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Brazil’s Supreme Court Overturns INSS ‘Lifetime Review,’ Bars Pre‑1994 Contributions

The court preserved amounts paid under court orders through April 5, 2024 to protect beneficiaries who received increases in good faith.

Overview

  • In a virtual session concluded late Tuesday, the STF aligned this case with its 2024 precedent that insured persons cannot choose the most favorable calculation rule.
  • The justices set April 5, 2024 as the cutoff that shields retroactive sums already paid and blocks collection of attorneys’ fees and expert costs in suits pending by that date.
  • Lower courts can now resume suspended cases, with roughly 140,000 lawsuits reported to be in the pipeline over the disputed recalculation.
  • The ruling resolves years of conflicting precedents after a 2022 decision initially recognized the mechanism’s constitutionality.
  • The federal government had estimated that allowing the revision could cost public accounts up to R$ 480 billion.