 million beneficiaries may be eligible, depending on adherence to the agreement ratified by the STF and budgetary confirmation.
The reimbursement is intended for insured individuals who formally contested the deductions and authorized the administrative return.
The amounts returned correspond to association fees improperly charged on payroll.
The INSS advises beneficiaries to check their statements and file complaints if they identify unrecognized deductions.
After contestation, the insured individual is included in the system that organizes the payment queue.
Discussion on the Fiscal Impact
The debate surrounding the PM also involves how the government should treat reparatory expenses in the fiscal result.
Public finance experts consulted by the press assess that the extraordinary credit is compatible with the STF’s understanding, which excluded the expense from the primary result target.
This measure, according to technicians, avoids distortions in fiscal targets and guarantees transparency in the use of resources.
The federal government stated in a note that the return aims to “correct losses suffered by retirees and pensioners” and that the recomposition of the treasury will be demanded from the entities under investigation.
The CGU stated that there are various administrative processes underway against associations and companies involved, and that new investigations may be opened as the investigations progress.
Expectation of Payment and Public Reaction
The Executive’s forecast is to initiate a new round of payments still in December, if the text is approved in Congress in time.
The release is seen by analysts as a financial relief for retirees, especially during a period of higher household expenses, like the end of the year.
However, the government has not officially confirmed specific dates for the transfer.
The MP 1,306/2025 will proceed to a vote in the Chamber’s plenary and then to the Federal Senate.
After approval, the text will be forwarded for presidential sanction.
The Ministry of Social Security informs that payments will occur in a staggered manner and that new schedules will be published as soon as budgetary availability permits.
While Congress decides the next steps, millions of beneficiaries await the return of improperly charged amounts.
The lingering question is: how will the government ensure that new frauds do not affect retirees in the future?
Seja o primeiro a reagir!