The Brazilian Pension Funds Authority PREVIC published a year-end review of developments in Brazil’s closed supplementary pension regime, highlighting rule updates, supervisory actions and coordination with other regulators and government bodies. The update also points to pending changes expected to move forward in 2026, notably a new solvency framework for deficit funding and surplus use and an overhaul of the sanctions regime. Key 2025 measures include a second December update to PREVIC Resolution 23 following a public consultation, covering the Administrative Management Plan, investment-related requirements, economic and environmental, social and governance criteria, and service expectations for participants and beneficiaries, including guidance on communications, use of plain language, creation of an ombudsman function and implementation of an integrity programme. PREVIC also highlighted the Monetary Council’s update of investment guidelines through CMN Resolution 5,202/2025, which broadened permitted investment options, tightened limits and conditions for investment funds and private equity funds, and removed the obligation to divest real estate holdings by 2030, alongside new requirements for closed pension funds to incorporate sustainability factors into risk analysis and disclose related impacts. Supervisory and case-related milestones included the end of PREVIC’s intervention in Portus on 30 June after a mediated agreement involving nine sponsoring companies and 20 unions and associations, and authorisation of a BRL 210 million surplus distribution by Valia after negotiations led by PREVIC’s mediation, conciliation and arbitration chamber, supported by regulatory changes enabling payments to more than 90,000 participants, beneficiaries and pensioners. Looking ahead, PREVIC reported that it has sent the National Council for Supplementary Pensions a draft resolution to change the solvency model by introducing a “solvency index”, setting tolerance bands of 25% above and below a 100% solvency target to be reached over a transition period of up to eight years, and allowing up to three years before requiring new deficit funding plans under defined parameters, while recommending a cap of up to 35% of salary or benefit for normal plus extraordinary contributions. PREVIC also noted that an update to Decree 4,942/2003 to establish a new sanctions regime is with the Civil House for signature, with expectations that it could be resolved in 2026.

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