The Brazilian government, through the Instituto Nacional do Seguro Social (INSS), will begin reimbursing retirees and pensioners who were victims of unauthorized associative fee deductions starting July 24, 2025. This initiative follows a fraud scheme that affected around 1.8 million beneficiaries between March 2020 and March 2025. The reimbursement will be made in a single installment directly into the beneficiaries' accounts, corrected by the IPCA inflation index, and payments will be processed daily in batches of approximately 100,000 people, continuing until all cases are resolved. The Supreme Federal Court (STF), led by Minister Dias Toffoli, homologated the government's agreement to ensure the restitution is swift and efficient, authorizing payments outside the fiscal ceiling. The agreement was presented by the Advocacia-Geral da União (AGU) and involved coordination among the Ministry of Social Security, INSS, the Public Prosecutor's Office, the Federal Public Defender's Office, and the Brazilian Bar Association. The government plans to allocate a credit of R$3 billion through a provisional measure submitted to Congress to fund the repayments. Beneficiaries must voluntarily adhere to the agreement, which can be done via the Meu INSS app or at post offices. President Luiz Inácio Lula da Silva publicly called on retirees and pensioners to participate in the reimbursement process, attributing the fraud to the previous administration. Measures to prevent future frauds include mandatory biometric authorization for discounts and stricter regulations on associational agreements. The restitution plan aims to avoid judicial litigation by providing a direct and transparent reimbursement mechanism for the affected beneficiaries.
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