Rio de Janeiro pension fund redirects excess cash to benefits and seeks to recover R$1.4 bn from Banco Master

On 9 October, the Rio de Janeiro State Unified Pension Fund (Rioprevidência) announced a new rule that any surplus in its administrative fund exceeding 150 % of the agency’s expenses over the previous 12 months will be transferred each month to pay state civil‑servants’ pensions and retirements. The change, approved by the executive board on 2 June, is expected to redirect roughly R$ 100 million by the end of the year and will be submitted to the Board of Directors in late June. The institute also said it will adopt a more conservative investment policy, focusing on short‑term, highly liquid assets, to avoid risky long‑term holdings. Director‑President Felipe Derbli stressed that “there is no point in subjecting Rioprevidência’s administrative cash to long‑term, inherently riskier investments.”

In parallel, acting Governor Ricardo Couto, after a meeting with Finance Minister Dário Durigan in Brasília, estimated that the state could recover about R$ 1.4 billion of the more than R$ 3 billion invested in Banco Master. The recovery effort relies on judicial actions, with part of the assets already blocked by court orders. The Federal Police’s Operation Compliance Zero continues to investigate alleged irregularities in those investments, linking former Governor Cláudio Castro to the alleged placement of approximately R$ 3 billion in credit letters and funds tied to Banco Master. STF minister André Mendonça has noted possible political facilitation of the deals.