STF upholds INSS authority over payroll loan interest rates

The Brazilian Supreme Federal Court (STF) has unanimously ruled that the National Social Security Institute (INSS) maintains the authority to define interest rate caps for payroll-deductible loans (consignado) for retirees and pensioners. This decision follows a challenge by the Brazilian Association of Banks (ABBC), which argued that such limits should be set by the National Monetary Council. The court determined that the INSS's role is to protect vulnerable beneficiaries and does not constitute an unconstitutional restructuring of the financial system.

In a separate development, the Brazilian Congress has promulgated a new law to reduce processing backlogs at the INSS. The law modifies the Benefit Management Program (PGB) by reducing the deadline for including administrative processes in the program from 45 to 30 days. The updated rules expand the program's scope to include the initial recognition of rights and prioritize the analysis of pending requests to address the significant volume of unprocessed claims.