Benefits

Benefits paid total R$ 6.1 billion

Benefit Plan 1 retirees and pensioners received R$ 6.1 billion in benefits. During the fiscal year, 2,595 new benefits were granted. The total number of assisted people (retirees and pensioners) is 79,450 (63% of all associates).

Regulation changed to adapt to legislation

Complementary Laws 108 and 109, approved in 2001, required that all pension funds update their benefit plans. PREVI sent the Plan 1 Regulation alteration proposals to the SPC - Complementary Pension Secretariat, which, in May of 2006, issued its approval (with a few modifications) of the submitted text.

One of the main alterations refers to the adoption of Portability, which represents the participant's prerogative to take his accumulated rights to another pension institution, under certain conditions. There were also changes in the criteria for the maintenance of the participation salary, in the case of partial losses in remuneration.

 

Benefits accumulated a 155.2% readjustment

The PREVI readjustment index in June of 2006 was 2.7%, corresponding to the accumulated INPC between June of 2005 and May of 2006. It was the tenth readjustment since the alteration of the Benefit Plan 1 Regulation in 1997. Since that year, the PREVI benefits have accumulated a readjustment of 155.2%. During the same period, the INSS readjusted its benefits by 105.4%.

PP readjustment changed with the new Regulation

The new Benefit Plan 1 Regulation changed the form of readjustment of the PREVI Part. Now, the PP is readjusted at the same time as the salaries of the active participants, in accordance with the salary variation observed between the two base dates. Before, the PP readjustment was performed based on the Plan indexer (currently the INPC). With the new form of readjustment, the difference between the PP value and the evolution of salaries is avoided