Complementary Law Nº 108, 29 May 2001

Original Language Title: Lei Complementar nº 108, de 29 de Maio de 2001

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SUPPLEMENTAL LAW # 108, OF May 29, 2001

Has about the relationship between the Union, States, the Federal District and the Municipalities, their municipalities, foundations, mixed economy societies and other public entities and their respective closed entities of supplementary pension, and gives other arrangements.

THE PRESIDENT OF THE REPUBLIC

I do know that the National Congress decrees and I sanction the following Supplementary Law:

CHAPTER I

INTRODUCTION

Art.1º The relationship between the Union, the States, the Federal District and the Municipalities, including their municipalities, foundations, mixed economy societies and directly or indirectly controlled companies, while sponsors of closed entities of supplementary pension, and their respective entities closed, to which they refer to § § 3º, 4º, 5º and 6º of the art. 202 of the Federal Constitution, shall be disciplined by the provisions of this Supplementary Law.

Art.2º The rules and general principles set out in the Supplementary Law that regulates the caput of the art. 202 of the Federal Constitution apply?if the entities regulated by this Supplementary Law, ressaved the specific provisions.

CAPs II

OF BENEFIT PLANS

I Section

Special Provisions

Art.3º Observed the provisions of the previous article, the benefits plans of the entities that it treats this Supplementary Law will meet the following rules:

I? minimum grace of sixty monthly contributions to the plan of benefits and termination of the bond with the sponsor, to become eligible for a benefit of provision that is scheduled and continued ; and

II? benefit by the pension scheme to which the participant is filmed through its sponsor, when it comes to plan in the defined benefit modality instituted after the publication of this Supplementary Act.

Single Paragraph. Readjustments of the benefits under maintenance will be effected in accordance with criteria set out in the benefits plans regulations, vetting the return of income gains allowance and advantages of any nature to such benefits.

Art.4º In the mixed economy societies and companies controlled directly or indirectly by the Union, the States, the Federal District and the Municipalities, the proposal for an institution of benefit plan or adherence to the plan of implementation benefits will be submitted to the supervisory body, accompanied by favourable manifestation of the body responsible for the supervision, coordination and control of the sponsor.

Single Paragraph. Changes in the benefit plan that entails raising the contribution of sponsors will be the subject of prior manifestation of the body responsible for supervision, coordination and control referred to in the caput.

Art.5º It is vetoed to the Union, the States, the Federal District and the Municipalities, their municipalities, foundations, public companies, under mixed economy companies and other public entities the port of resources to provident entities. private character of supplementary character, saved in the condition of sponsor.

Section II

From Custeio

Art.6 ° The cost of benefit plans will be the responsibility of the sponsor and the participants, including assisted.

§ 1º The normal contribution of the sponsor to benefits plan, under no circumstances, will exceed that of the participant, observed the provisions of the art. 5º of Constitutional Amendment No 20 of December 15, 1998 and the specific rules emanating from the regulator and supervisor.

§ 2º In addition to normal contributions, plans will be able to provide for the allocation of resources by the participants, in the title of optional contribution, without counterpart to the sponsor.

§ 3º It is vetoed to the sponsor to take additional charges for the funding of the benefits plans, in addition to those anticipated in the respectivecuster plans.

Art.7º The administrative expense of the supplementary pension entity will be borne by the sponsor and participants and assisted, taking into account the limits and criteria set by the regulator and supervisor.

Single Paragraph. It is provided to sponsors the assignment of personnel to the supplementary pension entities that sponsor, provided that the corresponding costs have been ressarcated.

CHAPTER III

DAS SUPPLEMENTAL WELFARE ENTITIES

SPONSORED BY PODER PUBLIC AND ITS COMPANIES

I Section

The Organizational Structure

Art.8º The administration and execution of the neflocked beetal plans competes with the closed entities of supplementary pension mentioned in art. 1º of this Supplemental Law.

Single Paragraph. The entities that it treats the caput orthopar win?if?on the form of foundation or civil society, non-profit.

Art.9º The organizational structure of the supplementary pension entities referred to in this Supplementary Law is constituted of deliberative advice, fiscal advice and executive director.

Section II

The Deliberative Council and the Fiscal Council

Art.10. The deliberative council, maximum organ of the organizational structure, is responsible for the definition of the general policy of administration of the entity and its benefits plans.

Art.11. The composition of the deliberative council, integrated by a maximum of six members, will be parity between representatives of the participants and assisted and sponsors, with the latter being given the nomination of the Chairman, who will have, in addition to his, the vote of quality.

§ 1º The choice of the representatives of the participants and assisted to give?if?á by means of direct election between your peers.

§ 2º Case the status of the closed entity, respected the maximum number of advisers of which it treats the caput and the parity participation between representatives of the participants and assisted and thesponsors, provide for another composition, which has been approved in the manner provided for in its status, this may be applied, upon authorization from the regulatory body and supervisor.

Art.12. The mandate of the members of the deliberative council will be four years, with a guarantee of stability, allowed a reconduct.

§ 1º The member of the deliberative council will only lose the mandate by virtue of resignation, of judicial conviction carried on trial or disciplinary administrative proceedings.

§ 2º The institution of disciplinary administrative proceedings, to ascertain irregularities within the scope of deliberative council of the closed entity, may determine the removal of the adviser until its conclusion.

§ 3º The removal from which it treats the preceding paragraph does not imply an extension or stay in office beyond the date originally intended for the termination of the mandate.

§ 4º The status of the entity should regulate the procedures for dealing with the preceding paragraphs of this article.

Art.13. The deliberative council competes in the definition of the following matters:

I? general policy of administration of the entity and its benefits plans ;

II? change in status and regulations of benefit plans, as well as the deployment and extinction of them and the sponsor withdrawal ;

Ill? investment management and resource application plan ;

IV? authorize investments involving values equal to or greater than five per cent of theguaranteed resources ;

V? hiring of current independent auditor and managerial evaluator, observed the applicable regulatory provisions ;

VI? nomination and exoneration of the members of the directorial-executiva; and

VII? examination, to a degree of appeal, of the decisions of the executive director.

Single Paragraph. The definition of the subjects provided for in inciso II should be approved by the sponsor.

Art. 14. The fiscal board is the entity's internal control body.

Art. 15. The composition of the tax council, integrated by a maximum of four members, will be parity between representatives of sponsors and assisted living, with the latter being given the nomination of the Chairman Advisor, who will have, in addition to his, the quality vote.

Single Paragraph. Should the status of the entity closed, respected the maximum number of advisors it treatsthe caput and the parity participation between representatives of theand assisted participants and the sponsors, provide for another composition, which has been approved in the manner provided for in its status, this may be applied, upon authorization from the regulatory body and supervisor.

Art.16. The mandate of the members of the fiscal council will be four years, vetoed to reconduct.

Art.17. The renewal of the mandates of the counsellors should comply with the proportionality criterion, so that it will be partially processed every two years.

§ 1º In the first investiture of the councils, after the publication of this Supplementary Act, its members will have mandate with a differentiated time limit.

§ 2º The deliberative council is expected to renew three of its members every two years and the fiscal board two members with the same periodicity, observed the transition rule set out in the preceding paragraph.

Art.18. Apply?if the members of the deliberative and fiscal councils the same requirements as provided for in the incisos I to III of the art. 20 of thisSupplemental Act.

Section III

From the Board?Executive

Art. 19. The board?executive is the body responsible for the administration of the entity, in accordance with the administration policy drawn up by the deliberative council.

§ 1º The board?executive will be composed, at most, by six members, defined in function of the entity's heritage and its number of participants, including assisted.

§ 2º The statute of the closed entity, respected the maximum number of directors of which it deals with the preceding paragraph, should provide for the form of composition and the mandate of the board?executive, approved in the form provided for in its status, observed the other provisions of this Supplementary Law.

Art. 20. The members of the board?executive should meet with the following minimum requirements:

I? proven experience in the exercise of activity in the financial, administrative, accounting, legal, supervisory, actuarial, or audit area ;

II? not have suffered criminal conviction transitioned on trial:

III? have not suffered administrative penalty for infraction of the legislation of social security, including supplementary pension or as a public servant ; and

IV? have higher level training.

Art. 21. To the members of the board?executive is veton:

I? simultaneously exercise activity in the sponsor ;

II? to concomitantly integrate the entity's deliberative or fiscal board and, even after the termination of its mandate in the board?executive, as long as it does not have its accounts approved ; and

III? over the course of the exercise of the mandate to provide services to member institutions of the financial system.

Art. 22. Will the supplementary pension entity inform the regulator and supervisor of the responsibility for the applications of the entity's resources, chosen among the board members?executive.

Single Paragraph. The other members of the board?executive will respond in solidarity with the leader indicated in the form of the caput for the damage and damage caused to the entity for which they have agreed.

Art. 23. In the twelve months following the termination of the office exercise, the ex?director will be prevented from providing, directly or indirectly, regardless of the form or nature of the contract, any kind of service to the companies of the financial system that entail the use of the information to which you have been granted access to the office exercised, under penalty of civil and criminal liability.

§ 1º During the impediment, to the ex?director who has not been impeached or who requests removal will be ensured the possibility of providing service to the entity, upon remuneration equivalent to that of the direction office which he exercised or in any other Public Administration body.

§ 2º Inruns in the practice of administrative advocacy, subjecting?if the penalties of the law, the ex?director who violates the impediment provided for in this article, except if you return to the job or job you held together with the sponsor, previously the nomination for the respective executive director, or if appointed for exercise in any Public Administration body.

CHAPTER IV

DA SURVEILLANCE

Art. 24. The supervision and control of benefits plans and the closed entities of supplementary pension that it treats this Supplementary Law compete with the regulatory and supervisory body of the closed entities of supplementary pension.

Art. 25. The actions exercised by the organ referred to in the previous article do not eximpose sponsors of responsibility for the supervision and systematic surveillance of the activities of their respective supplementary pension entities.

Single Paragraph. The results of the surveillance and control exercised by the sponsors will be referred to the organ mentioned in the previous article.

CHAPTER V

GENERAL PROVISIONS

Art. 26. Do the closed entities of supplementary pension sponsored by permissionary private companies or utility dealerships subordinate?if, in what couber, the provisions of thisSupplementary Law, in the established form by the regulator and supervisor.

Art. 27. Supplementary pension entities sponsored by public entities, including public enterprises and mixed-economy societies, are expected to review, within two years, from December 16, 1998, their benefits and service plans, from tuning mode?los atuarially to their assets, under penalty of intervention, being their leaders and their respective sponsors responsible civil and criminally for the disfulfillment of the provisions of this article.

Art. 28. Infringement of any provision of this Supplementary Law or of its Regulation, for which there is no expressly comprised penalty, subject to responsible physical or legal person, as per the case and the seriousness of the infringement, to penalties administration provided for in the Supplementary Law that discipline the caput of the art. 202 of the Federal Constitution.

Art. 29. Private pension entities sponsored by companies controlled, directly or indirectly, by the Union, States, Federal District and Municipalities, which have defined benefit plans with sponsor responsibility, will not be able to exercise control or participate in shareholder agreement that has by object formation of anonymous society control group, without prior and express authorization from the sponsor and its respective controller.

Single Paragraph. The provisions of caput shall not apply to the shareholdings held on the date of publication of this Supplementary Law.

Art. 30. The supplementary pension entities will have the one-year deadline to adapt their statutory organization to the provisions of this Supplementary Law, counted from the date of their publication.

Art. 31. This Supplemental Law comes into force on the date of its publication.

Art. 32. Revoke?if Law No. 8,020 of April 12, 1990.

Brasilia, May 29, 2001 ; 180º of Independence and 113º of the Republic.

FERNANDO HENRIQUE CARDOSO

Jose Gregori

Pedro Malan

Roberto Brant