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Brazilian Private Pension System Overview

Explore Brazil's private pension system, including open and closed pension funds, benefits, and investment options. Learn about regulations from the Ministry of Finance and SUSEP.

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Brazilian Private Pension System Overview

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  1. Ministry of Finance SUPERINTENDENCY OF PRIVATE INSURANCE (SUSEP) Brazilian Private Pension System Hélio Portocarrero

  2. Ministry of Finance SUPERINTENDENCY OF PRIVATE INSURANCE (SUSEP) • Brazilian Private Pension System • Open Pension Funds • Ministry of Finance • National Council of Private Insurance - CNSP • Superintendency of Private Insurance - SUSEP • Insurance Companies and Open Pension Funds •  The products are available for any customer, by • individual or group contracts, sponsored or not.

  3. Ministry of Finance SUPERINTENDENCY OF PRIVATE INSURANCE (SUSEP) • Brazilian Private Pension System • Closed Pension Funds • Ministry of Social Security • Closed Pension Management Council - CGPC • Closed Pension Funds Secretary - SPC •  The products are only available for specific groups, • linked to a sponsor, who may be an employer, a manager • of association or union - Law 109/01 (occupational funds • and union funds)

  4. Ministry of Finance SUPERINTENDENCY OF PRIVATE INSURANCE (SUSEP) • Open Pension Plans • Benefits by: • survivorship; • disability; • death. • Payment as an annuity or as a lump sum. • Full portability, during the accumulation phase, to transfer the funds to another open or closed pension provider company. • Withdrawal of the contributor’s accumulated balance, after a period established by the company - limited to 24 months.

  5. Ministry of Finance SUPERINTENDENCY OF PRIVATE INSURANCE (SUSEP) • Open Pension Plans • Traditional products – Defined benefits only. • New line of products – defined contributions mostly. • Liabilities are linked to shares of special mutual funds - PGBL, PAGP e PRGP: • PGBL - It doesn’t guarantee minimum rate of return and has several alternative investment options. • PAGP - The accumulation rate is guaranteed at a specified index, and there is a surplus share. • PRGP - Besides the index and the surplus, there is a specified rate of return.

  6. Ministry of Finance SUPERINTENDENCY OF PRIVATE INSURANCE (SUSEP) • Mixed Plans • Besides the survivorship benefits, they pay benefits in case • of death and/or disability of the contributor. • The company can use resources from the survivorship • provision to finance other benefits (Communicability). • They offer better disclosure terms to customers. • They make easy for customers to remain in the plan, until the retirement date. • The companies have more flexibility to remunerate agents.

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