“Industry’s cradle,” a historian mused. Here we stand before the IAPI in São Paulo. It is more than just a name. IAPI represents a significant chapter in Brazil’s social security history.
The IAPI acronym stands for Instituto de Aposentadoria e Pensões dos Industriários. This translates to the Retirement and Pension Institute for Industrial Workers. Established in 1936 during the Estado Novo period, the IAPI aimed to provide security to industrial workers.
Before IAPI, social security existed only for Imperial servants. D. Pedro I established it. The Elói Chaves Law in 1923 really kick-started pension systems. It created CAPs that were retirement and pension funds.
Getúlio Vargas suspended CAPs in 1930. After six months, he shut them down. Vargas replaced them with IAPs. These were hierarchical structures. They were managed by the federal government. They were divided by professional category. This differed from CAPs organized by company.
The government wanted control of worker institutions. Some CAPs held considerable wealth. The IAPI emerged from this restructuring. It was specifically for industrial workers.
The IAPI and other IAPs played a crucial role. They financed social projects and infrastructure. Workers’ money helped build the National Steel Company. It also helped construct the Presidente Dutra highway. The government used IAP funds for social works. They issued public debt bonds as payment. The government never paid these.
IAPs built hospitals and clinics. These served their members. Heliópolis, Brigadeiro, and Ipiranga hospitals belonged to them.
In 1960, the government sought to fix Brazil’s social security. The LOPS law standardized benefit plans. It aimed to cover all urban workers. This excluded domestic employees and religious ministers initially.
The 1964 dictatorship weakened worker organizations. It created a commission. This commission reformed the social security system. Decree-Law 72 in 1966 extinguished all IAPs. They were grouped into the INPS. This was the National Social Security Institute.
The 1966 reform had positive aspects. It extended protection. This covered previously unprotected categories. Workplace accident insurance was created.
In 1974, the Ministry of Social Security was created. It took responsibility for pensions through INPS. INAMPS was also created for medical assistance. It incorporated INPS hospitals. These hospitals belonged to all formal workers.
Law 639 in 1977 created the SINPAS system. SINPAS split INPS into three institutes. These were IAPAS, INPS, and INAMPS.
The 1988 Constitution was a landmark. Social security became part of a larger system. This was social security. It included benefits, unemployment insurance, social assistance, and health.
In 1990, INPS merged with IAPAS. This formed the National Institute of Social Security. INAMPS was shut down. Its services were covered by SUS. SUS absorbed some hospitals and medical facilities.
Some states had already taken over hospital administration. Some of these hospitals once belonged to workers. They are now managed by private entities.
The Brazilian social security system has three parts. There is the General Social Security System. There are special systems for public servants. There is also supplementary security.
Today, IAPI’s legacy lives on. Many middle-class neighborhoods bear its name. These neighborhoods exist in Brasília and Salvador. They exist in Porto Alegre, Rio de Janeiro and Belém. The IAPI name represents a time when social security was expanding.