Social security or social provision?

The media have insistently published government plans to delay retirement because the social security fund, the INSS, is in the red. Or something to that effect. However, just as the Federal Revenue Service failed to notice the flight of funds, amounting to billions or trillions of dollars, that migrated to accounts in Switzerland and other tax havens, that is what is happening with social security in Brazil. At this very moment.

The largest debtors to the INSS are the bankrupt estate of Viação Aérea Riograndense (Varig), whose debt exceeds R$ 3 billion. Of course, this total did not arise overnight. In fact, this debt, this outstanding liability of Varig to the INPS, later the INSS, began while the company was still in existence. Oh, and the federal government did not see it. Of course! It is convenient to turn a blind eye in such cases. Imagine how many city councilors, mayors, governors, representatives, and senators traveled at the expense of ignored debts and liabilities.

In second place in terms of debt or liability to social security comes JBS, much in the spotlight lately. Whether because its spokesperson is a renowned actor from a major TV network or because the financial growth of this meatpacking company is closely tied to police news, the debt comes close to R$ 2 billion.

The third-largest debtor to the INSS is Viação Aérea de São Paulo – Vasp, totaling Cr$ 1,683,001,075.54 at this moment, as I write this text.

Naturally, in all three cases, the debts, outstanding liabilities, and obligations did not arise overnight. They did not fall from the sky like meteors or meteorites. They were not frozen like cuts of meat to be prepared or distributed to points of sale. No. The INPS debt dates back to the time when Antônio Delfim Neto was a minister, in the 1970s. Even then we were warned that retirees faced serious risks in receiving their benefits, that the contribution period would be extended because there was not enough money in the fund. And the government turned a blind eye to companies’ debts. A true quid pro quo: the companies did not pay in, the government did not collect, and both benefited. And the people, who believed everything was proceeding satisfactorily and in their favor, still retire today and continue working because they cannot depend solely on retirement income. Because the value of money has been falling sharply.

A thorough audit of the government’s collection agencies is necessary. Whether the collection involves taxes, contributions, or fees, the accounts should be thoroughly examined. It will surprise no one if the situation turns around. In favor of the people.