Brazil Blocks R$2.8 Billion in INSS Fraud; Restitution to 1.8 Million Retirees Starts July 24 with IPCA Correction

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Updated Jul 3, 2025, 12:46 PM

The Federal Justice in Brazil has blocked R$ 2.8 billion in assets belonging to entities, companies, and individuals investigated for fraudulent illegal deductions from the benefits of retirees and pensioners of the National Institute of Social Security (INSS). The Attorney General's Office (Advocacia-Geral da União, AGU) confirmed the measure, which aims to ensure reimbursement to the victims of these unauthorized discounts. The AGU has filed 15 precautionary lawsuits representing the INSS to recover these funds. The president of the INSS, Gilberto Waller Júnior, announced that the restitution to affected retirees and pensioners will begin on July 24, 2025.

Payments will be made in a single installment directly to beneficiaries' accounts without intermediaries, with subsequent batches scheduled for August 9 and August 24. Approximately 1.5 to 1.8 million beneficiaries are expected to receive refunds, which will include monetary correction based on the IPCA inflation index. The government has submitted a restitution plan to the Supreme Federal Court (STF), where Minister Dias Toffoli, the case's rapporteur, will assess whether the proposal meets the requirements for swift and efficient reimbursement. The plan involves voluntary adherence by beneficiaries and is part of broader efforts by the AGU and the federal government to dismantle the fraud schemes affecting the INSS payroll. The Ministry of Social Security and the Public Prosecutor's Office are also involved in overseeing the restitution process. The government intends to release a detailed payment schedule following the STF's approval.

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