On June 12, the Supreme Federal Court (STF) decided in a plenary session to maintain the application of the Referential Rate (TR) in the correction of balances in accounts linked to the Workers’ Severance Guarantee Fund (FGTS). However, the Court also accepted a government proposal, made in conjunction with labor unions, which adds inflation correction, measured by the Broad National Consumer Price Index (IPCA), to the index regardless of the scenario.
What is the TR?
The Referential Rate (TR) is an economic index used in Brazil, created by the federal government in 1991. Its initial function was to act as a mechanism to control inflation and serve as a reference for the correction of various types of financial contracts, such as savings accounts, loans, and mortgage financing.
What is the IPCA?
The IPCA, or Broad National Consumer Price Index, is the main economic indicator for measuring inflation in Brazil. Calculated by the IBGE, the IPCA reflects the price variation of a set of goods and services consumed by families with incomes ranging from 1 to 40 minimum wages.
STF Decision
The prevailing decision was based on the vote of Minister Flávio Dino, accompanied by Ministers Luiz Fux and Cármen Lúcia. Ministers Cristiano Zanin, Alexandre de Moraes, Gilmar Mendes, and Dias Toffoli, who advocated for correction by the TR alone, were partially overruled. Ministers Luís Roberto Barroso, Nunes Marques, Edson Fachin, and André Mendonça were fully overruled, as they proposed adjusting the balances by the savings rate starting in 2025.
Context and Implications
The decision originated from a direct action of unconstitutionality filed in 2014 by the party Solidariedade against provisions of laws 8.036/90 and 8.177/91, which stipulated that FGTS deposits should be adjusted by the TR. It was argued that the TR does not keep pace with inflation, resulting in losses for workers.
The federal government, in turn, argued that the FGTS is fundamental for public policies such as housing and basic sanitation and that increasing the correction would reduce the financing capacity for these areas.
Relator’s Vote and Divergences
Minister Luís Roberto Barroso highlighted that the remuneration of the FGTS is extremely low and suggested that deposits should be at least adjusted by the savings rate. He argued that public policy cannot be funded solely by a vulnerable group without fair compensation in return.
Minister Cristiano Zanin emphasized that the FGTS is a social right of workers and that monetary correction should follow the criteria established by the legislator, and it is inappropriate for the STF to alter these criteria to avoid reindexing the economy.
Conclusion
The final STF decision was to maintain the TR as the basis for correcting FGTS accounts but with the inclusion of adjustment by the IPCA. This new system will be applied prospectively, with no retroactive effect, ensuring that the remuneration of FGTS accounts reflects at least the official inflation. This decision is an important milestone that balances the protection of workers’ assets with the feasibility of essential public policies for the country’s development.