Social security loan: operation news and useful information

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Despite the continuous announcements, followed by rumors and denials, on balance the Italian pension system remains an open construction site, whose works were started in the 90s. The 2016 Stability Law ready for its approval, which will undoubtedly lead to some new developments, does not seem to have that decisive character, but is presented to parliamentarians, for approval, as yet another measure to calibrate the pension landscape in such a way to ease the pressure on the state coffers.

In this context, the ” pension loan ” is inserted, conceived since its origin, to plug the difficult situation of the exodates, for which a systematic and decisive provision is still lacking. What are the news related to this mode of “anticipation” of the pension for exodates, and what are the conditions?

How it works and the requirements

How it works and the requirements

It should immediately be specified that in its original formulation, which dates back to the government led by Letta, by the current minister Giannini, the operation was simple: the Social security would have paid to those workers who, having 55 years but no employment, a monthly check , as a sort of pension advance, with the aim of transporting them either to a new job, or to the retirement of the pension.

This advance had to be paid by Social security, and once the pension had been paid, the beneficiary had to return it (for an amount equal to two thirds of the amount received), through a deduction upstream that the same institution would have carried out.

However, those who benefit from financial support of any kind, including disability benefits, would remain excluded. Since then, when the State Accounting Office seemed to have given its approval, the project was resubmitted by the Dems, but with some modifications, which at least initially were fairly contained but which, during the work on the commission for its evaluation, are substantially increased to the point of distorting its functioning and range.

At this point only the condition of unemployed worker remains fixed (see also Loans without work and guarantees ), while for the other aspects there are many conflicting voices including the age limit which, in the latest proposals Pd could be raised to 62/63 years . Among other things, until adequate coverage is found (also essential for changes to the social security system as a whole), it is almost unthinkable that the pension loan is approved.

Social security or companies: who should take on the pension loan?

Social security or companies: who should take on the pension loan?

One of the latest innovations introduced would have wanted to entirely shift the burden of the provision of the pension loan to the companies, framing it in the mechanism that would aim to increase the flexibility in output.

Here there would be different proposals, even if a trend would involve both the Social security and the companies: the latter would take over the pension loan ( which has no bearing on the maturity of the contributions ), while, once the pension matured (the minimum age required by law), the pension allowance would be deducted upstream by the Social security for the share of the income contribution granted in advance, to then proceed with a form of compensation with the companies themselves (see also Microcredit ). A very disputed mechanism, since it would be the prerogative of only the largest and most economically healthy companies.