CMN Resolution No. 298 - PIS/PASEP Participation Fund - Conditions for Transferring Resources to BNDE and Bases for Remuneration of Collection and Control Services

RESOLUTION NO. 000298

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the MONETARY COUNCIL, in a session held on this date, having regard to the provisions of Article 2 of Complementary Law No. 19, of June 25, 1974, regulated by Decree No. 74,333, of July 30, 1974,

HAS RESOLVED:

I - To determine that Caixa Econômica Federal - CEF and Banco do Brasil S.A. record, by the 20th day of each month, in special accounts in the name of the National Bank for Economic Development - BNDE and operated by it, the amounts generated, from July 1, 1974, respectively by the Social Integration Program - PIS and by the Public Servant's Patrimony Formation Program - PASEP in the previous month, comprising the collection of contributions, minus the following values:

a) provision of resources for attendance, at the appropriate times, of withdrawals of principal and earnings by quota holders, in accordance with the Laws;

b) disbursements resulting from contracts approved until June 30, 1974.

II - The returns from applications with resources generated until June 30, 1974 will have the following treatment:

a) in the case of working capital financing, the reinvestment will be made by Caixa Econômica Federal - CEF (PIS) and by Banco do Brasil S.A. (PASEP), in values not superior to - at June 1974 prices - Cr$2.2 billion and Cr$3.0 billion, respectively, according to the conditions already established by the Monetary Council;

b) in the case of fixed capital financing, the returns will be transferred to the National Bank for Economic Development - BNDE, to the extent that they enter Caixa Econômica Federal - CEF or Banco do Brasil S.A.

III - To fix at 1.5% (fifteen tenths of one percent), for the period from July 1, 1974 to June 30, 1975, the commission to cover the operating expenses and remuneration of Caixa Econômica Federal - CEF regarding the services of collection, control of contributions, and distribution of results, as well as all other tasks provided for in the Regulation of the Participation Fund for the Execution of PIS, annexed to Resolution No. 174, of February 23, 1971, which will be calculated on the net equity of the Program ascertained at the end of the financial year, and may be debited in monthly installments.

IV - To fix at 1.9% (nineteen tenths of one percent), for the period from July 1, 1974 to June 30, 1975, the commission to cover the operating expenses and remuneration of Banco do Brasil S.A., regarding the services of collection, control of contributions, and distribution of results, as well as all other tasks provided for in the Regulation of PASEP, object of Decree No. 71,618, of December 26, 1972, and Resolution No. 254, of March 15, 1973, which will be calculated on the net equity of the Program ascertained at the end of the financial year, and may be debited in monthly installments.

V - To fix at 0.6% (six tenths of one percent) per year, for the period from July 1, 1974 to June 30, 1975, the commission to cover the operating expenses and remuneration of the National Bank for Economic Development - BNDE for the realization of operations with resources generated by PIS and PASEP, which will be calculated on the net equity of the Programs ascertained at the end of the financial year, and may be debited in monthly installments.

VI - To fix at 0.8% (eight tenths of one percent) per year, for the period from July 1, 1974 to June 30, 1975, the commission to cover the operating expenses and remuneration of Caixa Econômica Federal - CEF, and of Banco do Brasil S.A., when these act as special agents of the National Bank for Economic Development - BNDE, in the application of the resources of PIS and PASEP, which will be calculated on the applications effected.

VII - The application rates under the responsibility of the National Bank for Economic Development - BNDE, including the remuneration of accredited agents, may not be superior to 9% (nine percent) per year, nor inferior to 5% (five percent) per year, without prejudice to monetary correction, according to the indices applicable to the Treasury Adjustable Obligations.

VIII - The risks resulting from the applications made directly by the National Bank for Economic Development - BNDE, by Caixa Econômica Federal - CEF, and by Banco do Brasil S.A. will be borne by the PIS and PASEP Funds themselves.

IX - The National Bank for Economic Development - BNDE is assigned the responsibility to ensure to the participants of PIS and PASEP the minimum remuneration provided for in the respective Laws and Regulations on the values that are transferred to it monthly according to the provisions of item I of this Resolution, maintaining identical responsibility regarding the resources that continue to be managed by Caixa Econômica Federal - CEF and by Banco do Brasil S.A. in the manner of item II of this Resolution, to their respective managers.

X - The National Bank for Economic Development - BNDE will provide Caixa Econômica Federal - CEF and Banco do Brasil S.A. with the information necessary for the accounting and control records of the respective Funds and, at the end of each financial year, will inform those entities of the global results of the applications made, for the measures regarding the distribution of these results among the participants of PIS and PASEP, in proportion to the resources of one and the other Program that have been credited to them in the period.

Brasília-DF, July 30, 1974

Paulo H. Pereira Lira
President