BANCO CENTRAL DO BRASIL – FOCUS
July 4, 2000
Top 50 company-sponsored closed pension funds ranked by total assets (Table 1). The
pension plans industry, comprising entities offering open and closed retirement plans
and disability benefits grew threefold since 1994 to total reported assets of R$132
billion. Portfolio balance progression and asset portfolio allocation of closed pension
funds as of March 2000 are presented in Figure 1, and for open plans entities in Tables 2
and 3. Banco Central do Brasil Resolution n. 2720, of April 24, 2000 established
directives for asset allocation of company-sponsored closed pension funds
according to criteria of safety, yield, solvency and liquidity. Specific ceilings for
investments in six segments and 19 portfolios were set. Loans to sponsors are
forbidden (Table 3). Full compliance will be required after April 30, 2001.
Complementary Law Project n. 63/99 in Congress assigns added flexibility to
establish entities and pension plans by the federal government, states,
municipalities, unions and professional associations, incorporating the concepts of
differed benefits and savings portability. Brazil’s labor market factsheet and
pension coverage in Table 4.
Figure 1
Company-Sponsored Closed Pension Funds
Evolution of Total Assets and Portfolio Allocation
R$ Billion and Share of Total
Investment Funds (FIF) 34.23% Stocks 25.85% Investment Funds (RV) 11.30% Real State 8.47% Government Securities 6.30% Time Deposits 3.81% Mortgage Loans 3.16% Other 2.93% Bonds 2.38%
Operations with Sponsors 0.06% Loans to Participants 1.52% 40 50 60 70 80 90 100 110 120 130
Top 50 Company-Sponsored Pension Funds
Table 2
Open-Membership Pension Funds
Ranked by Asset Portfolio – R$ Thousands March 2000
R$ Thousands
Insurance Companies Operating Open Pension
Plans
Provisions
Provisions
Mar-99 Mar-00 BRADESCO PREVIDENCIA E SEGUROS S/A 4,026,070 5,727,300
UNIBANCO AIG S/A - SEGUROS E PREVIDENCIA 854,201 1,067,568
SASSE CIA NACIONAL DE SEGUROS GERAIS 519,147 763,729
ITAU PREVIDENCIA E SEGUROS S/A 346,826 580,282
ICATU HARTFORD SEGUROS S/A 196,589 314,156
SUL AMERICA AETNA SEGS.E PREVIDENCIA S/A 1,844 296,885
REAL PREVIDENCIA E SEGUROS S/A 93,500 138,439
VERA CRUZ VIDA E PREVIDENCIA S/A 93,941 122,574
AGF BRASIL SEGUROS S/A 39,945 93,982
CCF BRASIL SEGUROS S/A 15,352 76,837
SUDAMERIS GENERALI CIA NAC SEG E PREV 43,493 69,145
BOZANO, SIMONSEN SEGURADORA S/A 43,172 53,109
TREVO SEGURADORA S/A 21,860 25,988
PORTO SEGURO VIDA E PREVIDENCIA S/A 5,798 24,396
UNIMED SEGURADORA S/A 10,757 22,424 GENERALI DO BRASIL CIA NACIONAL DE SEGS 16,211 22,226
SEGURADORA AMERICA DO SUL S/A 7,760 16,801
PACTUAL PREVIDENCIA E SEGUROS S/A 11,138 11,875
AGF VIDA E PREVIDENCIA S/A 7,089 6,969
CIGNA SEGURADORA S/A - 4,558
INVESTPREV SEGUROS E PREVIDENCIA S/A 3,403 3,644
SANTA CATARINA SEGUROS E PREVIDENCIA S/A 1,756 2,904
CIA DE SEGUROS GRALHA AZUL 1,368 2,313
BCN SEGURADORA S/A 3,996 1,947
CIA DE SEGUROS PREVIDENCIA DO SUL 945 1,619
MARITIMA SEGUROS 1,137 1,339
MULTIPLIC SEGURADORA S/A 199 897
SOMA SEGURADORA S/A - 243
UAP SEGUROS BRASIL S/A 209 188
AMIL SEGURADORA S/A 7,306 173
HSBC SEGUROS S/A - 147
SABEMI SEGURADORA S/A 156 146
SAOEX S/A SEGURADORA E PREVID.PRIVADA 89 102
CAIXAGERAL S/A - SEGURADORA 21 101
VANGUARDA COMPANHIA DE SEGUROS GERAIS 39 45
MBM SEGURADORA S/A 5 41
EDEL SEGURADORA S/A 62 40
MARTINELLI SEGURADORA S/A 3 9
Not-for-Profit Entities Operating Open Pension
Plans
Mar-99 Mar-00CAPEMI CAIXA DE PECULIOS 130,104 164,846
ASSOC PROF LIB UNIV BRASIL APLUB 110,938 126,760
COIFA PECULIOS E PENSOES 19,479 23,552
MBM PREVIDENCIA PRIVADA 19,024 19,965
RSPP PREVIDÊNCIA PRIVADA 11,226 19,036
MONGERAL PREVIDENCIA PRIVADA 13,017 17,866
GBOEX GREMIO BENEFICENTE 6,818 11,059
LUTERPREV - ENT LUTERANA PREV P 4,526 5,773
RECIPROCA ASSISTENCIA 3,883 4,761
PECULIO ABRAHAM LINCOLN AMAL 2,574 4,425
PREVIMIL SOC DE PREV PRIVADA 3,511 3,863
GEPLAN SOC DE PREV PRIVADA 3,329 3,401
CORRFA PREVIDENCIA PRIVADA 3,165 3,306
UNIÃO PREVIDENCIARIA COMETA DO BRASIL 1,460 1,887
SOCIEDADE AUXILIADORA 1,255 1,774
ARC PREVIDENCIA PRIVADA 1,335 1,236
PREVBRAS SOC NAC DE PREV PRIV 872 845
ASPECIR PREVIDENCIA 438 664
FAMILIA BANDEIRANTE PREV PRIV 424 570
PECULIO UNIAO 357 361
SOC CAXIENSE DE MUTUO SOCORRO 304 356
UNIPREV UNIAO PREVIDENCIARIA 185 195
SUCV UNIAO DE PREVIDENCIA 145 149
ACVAT PREVIDENCIA PRIVADA 125 132
EMPRESARIAL DE PREV PRIV 83 131
UPOFA UNIAO PREVIDENCIAL 85 123
ARCESP PREVIDENCIA PRIVADA 39 116
EQUATORIAL PREVIDENCIA PRIVADA 53 57
SABEMI PREVIDENCIA PRIVADA 29 56
PREVICORP PREVIDENCIA PRIVADA 11 11
Total Not-for-Profit Entities
338,793
417,276
For-Profit Entities Operating Open Pension
Plans
Mar-99 Mar-00BRASILPREV PREV PRIV S/A 750,092 1,219,270
BAMERCIO S/A PREVIDENCIA PRIVADA 3,100 3,075
Total For-Profit Entities
753,192
1,222,345
Table 3
Asset Portfolio Allocation Ceilings
Resolution n. 2,720
Other constraints apply. For more details, please refer to the following address:
http://lira.bcb.gov.br/ixpress/correio/correio/DETALHAMENTOCORREIO.DML?N=100094572&
C=2720&ASS=RESOLUCAO+N.+002720
Investment Segment/Portfolio
Ceiling
Fixed Income Investment
100%
Low Risk Instrument
100%
Medium/High Risk Instrument
20%
Fixed Income Derivatives
5%
Equity Investment
60%
Stock Market Index
60%
Blue Chips (High Liquidity)
60%
Arbitrage with Derivatives
10%
Secondary Stocks (Average Liquidity)
20%
Class C Stocks (Low Liquidity)
2%
Stock Issues
2%
Stock Certificates (BDR Levels II and III)
10%
Real State Investment
Development
Income
Real State Investment Funds
Other
Special Segment
Infrastructure Projects
Stocks and Debentures of Corporates
under Restructuring Process
Emerging Companies Investment Funds
Other Bonds
Loans and Financing
Loans to Participants
Real State Financing
Risk Management
Admitted hedging
operations only
Cross-Border Investment
Not Admitted
Loans to Sponsors
Not Admitted
16% in 2001
progressively declining
to 10% in 2007
10%
10%
Brazil’s Labor Market Factsheet and Pension Plans Coverage
Millions
Information for unrestricted disclosure. It is not intended to bind Banco Central do Brasil in its
monetary or foreign exchange policy actions. Request for Focus Reports through the e-mail
distribution list at
Source – Pesquisa Nacional por Amostra de Domicílios – PNAD/IBGE – 1998.
Population
158.2
Economic Active Population
76.9
Labor Force
69.9
Social Security Enrollment
26.7
Civil Servants (Public Sector Pension Regime)
4.5
9
Company-Sponsored and Open Pension Plans Enrollment
1.6
4 1
