Totalization allows workers who have paid contributions into multiple funds, social security schemes or pension funds to be entitled to a unified seniority pension.
Unlike the aggregation of insurance periods, which incurs charges, totalization is completely free.
The pension is granted to dependent workers, self-employed and freelance professionals, who have paid contributions in various funds, social security schemes or pension funds.
The seniority pension under the totalization scheme is recognised with deferred effective date of 18 months from the date when the envisaged personal and contributory requirements have been met.
The pension payments is recognised from the 1st day of the month following the 18th month to workers who submit the claim for seniority pension under totalization after the 18 months following the date when the requirements have been met.
In addition, for retirement pay under totalization that accrues from 1 January 2012, the postponement of the effective date provided for by Law no. 111 of 15 July 2011 applies.
Therefore, if the requirement is met in:
- 2012, the seniority pension under totalization can be collected once 19 months from the date of completion of the requirement have elapsed;
- 2013, the seniority pension under totalization can be collected once 20 months from the date of completion of the requirement have elapsed;
- 2014, the seniority pension under totalization can be collected once 21 months from the date of completion of the requirement have elapsed.
What am I entitled to?
The amount is determined "pro-quota" by each pension scheme concerned, in relation to the accrued registration periods.
Generally, pension shares paid by public social security institutes are calculated using the contributory system rules.
However, if the worker registered before 1996 has already completed the minimum requirements for the right to an autonomous pension in one of these schemes, a wage-based scheme/mixed calculation is carried out.
The interested party has the right to claim the most favourable calculation system if it possesses such rights.
Seniority pension disbursed under the totalization scheme:
- the normal IRPEF taxation is provided for similar to all the other pension payments deriving from contributions;
- the supplements by way of automatic revaluation of pensions are applied with reference to the unified benefit considered as a whole, based on the provisions of the law in force and at the expense of the scheme concerned;
- disbursement of family payments is envisaged;
- any withholding taxes are applied;
- no deductions are made for income from employment or self-employment;
- the integration to the minimum payment is not recognised;
- social supplements are granted provided that among the "quotas" that comprise the pension, at least one of the schemes with respect to which this benefit is provided exists, if the required income conditions are met.
The total amount of the pension benefit resulting from the totalization is paid by INPS, also on behalf of other institutes with which specific agreements have been entered into.
INPS provides for the payment of pensions even in cases when no contributions were made with respect to the former.
The right to seniority pension under the totalization scheme is granted upon completion of a 40 year period (2,080 weekly contributions) and if the additional requirements are met, different from those of age and contribution period, provided by individual systems for access to old-age pension (termination of the employment relationship, cancellation from the professional register, etc. ).
The contributory requirement must be met by excluding the imputed contributions credited for unemployment and illness.
Starting from 1 January 2013, the contributory requirement is adjusted for life expectancy.
How can I claim?
The claim must be submitted by the worker to the last pension institution with which he is enrolled or had been enrolled in case of termination of the work activity.
The claim must indicate all institutes where the employee contributed. The office that receives the claim starts the procedure with the other institutes concerned.
The claim for seniority pension under totalization must be submitted to INPS online via the dedicated service.