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STF Forms Majority to Cancel Life Entire Review and Changes Calculation of Benefits from INSS; See Impact for Retirees.
STF Redefines Benefits Calculation and Turns Game for Retirees
The STF decided this Friday (21) to overturn the thesis that allowed the use of salaries prior to 1994 in the calculation of benefits from INSS. The Court changed the understanding approved in 2022 and rejected the “life entire review.”
The trial takes place in the virtual plenary and continues until November 25. Minister Alexandre de Moraes is leading the case. The decision affects thousands of insured individuals and releases processes that were stalled.
The STF resumed the topic because, in April 2024, it defined that the legislation requires the calculation to be based on salaries after the Real Plan. Thus, the ministers adjusted the old thesis to the current understanding.
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As a result, the formula advocated by retirees becomes invalid. The suspended processes are expected to resume after the conclusion of the trial.
STF Changes Understanding and Forms Majority Against Life Entire Review
Six ministers voted to overturn the thesis approved in 2022. The majority was formed by Alexandre de Moraes, Cristiano Zanin, Kassio Nunes Marques, Luis Roberto Barroso (retired), Cármen Lúcia, and Gilmar Mendes. They stated that the STF has changed its position since the previous ruling.
On the other hand, André Mendonça and Rosa Weber (retired) voted to uphold the retirees’ right to review.
Dias Toffoli, Luiz Fux, and Edson Fachin still need to vote.
Why the Life Entire Review Has Lost Strength at STF
The so-called “life entire review” allowed retirees to request the recalculation of their benefits considering all salaries from their working life, including those before the Real Plan. The thesis offered, in theory, a more advantageous path for those who earned more at the beginning of their careers.
However, in April 2024, the STF decided in another case that the rule of legislation that considers only salaries after 1994 is mandatory. Thus, according to the ministers, it would not be possible to freely choose the most convenient calculation method.
As a consequence, the Court understood that the thesis approved in 2022 was “overcome.”
Moraes Advocates Revocation and Releases Progress of Actions
In his vote, Moraes stated that the previous thesis was “overcome” and that the review should be canceled:
“The thesis is overcome.”
Furthermore, the minister advocated for the immediate release of processes that were suspended by his determination, aligning everything with the recent decision regarding the return of unduly received amounts.
In April, the STF decided that retirees who received excess amounts until April 5, 2024 do not need to return these benefits to the INSS. It was also established that costs and fees should not be charged in these actions.
Billion-Dollar Impact and Thousands of Actions in the Judiciary
The decision is highly relevant for the Union, which estimated a potential impact of up to R$ 480 billion if the review were applied broadly. Additionally, approximately 140 thousand actions are still pending in the Judiciary discussing the topic.
Therefore, the Supreme Court decided to expedite the conclusion of the case and consolidate the new understanding regarding the calculation of benefits.
What to Expect from Now On
The trial continues until November 25, but the majority is already formed. Thus, the trend is that the thesis will be officially canceled and that the calculation of benefits will follow only what the legislation dictates: to consider salaries from July 1994 onwards.
For retirees, the scenario changes radically. Even so, the preservation of the right not to return amounts already received remains guaranteed, as previously defined by the Supreme Court.
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