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Redemption for pension purposes for members of the Civil Servants’ Pension Fund
As part of the Civil Servants’ Pension Fund (CTPS), the redemption payment service makes it possible to assess, upon claim and at the expense of the claimant, periods and services not covered by any contribution.
The redemption payment service is available to civil servants enrolled on the Civil Servants’ Pension Fund (CTPS). In the event of the civil servant's death, survivors who are entitled to an indirect pension may clam it.
As of 31st July 2010, the right to apply for redemption payment has also been extended to insured individuals, understood as individuals able to claim a contribution credited to the Civil Servants' Pension Scheme (Gestione Dipendenti Pubblici) who have not already been granted entitlement to a pension, even if they are no longer working. The claim can also be submitted by applicants who are no longer in work and do not have the right to a pension (ex-INPDAP operational note, 22nd December 2010, n. 56 (PDF 343KB), point 1.1).
Individuals who have been authorised to pay voluntary contributions can also submit a redemption payment claim during the voluntary contribution payment period.
REDEMPTION PAYMENT FOR UNIVERSITY COURSES
Pursuant to article 2 paragraph 2 of legislative decree n. 184 of 30th April 1997, periods corresponding to the legal duration of university courses after which the diplomas specified in article 1 of law n. 341/1990 were awarded, are eligible for redemption payment, namely:
- degree courses;
- university diplomas;
- specialised diplomas;
- certain PhD courses regulated by specific legal provisions.
Since 12th July 1997, redemption payments can be granted for the duration of legal university courses, even if the degree obtained is not required for the employment position held. The redemption payment right can also be exercised for two or more courses of study and partial redemption payments can be claimed (ex-INPDAP circular of 24th February 1999, n. 12).
Periods of enrolment on repeated years are not eligible for redemption payment.
The term “university diplomas” refers to any course, including its various titles, offered by universities or higher education institutes in accordance with the different educational systems that have developed over time (ex-INPDAP information 24th January 2000, n. 5 (PDF 27KB).
University study periods must not already be covered by compulsory, imputed, redemption or voluntary contributions made not only to the Fund to which the request is made, but also to other social security schemes referred to in article 2, paragraph 1 of legislative decree 184/1997. These include: the Employees' Pension Fund (FPLD); special pension schemes of this Fund for self-employed workers; substitute and exclusive funds of the Compulsory General Insurance scheme (AGO) for disability, old age and survivors, and the Separate Pension Scheme (Gestione Separata) as referred to in article 2, paragraph 26 of law 335/1995.
Academic qualifications specified by decree n. 509 of 3rd November 1999 are eligible for redemption payments, namely:
- three-year university degrees;
- specialist degrees.
Diplomas from AFAM Institutions (Institutions for Advanced Artistic, Musical and Choreographic Education) for courses starting in the academic year 2005/2006 are eligible for redemption payments (ex-INPDAP operational note, 14th May 2009, n. 25).
- first level academic diplomas;
- second level academic diplomas;
- specialised diplomas;
- academic diplomas for research training;
- advanced diplomas.
Periods of study abroad:
Academic qualifications achieved abroad must undergo specific recognition "for social security purposes", as stipulated in article 3, paragraph 1, letter b) of the decree of the President of the Republic 189/2009 (message of 22nd July 2014, n. 6208).
CALCULATION OF THE COST
The redemption payments costs for periods of university study are determined by the rules governing pension payments, using the remuneration system or the contribution system, whilst taking into account the time-frame of the periods subject to redemption payment.
- Redemption periods in the “remuneration system”. If the redemption periods are part of the remuneration system, the sum to be paid is determined in accordance with the criteria laid down in article 13 of law n. 1338 of 12th August 1962 (mathematical reserves). The amount varies depending on factors such as age, the redemption period, gender and salaries received in previous years. The cost of the transaction including the calculation of the mathematical reserve is calculated using the actuarial reserve corresponding to the portion of the pension which, as a result of redemption payment, is potentially or effectively acquired by the individual concerned (pension benefit).
- Redemption periods in the “contribution system”. For redemption periods for which the related pension share would be calculated using the contribution system, the corresponding sum is instead determined by applying the contribution rate in force at the date on which the redemption payment claim was submitted. This sum equals the amount provided for by the payment of the compulsory contribution due to the pension scheme where the redemption payment itself is applicable. The salary to which the above contribution rate is to be applied is that which was subject to contribution payments in the most recent 12 months with respect to the application date and is related to the period subject to redemption payment. The remuneration used as a basis for calculating the cost and related to the redemption payment period is credited to the individual's pension position, placing it at the same time as the redemption payment periods. In order to calculate the pension, the re-evaluation of the individual contribution amounts relating to the redemption payment periods takes effect from the date on which the claim was submitted.
Article 20, paragraph 6 of decree law 4/2019 introduced, for claims submitted from 29th January 2019, a different system for calculating the cost of redemption payments for courses of study as per article 2 of legislative decree 184/1997, in cases where the redemption payment claim is submitted before the applicant reaches 45 years of age and concerns periods that are part of the contribution calculation system.
The law of 28th March 2019 n. 26 removed the age threshold of 45 for admission to the new calculation methods. As a result of this amendment, since 30th March 2019 - the date on which law n. 26/2019 came into effect - claimants can exercise their right to redemption payment using the new calculation criteria, regardless of their age on the redemption payment claim date, provided that the additional necessary requirements are met. Significantly, the new procedures for calculating the redemption payment costs of university courses only apply to periods of study which are part of the future pension's contribution system.
In this case, the cost is determined based on the minimal cost for artisans and traders in force in the year in which the claim is submitted and based on the rate of calculation of pension benefits in force in the same period within the Dependent Workers' Pension Fund (FPLD). The reference salary amount is related to the period subject to redemption payment and is attributed temporally and proportionally to said period. The contribution is re-evaluated in accordance with the rules of the contribution system related to the application date.
For the year 2019, the minimum annual income to be taken into account for calculating the IVS contribution (disability, old-age and survivors’ contribution) payable by artisans and trade workers is € 15,878.00. The rate of 33% is applied to this amount. Therefore, for claims submitted during 2019, the cost for redemption payment of one year of a course is €5,239.74.
In addition, redemption payment may be made for the following periods and services upon claim and at the expense of the individual concerned:
- periods after 31st December 1996, up to a maximum of three years, during which the employment relationship was interrupted or suspended on the basis of specific legal or contractual provisions not covered by insurance. For example, for circumstances involving leave for family reasons, studying or suspensions for disciplinary reasons (article 5, legislative decree 564/1996; ex-INPDAP circular of 14th February 1997, n. 9);
- periods between one employment relationship and another if regarding discontinuous, seasonal or temporary jobs occurring after 31st December 1996, which were not covered by compulsory or imputed contributions (article 7, legislative decree 564/1996; ex-INPDAP circular of 14th February 1997, n. 9);
- periods after 31st December 1996 where employment activities were not carried out, in the cases of vertical, horizontal or cyclical part-time work not covered by compulsory contributions (article 8 of legislative decree n. 564/1996; ex-INPDAP circular of 14th February 1997, n. 9);
- periods corresponding to parental leave taken outside the employment relationship pursuant to article 35, paragraph 5 of legislative decree n. 151/2001. Periods not covered by insurance leading to parental leave may be redeemed up to a maximum of five years, provided that claimants can demonstrate, at the time of the claim, at least five years of contribution paid during effective employment. For applications submitted up to 31st December 2015, the right to redeem up parental leave could not be exercised concurrently with the right to redeem up a course of study. From 1st January 2016, article 1, paragraph 298 of law 208/2015 removed this regulation whereby different periods could not be combined. As a result, for claims submitted as of 1st January 2016, the right to redeem the period of parental leave and the legal period of the degree courses operates cumulatively, even for "periods" occurring prior to 1st January 2016 (INPS circular of 29th February 2016 n. 44);
- periods of leave taken for serious family reasons before 31st December 1996, article 1, paragraphs 789 and 790, law 296/2006, ministerial decree of 31st August 2007 (ex-INPDAP circular of 8th April 2008, n. 6);
- periods of work carried out abroad in countries that are not members of the European Union, in accordance with article 3, paragraph 1 of legislative decree 184/1997 (law n. 26/1980 as supplemented by law n. 333/1985 - ex-INPDAP circular of 24th February 1999, n. 12);
- periods of leave pursuant to article 3, paragraph 2 of legislative decree 184/1997 (ex-INPDAP circular of 24th February 1999, n. 12);
- periods corresponding to voluntary civil service that were not covered by any contribution, occurring after 1st January 2009 (ex-INPDAP operational note of 7th May 2009, n. 24);
- voluntary universal civil service, legislative decree n. 40 of 6th March 2017 (INPS circular of 6th July 2017, n. 108);
- periods of leave for education, pursuant to article 5 of law 53/2000, that do not exceed 11 months and are either continuous or split over the entire working life; at least five years' service in the administration is required;
- diplomas from Academies of Fine Arts and all diplomas, degrees or courses of specialisation achieved in recognised higher-level (post-secondary level) institutes or schools, when the related diploma or degree of specialisation is required to gain permanent employment or to perform certain roles (ex-INPDAP information of 25th January 2002, n. 7 (PDF 32KB)); ruling by the Constitutional Court 52/2000). Post-secondary courses of study, which are subject to the ruling of the Constitutional Court 52/2000, must be accompanied by prior qualifications demonstrating a five-year study duration at upper secondary school;
- diplomas from Academies of Fine Arts, for teachers teaching in those academies (ruling of the Constitutional Court 535/1990);
- preparatory courses for the recruitment of civil servants, organised and run by the school of public administration (ruling of the Constitutional Court 257/1991);
- training courses for school staff (ex-INPDAP operational note of 13th July 2010, n. 37);
- courses required for staff to enter into public administration services (ex-INPDAP operational note of 18th March 2010, n. 11);
- increases in services performed by Armed Forces employees - the Italian Army, Air Force, Navy, including the National Military Police (Carabinieri) - pursuant to article 5, paragraph 3 of legislative decree 165/1997 (INPS circular of 18th December 2018, n. 119);
- periods of time spent as a scholarship beneficiary if said periods did not involve contributions. The period is recognised provided that the relationship between the training institution and the scholarship beneficiary has been conducted in such a way as to establish the implementation of an activity attributable to temporary employment. It can also be recognised if it is confirmed that the scholarship certificate was required for employment in state administration roles or for participating in the related call for applications;
- services referred to in article 14 of the decree of the President of the Republic, n. 1092 of 29th December 1973, performed as:
- non-role civil servant who are not enrolled on the Compulsory General Insurance scheme (AGO);
- deputy magistrates for a period of no less than six months;
- interim or voluntary assistants in universities or higher education institutes;
- technical experts referred to in article 2, paragraph 2, of law 765/1960;
- registrar secretaries referred to in article 99 of the royal decree- aw n. 745/1924;
- civil servant hired with local contract for the needs of Italian offices based abroad;
- lecturers at foreign universities;
- lecturers of Italian language and literature at foreign universities;
- services that have established a job classification title that is not registered with the Compulsory General Insurance scheme (AGO), article 15, decree of the President of the Republic n. 1092 of 29th December 1973;
- periods of registration in professional or practical registers required to enter into service (article 13, paragraph 3 of the decree of the President of the Republic n. 1092 of 29th December 1973);
- periods between the legal and economic commencement of the appointment (contribution system, articles 8 and 142 of the decree of the President of the Republic n. 1092 of 29th December 1973);
- redemption payment of periods not covered by contributions, pursuant to article 20, paragraphs 1-5 of decree law n. 4 of 28th January 2019, converted into law n. 26 of 28th March 2019;
- additional redemption payment periods provided for by specific legal provisions.
Redemption payment claims must be submitted to the Institute exclusively by electronic means, in the following ways:
- Web - using the dedicated on-line service for claimants who have an INPS PIN, an SPID digital identity system or a National Services Card (CNS) for accessing the Institutes' telematic services;
- Multichannel Contact Centre - by calling +39 803 164 for free from Italian landlines or +39 06 164 164 from mobile phones (fees depend on the mobile network operator's tariff), if in possession of a PIN;
- Patronage Institutions and intermediaries of the Institute - using their available electronic services, even if the claimant does not have a PIN.