Individual Pension Plans
Previdenza complementare ad adesione individuale
Coverage
Voluntary participation
- Open to anybody.
- Based on individual pension plan (Piano pensionistico individuale, PIP) featuring life insurance contracts with pension purposes or coverage through individual membership to ‘open’ pension funds.
Financing
General finances
- Fully funded personal pension plans based on contribution payments.
Contributions rates
- Contributions can be chosen freely.
- Private sector employees can transfer their TFR benefit.
State support
- Tax relief on contributions.
Administration
- Personal pension plans are offered by insurance companies.
- Supervision by the Pension Funds Supervisory Board COVIP (Commissione di vigilanza sui fondi pensione) and Ministry of Labour and Social Policies and Ministry of Economy and Finances.
Qualifying Conditions
- Retirement age tied to statutory retirement age; payments before reaching the retirement age are possible under specific conditions (cf. occupational pensions).
- At least 5 years of participation.
Benefits
Pension payments
- Based on accumulated capital through contribution payments and investment yields, minus administrative costs and costs/fees of pension provider.
- Life-long annuity paid monthly (using unisex mortality tables); or lump sum payment up to 50% of capital, the remaining amount is for the annuities; or total amount as lump sum payment, but only if 70% of the accumulated capital result in an annual pension which is lower than 50% of the social allowance.
Taxation and social security contributions
- Pension payments are subject to income tax; favourable tax rates on yields; favourable tax rates for annuities and lump sum payment (varying between 15% and 9%).
- No social security contributions.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Voluntary participation
- Open to anybody.
- Based on individual pension plan (Piano pensionistico individuale, PIP) featuring life insurance contracts with pension purposes or coverage through individual membership to ‘open’ pension funds.
General finances
- Fully funded personal pension plans based on contribution payments.
Contributions rates
- Contributions can be chosen freely.
- Private sector employees can transfer their TFR benefit.
State support
- Tax relief on contributions.
- Personal pension plans are offered by insurance companies.
- Supervision by the Pension Funds Supervisory Board COVIP (Commissione di vigilanza sui fondi pensione) and Ministry of Labour and Social Policies and Ministry of Economy and Finances.
- Retirement age tied to statutory retirement age; payments before reaching the retirement age are possible under specific conditions (cf. occupational pensions).
- At least 5 years of participation.
Pension payments
- Based on accumulated capital through contribution payments and investment yields, minus administrative costs and costs/fees of pension provider.
- Life-long annuity paid monthly (using unisex mortality tables); or lump sum payment up to 50% of capital, the remaining amount is for the annuities; or total amount as lump sum payment, but only if 70% of the accumulated capital result in an annual pension which is lower than 50% of the social allowance.
Taxation and social security contributions
- Pension payments are subject to income tax; favourable tax rates on yields; favourable tax rates for annuities and lump sum payment (varying between 15% and 9%).
- No social security contributions.
Legal Basis: Legislative Decrees No. 124/1993; No. 47/2000; No. 252/2005; Income Tax Act No. 917/1986 (Testo unico delle imposte sui redditi, TUIR).