Find out here what to expect if approval is given for the new correction of the Severance Indemnity Fund (FGTS) by the Federal Supreme Court (STF), which intends to solve the problems of accounts caused by inflation.
What this article covers:
- What is the current status of the FGTS correction release process?
- What changes and impact will it cause if approved?
What is the current status of the FGTS correction release process?
The process of releasing the monetary restatement of the Severance Indemnity Fund has been held for around two years at the Federal Supreme Court and, due to the time it has been stopped at the legal institution, some guidelines have been and are being withdrawn from his text made by Solidarity.
The political party uses the argument that the current Referential Rate which, since the last months of 2017, has had its index at 0, considered as the lowest since inflation since 1999, in which it was the year of its creation, generates a great loss to the worker.
It was alleged by Solidariedade that the Referential Tariff is, without a doubt, unconstitutional, because the interest rate erodes the assets of Brazilian workers by not replacing inflationary losses. In addition, the national president of Solidariedade, federal deputy Paulo Pereira da Silva (SP), known in the political circles as Paulinho da Força, says that it is much more than necessary to have a new Reference Tariff index in favor of all Brazilian workers.
As a result, there is a lawsuit whose main rationale is to carry out corrections related to the Referential Rate (TR), but there is no forecast date for its judgment.
In September 2019, Minister Luís Roberto Barroso conceived a provisional decision with the suspension of the processing of all current processes on the correction of the Severance Guarantee Fund.
What changes and impact will it cause if approved?
If approval is given for the process to release the monetary restatement of the Severance Indemnity Fund, there will be a huge impact on Brazilian public coffers of R$ 300 billion reais, a price that is considered 10 times higher than the amounts Bolsa Familia budgets.
It was presented on what to expect if approval of the new correction of the Severance Indemnity Fund (FGTS) is given by the Federal Court of Justice (STF).