Overview
- The court, in a virtual plenary decision published Feb. 16, confirmed that FGTS balances must be corrected by at least the IPCA to preserve purchasing power.
- It upheld the statutory formula of TR plus 3% interest and profit distribution only when the combined return reaches or exceeds official inflation.
- Retroactive recalculation was rejected, with the standard to operate going forward to maintain the fund’s financial predictability.
- The FGTS governing council must implement compensatory measures whenever annual returns fail to meet the IPCA benchmark.
- The binding precedent in ARE 1573884, recognized with general repercussion, stems from a Paraíba worker’s appeal, with relator Edson Fachin deeming a simple TR-for-IPCA swap unviable.