Redemption of periods not covered by contribution

Retroactive payments of periods not covered by contributions are governed by article 20, paragraphs 1-5 of Decree-Law no. 4 of 28 January 2019, converted into Law no 26 of 28 March 2019)

It is an option that allows to redeem, on an experimental basis for the 2019-2021 three-year period and up to a maximum of five years, periods not subject to social security contributions and not already covered by contributions, however paid and credited, to forms of mandatory social security.

The right of redemption can be exercised by members enrolled in the Compulsory General Insurance (AGO) for invalidity, old age and survivors of dependent workers and in the substitute and exclusive forms thereof, and in special social security scheme of self-employed workers, and in the Separate pension scheme referred to in article 2, paragraph 26, Law no. 335 of 8 August 1995, without seniority contributions as of 31 December 1995 and not already pensioners.

Periods after 31 December 1995 and before 29 January 2019 may be redeemed in whole or in part for a maximum of five years, even if they are not continuous.

The period must be between the year of the first and that of the last contribution, in any case paid (mandatory, imputed, by redemption) in the Compulsory General Insurance (AGO) for invalidity, old age and survivors of dependent workers and in substitute and exclusive forms thereof, as well as in the special social security scheme of self-employed workers and in the Separate Pension Scheme referred to in Article 2, paragraph 26, Law no. 335/1995.

The period to be redeemed must not be covered by mandatory, imputed, voluntary or redemption contributions, not only at the Fund to which the claim is directed, but also at any form of mandatory social security. Furthermore, only periods not subject to contributory obligations are redeemable.

The retroactive payment of contribution charge can be paid as a lump sum or in a maximum of 120 monthly instalments, each amounting to no less than € 30, without applying interest to instalments. The charge cannot be paid in instalments if the retroactive payment of contributions must be used for the immediate payment of a direct or indirect pension or in the event that they are key for the acceptance of a claim for authorisation to make voluntary payments; if this occurs during the deferment already granted, the sum still due must be paid as a lump sum. Retroactive payment of contribution periods are equal to periods of work.

Requirements

To enforce the right of retroactive payment of contribution, the interested party must enrol in one of the social security schemes referred to in the regulation itself.

Furthermore, the interested party must not hold qualifying contributions as at 31 December 1995. Any seniority contributions prior to 1 January 1996 determines the cancellation of the retroactive payments already made, with amortisation of the charge to the party who paid such with no additional interest.

A further condition for access to the benefit is that the beneficiary does not already collect pension payments under any mandatory pension scheme.

When can I claim?

The redemption claim can be submitted during the 2019-2021 three-year period. The claim can be submitted by 31 December 2021 (deadline for the exercise of the retroactive payment of contribution right).

How can I claim?

The claim can be submitted by the person concerned or his/her survivor or, if second-degree relative, by his parent or relative. In all cases, the cost paid is deductible from the gross tax in the amount of 50%, with a breakdown into five fixed annual instalments of equal amount in the year when incurred and in subsequent years.

For private sector workers, the retroactive payment of contribution claim can also be submitted by the insured party's employer allocating, for this purpose, the work bonuses due to the worker. In this case, the charge paid is deductible from the business income and from self-employment and, for the purposes of determining the income from employment, it falls under the case referred to in article 51, paragraph 2, letter a) of the Presidential Decree no. 917 of 22 December 1986.

If the claim is submitted by the parent or relative, or by the employer, the consent of the interested party must be acquired to submit the claim.

The claim by the person concerned or their survivor must be submitted online to INPS through the dedicated service. Alternatively, the claim can be submitted:

by phoning the contact centre at 803 164 (free from Italian landlines) or 06 164164 from mobile phones;
by telematics services offered by patronage institutes and intermediaries thereof.

If the claim is submitted by the employer, parents and second-degree relatives, pending the implementation of the procedure for the electronic submission, the claims must be submitted using the form available online.