INSS issues urgent announcement for pensioners and retirees; Change affects everyone

the INSS (The National Social Security Institute) is forced to abandon the measure announced last month that put an end to it Grace period for loan application sender. And all because the Federal Court made a decision that changes this rule.

On October 20, the Federal Regional Court of the First District overturned the decision of the National Pensions Institute (INSS) to exempt new retirees and pensioners from the grace period to apply for a salary loan.

In accordance with the decision taken by TRF-1, the action taken by INSS It monopolized the provision of payroll deductible credit. And all because in the first 90 days of receiving the salary, the loan can only be requested from the paying bank.

What is the INSS salary loan proposal?

The INSS proposal was submitted in September this year End of the 90 day grace period So that new Social Security employees can apply for payroll loans.

Even if the grace period is cancelled, some restrictions will remain:

• What it is today: New retirees and retirees who have earned INSS pay for 90 days or less cannot apply for a payroll loan;
• How it will work as of January 2025: A payroll loan will be available to new INSS employees, however The application can only be submitted at the bank where you receive your benefits.

In other words, initially the retiree or pensioner’s only option will be to obtain the loan granted in… The bank that pays your interest. If this institution is not the most beneficial, he will have to wait three months to look for another bank.

It was precisely this point that TRF-1 used as justification for denying the use of the end of the grace period.

For the Brazilian Banking Association (ABBC), according to Accounting portalthis measure That would violate free competition This will end up stimulating higher interest rates, as there will be no competitiveness.

INSS payroll loan rules

to Apply for a loan From INSS, the insured must be aware of the rules which include:

• The application can only be submitted 90 days after the salary is received by INSS;
• The maximum amount that can be committed from the insured’s salary to pay the loan installment is 35%;
• The repayment term cannot exceed 84 months;
• Interest rates are capped at 1.66% per month.