New Regulations for Brazil’s Open Supplementary Pension Plans

Brazil's Supplementary Pension PlansThe Superintendence of Private Insurance (Susep) new regulations for Brazil’s open supplementary pension plans to help avoid a ‘deviation’ of the investment fund resources exclusive to the VGBL (The Life Free Benefit Generator)-type plan.

The changes were established by the circulars 698/2024 and 699/2024, published in April/2024.

These new regulations were created to impair that the VGBL-pension-type plans are used as a form to avoid taxation upon the investment exclusive funds, which was proposed by the government and approved by Congress last year. Private pension plans, such as the VGBL, offer tax benefits to stimulate long-term savings in Brazil.

Primary changes

  1. Creation of the family exclusive plans or funds concept: These are destined to a sole beneficiary or family member and, in case the Mathematical Reserves for Current and Future Benefits (PMBaC) reach or surpass BRL 5 million, the company that manages the plan cannot accept new contributions or portability.
  2. Another novelty is the introduction of the ‘revenue circle,’ which allows the plan’s client to create different options for receiving the saved amounts, not only when they retire. This means that the client will be able to schedule the receipt of the benefits over the time he/she contributes to the plan in different formats and periods.

This change aims at making the plans more flexible, preventing the clients from withdrawing the entire pension in times of financial need.

The circulars also regulate the hiring of the so-called lifetime income, which is available only for some types of plans, including the Free Generating Benefit Plan (PGBL). In addition, the current regulations allow companies to offer open pension plans to their employees through automatic enrollment, although the employees are entitled to opt out of the plan.

These changes aim to modernize and make the open supplementary pension market more efficient, guaranteeing more protection and better consumer options.


This information about new regulations for Barzil’s open supplementary pension plans is provided by SCIATH. If you need support with your employee benefits in Brazil, please contact Asinta, and we will put you in touch with the local experts at SCIATH.