UNFAIR DISCOUNTS ON SOCIAL SECURITY BENEFITS: A LEGAL ANALYSIS OF THE BILLION-DOLLAR FRAUD AT THE INSS

Abstract

Recently, a fraudulent scheme involving automatic deductions of union and association membership fees directly from the benefits of retirees and pensioners of the National Institute of Social Security (INSS) became public. It is estimated that, through deductions made without the authorization of the beneficiaries, more than six billion reais have been diverted over the years. In light of this revelation, the present article examines the constitutional and legal principles that were violated, the civil, administrative, and criminal liability of the managers involved, and the State’s omission in oversight. To this end, the research adopts a qualitative and exploratory approach, using a deductive method and documentary analysis of constitutional provisions, infra-constitutional laws, reports, and official data.