With the budget maneuver launched on Monday evening, the government introduced two innovations on pensions. The most relevant in terms of workers involved is the "quota 100", which from February 2019 will allow for early retirement with at least 62 years of age and 38 contributions. The other novelty is the cut in pensions exceeding 4.500 euros net per month, which will take effect next year and will be based on a reduction in the annual adjustment to inflation (therefore there will be no retroactive and permanent cut threatened in recent days by the M5S). According to government calculations, this measure should bring one billion euros into the state coffers over three years.
The levy on the so-called golden pensions is already contained in an ad hoc bill filed in the Chamber and the 5 Star Movement would have liked to move it to the tax decree connected to the maneuver. In the end, however, the two innovations on pensions should remain together in the budget bill (which, unlike the decree, must pass Parliament's scrutiny before entering into force).
NEW PENSIONS: THE 100 QUOTA IS NOT A REAL "QUOTA"
In reality, what the government calls the "100 quota" is not a real quota, because it does not allow you to retire with any combination of years of age and contributions as long as their sum is 100. Anyone who wants to retire early, in fact, it must comply with both the personal data requirement and the contributory requirement at the same time. This means that even 63-year-olds must have at least 38 years of contributions, consequently for them the 100 quota is transformed into 101 quota. Similarly, for those who are 64 years old the bar rises to 102 quota. And so on.
FACILITIES FOR THE REDEMPTION OF THE DEGREE
To help those with gaps in contributions to reach the 38-year threshold, government technicians are studying the possibility of relaunching the redemption of the degree, probably with some facilitation that encourages employers to pay it.
NO PENALTIES, BUT COLLABORATION IS FORBIDDEN
The Northern League Deputy Prime Minister Matteo Salvini assured that taking advantage of the 100 quota will not entail any penalty on the amount of the social security check. However, those who choose this path will probably not be able to combine their pension with other income from work, i.e. they will not be able to maintain collaborative relationships. With this ban, the government hopes to induce companies to hire young people to replace those who leave.
WHEN DO YOU RETIRE? WINDOWS EVERY 3-4 MONTHS
Starting from February 2019, early retirements with quota 100 will start with quarterly or four-monthly windows. In other words, once the requirements have been met, it will be necessary to wait another 3-4 months to cash the first check.
In reality, at the moment it is not clear whether this mechanism will apply only to the 100 quota or to other pensions as well. In the second case, workers who would have left their jobs at 67 next year will only receive their first pension at 67 years and 3/4 months.
GOLDEN PENSION CUTS
As for the so-called golden pensions, in the end it seems that the soft line supported by the League has prevailed. There will be no ax on the amount of the checks (it would almost certainly have been unconstitutional), only a partial cut in the inflation adjustment. In short, nothing traumatic, also because the price race is still slow. However, it is not excluded that the reduction may also affect to a lesser extent checks of less than 4.500 euros net per month.
THE NEXT STEP IS QUOTA 41
Salvini also said that the 100 quota is only the first step in a process that will lead to the demolition of the Fornero law. The next should be quota 41, which would allow people to retire at any age as long as they have at least 41 years of contributions (instead of the 43 now required of men). The aim is to meet the needs of early workers.
DOUBTS ABOUT LIFE EXPECTANCY
It is not yet clear what the government intends to do regarding the adjustment of pension requirements to life expectancy, the mechanism which periodically requires the retirement age to be adjusted upwards. It is possible that it will be canceled for early pensions but not for old-age ones, because such a choice would put the accounts of the social security system at risk in the long term.
WOMAN OPTION CONFIRMED
Remain in effect the female option, which allows female workers to retire early by accepting an allowance calculated entirely with the contribution method (less advantageous than the mixed contribution-pay system to which they would be entitled). However, the age requirement should rise to 60 years.
