On May 7, 2025, federal judge Waldemar Claudio De Carvalho ordered the Brazilian government and the National Institute of Social Security (INSS) to respond within 48 hours regarding alleged irregularities in deductions from retirees' payrolls. This decision comes amid a popular lawsuit initiated by Congressman Nikolas Ferreira (PL-MG) and Curitiba councilor Guilherme Kilter (Novo), who are demanding accountability for a fraud scheme that has reportedly cost public coffers billions.
The lawsuit questions the actions of former Minister of Social Security Carlos Lupi, who resigned earlier this month following the emergence of these allegations. The judge’s ruling underscores the urgency of the matter, as approximately 4.1 million beneficiaries may have been affected by these unauthorized deductions.
According to the plaintiffs, the irregularities have led to a minimum loss of R$ 6.3 billion to the government since 2019. They argue that Lupi was negligent in addressing warnings about the fraud, which allowed the illicit practices to continue and escalate over the years. The action seeks not only reimbursement for the affected retirees but also a full refund to public coffers.
The popular action was spurred by a joint operation conducted by the Comptroller General of the Union (CGU) and the Federal Police (PF) in April 2025. This operation uncovered a national scheme involving unauthorized associative discounts on pensions and retirements, which allegedly charged retirees an estimated R$ 6.3 billion from 2019 to 2024.
Vinicius Marques de Carvalho, the Minister of the Comptroller General of the Union, confirmed that the entities involved in the scheme lacked the necessary operational structure to provide the services they claimed to offer. This investigation led to the dismissal of Alessandro Stefanutto, the then-president of the INSS, highlighting the serious implications of the fraud.
In their lawsuit, Ferreira and Kilter are calling for Lupi to be held accountable for his role in allowing these fraudulent activities to persist. They are also demanding that the Federal Public Ministry (MPF) be notified to provide its stance on the matter.
Ferreira, who has gained considerable attention for his advocacy on this issue, recently released a video criticizing the government’s handling of the situation. This video has gone viral, amassing over 120 million views, and further amplifying the call for transparency and accountability. In the video, Ferreira emphasizes the importance of addressing the fraud and restoring the funds to the retirees who have suffered due to these actions.
As the situation unfolds, the political landscape is shifting, with calls for a Parliamentary Commission of Inquiry (CPI) to investigate the fraud further. The opposition is pushing for a thorough examination of the events that allowed such a significant breach of trust and financial misconduct to occur.
The urgency of the case has caught the attention of many, with Ferreira stating, “The Justice recognized the urgency and the gravity of the case. We expect quick responses and total transparency about who allowed billions to be diverted from retirees and pensioners.”
As the deadline for the government's response approaches, the public awaits clarity on how officials will address the allegations and the potential ramifications for those involved. The outcome of this case could have significant implications for the integrity of Brazil's social security system and the trust of millions of retirees who depend on it.
In summary, the Brazilian government and the INSS face mounting pressure to clarify their positions regarding the alleged fraudulent deductions affecting countless retirees. With a federal judge demanding immediate action and a viral video drawing public attention, the stakes are high for all parties involved.
