Brazilian Pension Funds Authority PREVIC requests closed pension entities to confirm when participation agreements for federative-sponsored plans became operational

The Brazilian Pension Funds Authority (PREVIC), through its Licensing Directorate, issued an information request to Closed Supplementary Pension Entities (EFPCs) that manage benefit plans sponsored by federative entities, seeking their position on the operationalisation of the relevant participation agreements to meet Article 157 of PREVIC Resolution 23/2023. Under the resolution, EFPCs must notify PREVIC of the start of the entity’s operations, the start of implementation of the administered benefit plan, and, for multi-sponsor plans, the start of operationalisation of the participation agreement, within 180 days of the relevant authorisation or licensing may be cancelled. PREVIC requested the operationalisation date for each participation agreement and, where not yet operational, the reasons, including lack of eligible employees above the remuneration cap, lack of response from the federative entity, operational issues at the federative entity or the EFPC, or other specified factors. EFPCs must also report monthly the federative entities whose participation agreements become operational.