Greater outgoing flexibility compared to the rules established by the Fornero law. This is the heart of the new pension reform announced in recent months by the Government and expected within this year with the new Stability Law. The basic principle is now clear: those who want to retire early will be able to do so, but will be penalized with a reduction in the social security allowance. It is probable that the cut will be 3% for each year of non-contribution, but the Executive has yet to finalize the technical details of the new intervention. And he will have to do it with great caution, because – as Claudio Tito underlines today in La Repubblica – the minimum objective is to avoid repeating the flop of the TFR in payroll.
THE BOERI PROPOSAL
In reality, there are several practicable ways to increase outgoing flexibility. The Government seems to especially appreciate the one suggested by Tito Boeri, which he presented at the beginning of July the INPS proposals for a five-point pension reform. The idea is to spread the contribution amount accumulated over the course of the entire working life in relation to the leaving age and the residual life expectancy, thus making sure that the check is lower for those who cash it first. “Given that pensions are sufficient to guarantee a dignified life without involving the intervention of social assistance – commented the number one of the social security institution – this is sustainable flexibility”.
THE KNOT OF GOLDEN PENSIONS
To avoid coverage problems, however, a new intervention on the so-called golden pensions may be necessary. Again according to Boeri, "it is right to ask those with high pension incomes, by virtue of much more advantageous treatments than those enjoyed by tomorrow's retirees, for a contribution to the financing of more flexible outgoings: it will also serve to help those generations who have had the misfortune of running into the crisis at the end of one's working career”. However, an intervention of this type has already been rejected by the Constitutional Court, which in 2013 branded the solidarity contribution imposed in 2011 on pensions exceeding 90 euros gross as "unreasonable and discriminatory".
THE OTHER PROPOSALS
Another hypothesis, contained in the bill presented by the president of the Labor commission of the Chamber Cesare Damiano (Pd), provides for allowing those who are 62 years of age and at least 35 with contributions to leave work, but with a penalty on the amount of the check equal to 8 percent. However, the deduction is progressively reduced until it is zeroed for those who choose to retire having reached the age of 66. The text also includes a 2% bonus for workers who leave between 66 and 70 years of age. It would cost the state between three and four billion a year.
A variant of this scheme provides for a heavier penalty (about 12% of the allowance) for the part of the pension calculated with the salary: in the event of leaving at 62, the treatment could be reduced by around 20-30% overall . Damiano, in this case together with the deputies Marialuisa Gnecchi and Pier Paolo Baretta (Pd), also proposed to set the bar at 41 years of contributions to retire without any penalty.
Two other chapters concern the “Quota 100” and the Women's Option. There are two versions of the first: one still by Damiano (62 years of age plus 38 contributions) and one by the League (58 years of age plus 42 contributions). The second, however, refers to the rule according to which - until 31 December 2015 - female workers in the public and private sector can choose to retire at 57 years and 3 months of age (58 and 3 months if self-employed) and with at least 35 years of contributions, but with an allowance calculated entirely with the contributory method, which can lead to a reduction of up to one third of the amount. The League has asked for the deadline to be postponed to 31 December 2018, while Yoram Gutgeld, economic adviser to Palazzo Chigi, would like to extend the Option to men as well.
WHAT ARE THE RULES IN FORCE ON PENSION TODAY?
To avoid confusion, we propose below an outline that summarizes the requirements currently needed to retire. We remind you that from 2016 it will take four more months to retire from work, due to the update that adjusts the rules to the average life expectancy (to date these reviews are every three years, but the Fornero law establishes that from 2019 onwards they become every two years ).
Old age pension
Men – In addition to at least 20 years of contributions, from 2016 all male workers, both self-employed and public and private employees, will need 66 years and seven months of age (no longer 66 years and four months).
Women – The same requirements will also apply to women employed in the public sector, while for those working in the private sector the increase will be greater: from next year they will be entitled to an old-age pension at 65 years and seven months and from 2018 to 66 years and seven months (today the bar is at 63 years and nine months). For self-employed women, on the other hand, from 2016 it will be 66 years and one month and from 2018 to 66 years and seven months (from the current 64 years and nine months).
Early retirement
Men – To leave work earlier than the rules valid for the old-age pension, from 2016 42 years and ten months of contributions will be needed (today it takes 42 years and six months).
Women – Female workers will instead need 41 years and ten months of contributions (compared to the 41 years and six months needed today).
