INSS Releases R$ 547 Million to Reimburse Unauthorized Deductions

This page is a translation of the original Portuguese text, provided for convenience. It deals with Brazilian law. If there is any discrepancy, the Portuguese version prevails. Read the original in Portuguese

Through a provisional measure, the federal government has released R$ 547 million for the INSS (Brazil’s National Social Security Institute) to return amounts deducted without authorization from retirees and pensioners of the Regime Geral de Previdência Social (RGPS, Brazil’s general social security system).

What Provisional Measure 1.378 Provides

Provisional Measure No. 1.378 was signed on July 20, 2026, and published in the Diário Oficial da União (Brazil’s official gazette) on the 21st. It opened an extraordinary credit of R$ 547 million to reimburse INSS beneficiaries who had amounts improperly taken from their benefits. The money goes to the program “Social Security: Promotion, Guarantee of Rights and Citizenship,” which the agency itself runs.

The funds come from the social security budget, the same pool of revenue that pays retirement benefits, pensions, and other benefit payments. In practical terms, the amount strengthens the cash the INSS uses to carry out refunds to affected insured persons, without the agency having to shift money away from other expenses it has already committed.

Why the Government Is Paying These Amounts

This release did not come out of nowhere. It is part of a series of credit appropriations made throughout 2025 and 2026 to repair a problem that affected millions of retirees and pensioners: association fees and payroll-deducted loan installments (consignados) that appeared on their benefits even though the beneficiary never requested or authorized them. Many found out only when they checked their payment statement and noticed a monthly fee owed to an organization they had never heard of.

The case became a national story when investigations revealed the systematic charging of monthly fees by associations and organizations that presented themselves as representing retirees. The Supremo Tribunal Federal (STF, Brazil’s Supreme Court) went on to approve an agreement to organize the return of the money to those harmed, as detailed in our analysis of the court’s approval of the ADPF 1236 agreement for the return of fraudulent association deductions. The new provisional measure continues the financing of that effort.

Before it, another act had already set aside a much larger sum for the same purpose, as shown in the article on Provisional Measure 1.306/2025, which opened R$ 3,3 billion to reimburse victims of INSS fraud. The two amounts together show the scale of the shortfall the government is trying to correct.

What Is an Extraordinary Credit?

An extraordinary credit is an authorization for public spending outside what the year’s budget law had planned. The Constitution reserves this mechanism for urgent and unforeseeable situations, such as war, public calamity, or domestic upheaval, and allows it to be opened by provisional measure, with immediate effect, even before Congress reviews it (Article 167, § 3, of the Federal Constitution).

This tool differs from a supplementary credit, which is used to top up a budget line that already existed but proved insufficient during the year. A supplementary credit requires prior legislative provision or authorization and covers spending that was already expected.

An extraordinary credit, by contrast, covers what was neither foreseen nor scheduled, which is why it can be opened directly by provisional measure, without first consulting Congress. Reimbursing insured persons harmed by improper deductions has fallen into this second category every time the government has addressed the issue. That shows the Executive Branch continues to treat the problem as a recurring emergency rather than as a normally budgeted expense.

In the government’s view, the mass return of irregular deductions fits this category: millions of older people have had their income compromised, many of them relying on that money for medicine and food, which gives the situation the urgency that justifies the tool. For that reason, the money can be moved as soon as the provisional measure is published, without waiting for the full legislative process.

An extraordinary credit is spending outside the planned budget, released by provisional measure for urgent and unforeseeable expenses, with immediate effect.

Keep in mind that a provisional measure has a short life: it remains in force for 60 days, extendable for another 60, and must be converted into law by the National Congress to become permanent. Provisional Measure 1.378 will follow this path, and lawmakers will decide whether to keep, amend, or reject the credit it opened.

What Changes for Insured Persons

If a deduction has already been identified in your case and you are in the queue for a refund, the opening of this credit means money has been set aside for payment. The INSS handles the reimbursement, and the beneficiary is usually notified through official channels when the amount is deposited along with the benefit.

If you have not received anything yet, or you suspect you are still paying something you never authorized, you need to act. The first step is to check your benefit payment statement and the list of deductions available in the Meu INSS app and website. It shows the source of each amount taken out, which lets you spot association fees or payroll-deducted loans that you do not recognize.

On the statement, each deduction is itemized by line, with the name and nature of the charge. It is important to tell apart two categories that cause confusion. A “payroll-deducted loan” (empréstimo consignado) is an installment on a credit contract the beneficiary took out personally with a bank or finance company, with a fixed amount and a set term. An “association fee” (mensalidade associativa) is a recurring charge with no end date, made by an association, union, or professional organization. The second category accounted for most of the fraud uncovered, precisely because it required only a registration, with no loan contract, making it easier to insert without the beneficiary’s real authorization.

Once you have identified an improper deduction, you can dispute it administratively through Meu INSS or by calling 135. The system has opened specific modules where retirees can flag a deduction as unauthorized and request a refund. Keep the protocol number, because it proves the date of your request and the agency’s response.

If the INSS denies your dispute, keeps charging you, or takes unreasonably long to refund you, the remaining option is to go to court. The beneficiary can file a lawsuit seeking to stop the deduction, recover the amounts taken, and, depending on the case, obtain compensation for the damages caused. Deadlines and proof requirements vary from case to case, and it helps to gather your statements, protocol numbers, and benefit award letter before seeking guidance. If you want to understand the administrative stage better, see our material on the deadlines to dispute INSS deductions.

One point deserves special attention from the children and caregivers of retirees: many beneficiaries struggle with the app or fail to notice small monthly deductions that, added up over the years, become a significant sum. Checking an elderly relative’s statement periodically can reveal old charges that went unnoticed and may still be refundable.

When the beneficiary already has a representative registered in Meu INSS, whether through an electronic power of attorney or through legal representation in a case of guardianship (curatela), that representative can access the statement, file the dispute, and follow its progress on the beneficiary’s behalf, without needing new authorization for each request.

Frequently Asked Questions

Do I need to do anything to receive a refund of an improper deduction?

It depends on your situation. If the deduction has already been identified in the official reviews and you are in the refund queue, the INSS usually deposits the amount along with your benefit and notifies you through official channels, without you having to take any action. However, if you suspect a deduction you never authorized and have not been contacted, you need to act: check your statement on Meu INSS, identify the charge, and file a dispute. Simply waiting could cost you money you are entitled to.

Where can I see whether an unauthorized deduction is being taken from my benefit?

In the Meu INSS app or website, in your payment statement and the list of deductions on your benefit. It shows the source of each amount taken out, including association fees and payroll-deducted loan installments. If you see a charge from an organization you do not recognize, or a loan you never took out, that is a strong sign of an irregular deduction. The 135 phone line also provides information and lets you open a dispute if you have trouble using digital tools.

What do I do if the INSS denies my refund request?

If the administrative dispute is denied, the charge continues, or the refund is delayed without justification, you can go to court. You can file a lawsuit seeking to stop the deduction, recover the amounts taken, and, depending on the case, obtain compensation for the losses you suffered. Before doing so, gather your payment statements, the dispute’s protocol number, the INSS’s response, and your benefit award letter. These documents show that the deduction happened, that you challenged it, and that the agency did not resolve it administratively.

As informações deste artigo são de caráter informativo e não substituem consulta jurídica individualizada. Cada caso possui particularidades que exigem análise específica.