The Brazilian Pension Funds Authority (PREVIC) approved amendments to the rules of the REG/Replan Saldado benefits plan administered by FUNCEF, formalised via an ordinance published in Brazil’s Official Gazette. The approval enables around 54,000 participants and beneficiaries to reduce extraordinary deficit-recovery contributions by 43% through revisions to three deficit recovery plans (2014, 2015 and 2016). The revisions are implemented by reducing future benefits, including cutting the death pension benefit from 80% to 60%, applying age-based duration rules for death pension payments aligned with Brazil’s general social security regime, narrowing certain coverage from retirees and pensioners to retirees only, and changing eligibility for the Benefit Accumulation Fund with minimum ages of 48 for women and 53 for men. PREVIC also reported that FUNCEF’s submission met the requirements of PREVIC Resolution 23/2023, including eight formal conditions, and linked the changes to a BRL 2.7bn reduction in future benefits that will be matched by an upfront contribution from sponsor CAIXA, equating to BRL 5.4bn of a reported BRL 14bn deficit in the FUNCEF defined benefit plan.
Brazilian Pension Funds Authority (PREVIC) 2025-02-27
Brazilian Pension Funds Authority approves FUNCEF Replan Saldado rule changes enabling a 43% cut in extraordinary contributions
The Brazilian Pension Funds Authority (PREVIC) approved amendments to the REG/Replan Saldado benefits plan, allowing 54,000 participants to reduce deficit-recovery contributions by 43%. Changes include reducing future benefits, such as cutting the death pension benefit and altering eligibility criteria, resulting in a BRL 2.7bn reduction in future benefits. These revisions address a BRL 14bn deficit in the FUNCEF defined benefit plan, with sponsor CAIXA contributing BRL 5.4bn upfront.