Brazilian Pension Funds Authority brings into force joint rules for portability and participant transfers across supplementary pension plans

The Brazilian Pension Funds Authority, working with the Brazilian Federal Revenue Service and the Superintendence of Private Insurance, has brought into effect a joint framework standardising procedures for the portability of funds and the transfer of participants and their respective reserves between supplementary pension benefit plans in both the open and closed segments. The Joint Normative Instruction sets procedures, deadlines and accountability for these transfers, aligning with Article 22-A of the Brazilian Federal Revenue Service Normative Instruction 2,209/2024 and addressing implementation needs stemming from Law 14,803/2024. The law allows participants to choose the income tax regime (regressive or progressive) at the time benefits are paid or balances are redeemed, increasing the importance of transferring contribution-history information used to determine the accumulation period and, under the regressive regime, the applicable income tax rate. Under the joint rules, the originating entity is responsible for providing the data required to calculate the accumulation period of the original plan, covering transfers of participants carried out from 1 January 2005.