Brazilian Pension Funds Authority (PREVIC) published a statement to counter what it views as a misleading interpretation of media reporting on deficits in Brazil’s closed complementary pension system, and to update the public on the sector’s solvency position. Using partial 2025 data through November, PREVIC reported an actuarial surplus of BRL 10.4 billion for the regime, which comprises 264 closed pension funds and 1,131 active pension plans. Results were positive across all supervisory segments (S1 to S4), with segment surpluses of BRL 4.7 billion (S1), BRL 3.7 billion (S2), BRL 1.3 billion (S3) and BRL 523.7 million (S4), plus BRL 2.9 million for non-segmented entities. At plan level, 453 plans showed an accumulated surplus of BRL 37.4 billion, 447 were in balance and 231 recorded deficits totalling BRL 27 billion; PREVIC characterised deficits and surpluses as cyclical under the capitalisation model and noted that defined contribution plans are not technically classified as deficit or surplus. It also referenced existing treatment of deficits under applicable rules, including CNPC Resolution 30/2018, and flagged supervisory expectations for funds to prepare for a lower interest-rate environment through portfolio diversification and stronger investment capabilities, while stating it does not recommend specific portfolios. PREVIC reiterated the need to modernise the solvency rule, with a proposal under analysis by the National Council of Complementary Pensions (CNPC), to distinguish structural from cyclical imbalances and tailor responses to avoid repeated recovery plans when the imbalance is conjunctural.

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