Benefit Plans
At present, PREVI maintains three different benefit plans: Plano 1, Plano PREVI Futuro (Future PREVI Plan) and Capec - Accumulated reserve funds (nest-egg plan).
Plano 1 is a Benefit Plan for Retirements and Pensions offering a defined benefit. That type of plan was offered to Banco do Brasil employees engaged until December 23rd 1997. Therefore it is now closed for the new enrollments. Its benefits are supported by contributions by the employee and sponsors that compose the necessary reserves established in accordance to the Regime Financeiro de Capitalização (Financial Capitalization System). The principal characteristic of a defined benefit is the existence of a rule or a pre-defined value for the concession of benefits. Furthermore, its cost is defined to be collectively paid, in a solidaristic manner, based on an estimate of future benefits and can be revised during the lifer of the plan.
Plano Previ Futuro is the current Plano de Benefícios de Aposentadorias e Pensões (Benefit Plan for Retirement and Pensions) offered to Banco do Brasil employees engaged after December 24, 1997 established in the form of variable contributions. Its benefits are also funded by contributions from the participants and from the sponsors that constitute reserves in accordance to the Regime Financeiro de Capitalização. The risk benefits (disablement pensions and pensions for active employees) show characteristics similar to those of the defined benefits. The programmed benefits (anticipated retirement, or retirement due to having completed the necessary period of contribution, and the respective reversal into pension) follow the variable contribution pattern; the respective contributions, after deducting the administration fees, aim at the formation of individual reserves, the amount of which will determinate the amount of each benefit at the time of retirement.
Capec - Accumulated Reserve Funds (nest-egg plans) offer benefits in the form of a lump payment due to a casualty (death or disablement, according to the type of the participant's Capec plan). Their costs are funded exclusively by contributions from the participants and are used to pay the Capec payments during that year, in accordance to the Regime Financeiro de Repartição Simples ( Simple Office Financial System).
