Brazilian Pension Funds Authority moves toward joint rules on supplementary pension portability and presses for tax clarifications

The Brazilian Pension Funds Authority (PREVIC) reported progress with the Brazilian Federal Revenue Service and the Superintendence of Private Insurance on a joint Normative Instruction that will set procedures for portability and plan migration across open and closed supplementary pension arrangements, including the transfer of reserves. The joint instruction, foreseen under Article 22-A of Brazilian Federal Revenue Service Normative Instruction 2,209/2024, is intended to define the steps each originating plan must follow when transferring reserves to a destination plan through portability or migration, aligning operational processes with Law 14,803/2024. PREVIC also highlighted unresolved tax-interpretation issues, including whether current retirees and beneficiaries in defined contribution and variable contribution plans can elect a tax regime, which it estimated could affect around 200,000 retirees and pensioners; the Federal Revenue Service indicated it will address questions on the interpretation of §7º-A of Article 11-A of Normative Instruction SRF 588/2005 through a formal consultation ruling. Separately, PREVIC asked the Federal Revenue Service to revisit Consultation Solution Cosit 354/2017, which treats extraordinary deficit-recovery contributions as non-deductible for personal income tax purposes, and has formalised its arguments in a letter.