INSS: Judge orders suspension of discounts made by Contag

Judge Waldemar Claudio de Carvalho, of the 14th Federal Court of the Federal District, determined this Friday (9) the immediate suspension of retirement discounts in favor of the National Confederation of Agricultural Workers (Contag).

The decision suspends “any and all associative discounts” that are not supported by “prior, personal and specific authorization by the beneficiary”.

The National Social Security Institute (INSS) had authorized, in 2023, the automatic batch release of discounts on at least 32 thousand pensions and retirements for the benefit of the National Confederation of Agricultural Workers.

The judge states that the administrative act was illegal “given the lack of normative and documentary support, as well as the INSS’s failure to monitor and validate the procedures adopted by the partner entities”.

“The continuation of the effects of the order allows the continuation of potentially illegal discounts, with a direct impact on millions of beneficiaries, especially the elderly and underprivileged, who often do not even have access to digital means to control these releases,” wrote the judge.

Contag is suspected of embezzling R$2 billion from retirees between January 2019 and March 2024. The calculations are from the Federal Police.

The confederation is one of the entities investigated in Operation No Discount. When the investigation became public, the association denied any irregularities and reported that it had twice reported undue discounts and abusive practices against rural retirees and pensioners to the INSS.

After Operation No Discount, the INSS revoked all technical cooperation agreements with the associations and unions investigated by the Federal Police. It is through this instrument that the entities are authorized to operate direct deductions from retirees' paychecks.

In his decision, the judge states that, despite the revocation of the agreements, there are no “concrete elements that allow us to safely determine that those discounts deemed irregular have, in fact, ceased”. Therefore, he ordered the express suspension of the discounts.

There was also a request to remove Carlos Lupi from the Ministry of Social Security. As Lupi left the position, the judge considered that the request had lost its purpose.

“The dismissal of the aforementioned agent on May 2, 2025 is public knowledge.

Due to the formal termination of his ministerial functions, as a logical and legal consequence, his authorization to access documents and systems linked to the INSS has ceased, rendering the request made at this point ineffective.”

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