Brazil: INSS audits expand and STJ issues major rulings

Brazil's social security agency (INSS) and the Superior Tribunal de Justiça (STJ) are implementing significant changes affecting millions of beneficiaries. The INSS has expanded its 'pente-fino' (audit) program for 2026 to verify eligibility, particularly for disability benefits, which may lead to payment suspensions if requirements are not met or if data is outdated. Additionally, the agency has issued warnings regarding financial scams targeting retirees and is managing a reduction in the benefit application backlog, though this has coincided with a rise in denied claims.

On the legal front, the STJ has issued several landmark rulings. The court decided that loyalty points and airline miles with economic value can be seized to settle debts. Furthermore, the STJ is debating the conditions for the double refund of undue charges, specifically regarding consumer loans. The court also ruled that banks may be required to refund installment payments for payroll loans if specific legal requirements for contracts involving illiterate individuals are not met.

Other administrative updates include the availability of income tax exemptions for retirees with serious illnesses and the opening of 50 positions for retired civil servants to return to active duty at the INSS.