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The Social Security Financial Stabilisation Fund (FEFSS) is a crucial instrument for the sustainability of the Portuguese Social Security system. This study provides an in-depth analysis of the FEFSS, with the aim of clarifying its nature and goals by comparing its distinctive features with other national and international funds. 


Understanding the evolution of Portuguese state's main financial reserve necessarily involves analysing the evolution of its financing sources and the investment policy adopted over time to promote financial return and assessing how these have accompanied the structural changes that have taken place in the social security system.


The analysis highlights the important role that FEFSS plays as a Government lender and in the public assets management, through various interactions that have impact on public accounts. The study also addresses aspects related to the fund's governance, considering good practices and highlighting the importance of strengthening transparent and professional management.


From this analysis, the authors conclude that there is a need to reform and strengthen the FEFSS legal regime, applicable both in the accumulation and phasing out and, especially with regard to the latter, the need to set explicit conditions for the use of the fund, preventing discretion and (bad) arbitrariness. 

Date of last update: 26/03/2024

Other Publications . Occasional paper nº 02/2024 . 26 March 2024