During 2009, PREVI worked to meet important demands of associates, such as allowing a greater volume of loans and financing.

 

The contributions for Plan 1 remain suspended.

 

For both Plan 1 and PREVI Futuro, a new Mortality Table called AT-2000 foresees greater life expectancy was used. The actuarial interest rate was reduced to 5.5%, down from 5.75%, reconfiguring Mathematical Reserves and bringing more security to associates and planning management. After 2010 the reduction of interest rates will also reduce taxes of loans and financings, which will directly benefit associates.
                                                                                         
In 2009, PREVI sought to establish closer ties with its associates. One of the measures include launching the Investment Profile Program, which allows PREVI Futuro colleagues to choose different investment strategies; active contact with BB workers who are not yet covered by PREVI, creating more than 900 new members; renewing the INSS plan that allowed for hundreds of Plan 1 associates to receive public social security while still receiving PREVI benefits. 

 

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PREVI Simple Loans are still the pension fund loans that present the lowest taxes and lowest administration fees. Besides, simple loans are safe due to the Discharge by Death Fund and also due to the Employee Benefit Plan, through the Liquidity and Delinquency Fund.

 

 

In August we approved better conditions for the concession and renovation of the Plan 1 Simple Loan.  After September, the concession threshold was raised from R$50 thousand to R$75 thousand, the payment deadline was extended from 60 to 72 months and the grace period for renovation was reduced from 12 to 6 paid installments. All associates who had taken out loans before the modifications were allowed to request a new concession without observing any grace period, and the new six-installment deadline will begin only after the new operation.

 

Between September and December 2009, 28,659 operations were conducted. As a result, members received the liquid amount of R$ 557.3 million.

 

 

Since 2009, there has been a new type of loan for members of Benefit Plan 1 in cases of emergency situations in which they cannot wait and are not able to observe the renewal grace period: the Short Term Simple Loan. The borrower may ask for up to R$ 5 thousand, respecting the consignable margin and the individual concession ceiling, with a deadline of up to 12 months.

 

 

After November 2009, new Simple Loan parameters became valid for the PREVI Futuro Plan: the concession ceiling rose from R$ 30 thousand to R$ 35 thousand and the payment deadline, which was 50 months, was extended to 60 months. The renewal grace period was maintained in four paid installments.  

 

From the moment these new conditions became valid until December 2009, 5,220 operations were conducted, resulting in the liquid debt acquittance of R$ 25.3 million.

 

Out of the total sum of investments made by PREVI Futuro, 14% are available for Simple Loans and 1% for mortgages, in abidance to a law that establishes a ceiling of 15% for the sum of these operations. In December 2009, loans and mortgages represented 11.89% of the Plan’s investments, but throughout the year this percentage exceeded the limit and led to the temporary suspension of new concessions.

 

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When reopening real estate financing in Benefit Plan 1 in 2007, PREVI granted 3,260 new mortgages and released the total sum of R$ 499.5 million. Once the demand was met for those who had never requested a mortgage, those who had already liquidated a previous contract were given the possibility to finance their second mortgage.

 

In October 2009, 1,765 Plan 1 members who requested their second mortgage were summoned. When liquidating their first mortgage, participants are automatically classified and after they express interest by calling Customer Service or Call Center 0800 729 05 05, they are quickly summoned.

 

From April to the end of October 2009, Plan 1 borrowers of portfolios with type PCE and GT I-Adherence contracts were given another opportunity to adjust its contracts by assumptions of a new Mortgage Portfolio (Carim), offered in 2003 and 2005. Out of approximately 3 thousand borrowers, 487 chose a contractual adjustment and 453 fully liquidated their contracts.

The real estate financing of PREVI Futuro started at the end of 2008 and, by December 2009, had already contemplated 27 members contracting a total of R$ 3.4 million. This sum corresponds to 0.21% of the Plan’s investments and there are resources available for new concessions until it reaches a ceiling of 1%, as defined in the investment policy.

A credit line is available for members who complete 10 years of PREVI membership.

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For the third year in a row, contribution charges for Plan 1 remained suspended, which represented a real gain for members. The suspension of contributions represents an annual amount of R$ 746,069 million.

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In 2009, after a partnership plan between PREVI and the Brazilian Social Security Institute (INSS), members who enjoyed the Anticipated Private Pension and were already retired by INSS could receive their benefits in the PREVI payroll. 9,227 members received correspondence explaining the situation. Those who decided to join the plan anticipated INSS benefits in up to 15 days and this amount was integrated to their payroll lending limit.

 

 

Throughout the year, campaigns displayed in PREVI communication means sought to increase knowledge of members about payroll-related matters.

 

 

PREVI payroll statements have been available since November at self-service terminals at Banco do Brasil, offering new options for pensioners and retired employees.

 

To conform to environmentally and socially responsible practices, participant may choose to stop the delivery of payroll statements by mail.

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In July, the Investment Profile Program was launched, allowing participants to choose between four options that correspond to different percentages of equity fund applications while adjusting the risk/profit ratio according to participants’ expectations.

 

By the end of December, 2,233 participants elected their preference for one of the available profiles.

 

 

PREVI Futuro received 3,275 new participants in 2009, among employees who starting working in BB this year. Due to a partnership with BB for presenting the Plan to new employees, conducted by GEPES (Regional Human Resource Management, from Banco do Brasil), the Plan’s adhesion percentage has been around 90% among new employees.

 

It is also worth highlighting the adhesion of more than 900 BB employees working since 1998 who had not yet joined the Plan. In order to target these workers, PREVI initiated an active approach by means of Customer Service, showing the advantages of investing as early as possible in the social security plan.