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Law to Combat Fraud: First Victory of New Social Security


The sanction of the new law will allow the government to review more than 6 million INSS benefits

President Jair Bolsonaro on Tuesday sanctioned the Law on Combating Social Security Fraud, which will allow the government to intensify the fight against fraud, improve the quality of social security spending and reduce the judicialization of social security issues. The government expects that the measure will generate an economy of R $ 9.8 billion over the next 12 months.

Brazil, unfortunately, is a country that has become accustomed to fraud, "said the president. "This law is an inflection point. Instead of raising taxes, let's fight fraud, "he added.

The original text was presented by the government on January 18, with the edition of Provisional Measure 871. On June 3, the text was approved by the Senate. Now, with the presidential sanction, the new rules are already valid with the changes added by the National Congress and will allow, for example, a careful review of benefits and lawsuits with indications of irregularities in the National Institute of Social Security (INSS) ), as well as changing rules for granting benefits, such as confinement, death pension and the provision of registration of special insured persons in rural areas, in order to obtain benefits before the INSS.

 Among the advances brought by the new law are the expansion of the cadastral bases (for example, CNIS with unemployment insurance, death system with payroll and information system of Civil Registry) and speed in the processing of the processes of calculation and reduction of the deadlines for the communication of the events by the registry to the INSS, which were reduced from 40 days to one day, when located in the main cities. Another important point is the adjustment of the legislation to reduce divergences of interpretation, which generate millions of lawsuits involving social security matters (reduction of the judicialization). TCU Report, dated 2018, indicates that the INSS annually disburses approximately R $ 92 billion per year (15% of its budget) for the payment of benefits granted by judicial decision.

Review of benefits

 The new law will allow the government to carry out a review of more than 6 million benefits processes in the INSS, about which irregularities are suspected, explained Rogério Marinho, the Special Secretary for Social Security and Labor of the Ministry of Economy, in a speech at ceremony. He noted that in addition to improving the quality of social security spending, the new rules bring justice, said Marinho. "This law removes vacuums that exist in the legislation and allows the INSS to remain healthy to do a good job to society. We will be sure that the right of the rural worker will be ensured, "he added.

The Special Secretary for Debureaucratization, Management and Digital Government of the Ministry of Economy, Paulo Uebel, pointed out that 90 services provided by the INSS will be digitized by July, within a process of modernization of the service that will also help to make the inspection more efficient. "We need to show quality service to rescue the population's trust in democratic institutions," he said.

The expectation is to eliminate the stock of concession processes until the end of 2019, when the INSS will only work on the monthly flow of new orders, with concessions under 45 days (legal term). The registries will be obliged to communicate the registration of the births to the INSS in 24 hours, allowing an increase in the speed in the granting of maternity wages, including automatically (before, the term was up to 40 days). Another highlight is the digital transformation in INSS: by July, 90 of the 96 services offered by INSS will be carried out by MEU INSS or by telephone 135, including the launch of the Retirement and Income Simulator.