At a virtual event organised by Abrapp on a “multi-door” system for resolving disputes in closed pension entities (EFPC), the Brazilian Pension Funds Authority (PREVIC) director-superintendent Ricardo Pena argued that excessive judicialisation is driving systemic risk for the sector through high costs and slow conflict resolution, and called for wider use of mediation, negotiation, conciliation and arbitration. He linked lengthy court cycles to prolonged financial impacts on plans, including the need for contingency provisioning that can affect results and credibility, and said the sector needs to build a stronger culture of negotiation among managers. PREVIC’s Mediation, Conciliation and Arbitration Chamber (CMCA/PREVIC) has handled 47 cases since its creation, with consensual settlement reached in 91% (43 cases). Pena proposed embedding these mechanisms across the sector’s approximately 1,200 plan regulations, initially by recommending mediation and conciliation attempts before resorting to the courts, and cited UniAbrapp’s September training course as a step to develop negotiation and dispute-resolution skills.
Brazilian Pension Funds Authority (PREVIC) 2025-10-14
Brazilian Pension Funds Authority urges closed pension funds to institutionalise mediation and conciliation to reduce litigation
At an Abrapp event, PREVIC director-superintendent Ricardo Pena highlighted systemic risks from excessive judicialisation in closed pension entities, advocating for more mediation, negotiation, conciliation, and arbitration. He noted lengthy court cycles require contingency provisioning, impacting financial results and credibility. Pena proposed integrating these mechanisms into regulations and emphasized training to enhance negotiation skills.