PREVI - the Banco do Brasil Employee Pension Fund, created in 1904, is a closed complementary pension entity whose objective is the institution and administration of benefit plans, and is subject to the norms issued by the Ministry of Social Welfare, through the Complementary Pension Management Council - GCPC and the Complementary Pension Secretariat - SPC.
The resources that PREVI has available are represented by the contributions of its sponsors, essentially Banco do Brasil S.A. , and of its participants, in equal contributions, and by the yields of the investments made with this resources, which must comply with the resolutions issued by the National Monetary Council - CMN.
During the fiscal year of 2006, PREVI conducted various operations in the financial and stock markets with Banco do Brasil and its subsidiary BB DTVM. Furthermore, PREVI has an agreement with Banco do Brasil for the rendering of financial liquidation and custody services for its fixed income and variable income assets, in accordance with CNM Resolution No. 3121/03.4
The management of the investments is conducted in a multifund manner, a situation that characterizes an individualized management of the resources by benefit plan, indicating that the assets are not invested in a collective manner.
With the edition of Law No. 11053 dated 12/29/2004, the complementary pension entities are exempt from corporate income tax as of January 2005.