In an interview with Valor Econômico, the Brazilian Pension Funds Authority (PREVIC) outlined policy proposals to change when closed pension funds must adopt deficit recovery plans, revise the administrative sanctions framework for pension fund misconduct, and pursue a technical cooperation agreement with the Federal Court of Accounts to reduce overlap in supervision. On deficit recovery, the proposal would amend National Council for Complementary Pension Resolution 30/2018 to allow funds to accumulate up to three years of deficits before implementing a deficit recovery plan, provided the solvency ratio does not fall below 75% and the deficit is considered cyclical. PREVIC also backed a revision to Decree 4,942/2003 to expand violation typologies from one to 12 and calibrate penalties by severity, alongside raising fines from BRL 84,000 to a range of BRL 800,000 for individuals up to BRL 4.2 million in cases involving intent, fraud or gross error. The draft decree would also introduce the concept of a “regular management act”, aligned with a Federal Court of Accounts decision, to distinguish good-faith acts within legal duties from sanctionable conduct. The deficit-rule proposal remains under discussion in PREVIC’s National Actuarial Commission and is intended to be approved by PREVIC’s board and submitted in October to the National Council for Complementary Pension for deliberation. The sanctions decree proposal is with the Presidency’s Civil House.

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