In April, our partner Flavio Martins Rodrigues took part in the webinar “Preservation of the Pension Contract and Legal Certainty”, organised by Abrapp – the Brazilian Association of Closed Supplementary Pension Entities.

The discussion, which was attended by Devanir Silva, Johne Nogueira, Leandro da Guarda, Lilian Mariani Hiebra and Marlene de Fátima Ribeiro Silva, centred on the unique nature of pension contracts.

Regarding beneficiaries’ contributions, Flavio highlighted that although the pension contract has a legal dimension, it is essentially grounded in actuarial and financial logic. Without the establishment of sufficient reserves to honour the contracted benefits, its primary objective—the payment of benefits—cannot be achieved.

He further explained at the event that various pension schemes provided for contributions from beneficiaries and policyholders, which can be understood as a kind of “deferral” of amounts that could not be contributed during the active phase.

“This is a well-established technique widely adopted in various countries. However, this practice has given rise to controversy regarding contributory parity,” he stated on the day.

To find out more about the event, click here.