Old Age Pension Scheme for Public Sector Employees
Gestione dei dipendenti pubblici
Coverage
Mandatory insurance1
- The scheme for state employees (Cassa per i Trattamenti Pensionistici dei Dipendenti dello Stato, CTPS) covers police staff, ministries, judges, military staff of the Armed Forces, diplomatic personnel, prefectural personnel and professors in public universities, teaching and non-teaching staff in schools.
- Public sector employees of other administrations are covered by the scheme for local authorities (Cassa per le Pensioni dei Dipendenti degli Enti Locali, CPDEL), such as employees of the regions (except Sicily), provinces, municipalities, local health authorities, hospitals of the National Health Service (non-medical staff), municipality-owned companies, some quasi-state agencies.
- Three minor schemes: for preschool teachers and teachers in elementary schools (Cassa per le Pensioni degli Insegnanti d’asilo e di scuole elementari parificate, CPI); for health workers (Cassa per le pensioni dei sanitari, CPS), including medical employees of the National Health Service, medical and veterinary surgeons employed by municipalities, provinces and public welfare and charity institutions; government medical and veterinary surgeons not entitled to a state pension; for officials of the judiciary (Cassa per le pensioni degli ufficiali giudiziari, CPUG).
Financing
General finances
- Mainly PAYG-financed from insurance contributions.
- State finances any deficit.
Contribution rates to mandatory insurance
- Fixed rate of monthly gross earnings with contribution assessment ceiling.
- Contribution rates vary: 33% for state employees (8.8% employee share); 32.65% for the local authorities and healthcare sectors (8.85% employee share).
- The employer’s share is to be paid by the respective public authority (e.g. state, local authorities, etc).
- Employees have to pay an additional 1% solidarity contribution on annual earnings exceeding EUR 47,379 (EUR 3,948 per month) without impact on pension entitlement.
Administration
- Managed by National Institute for Social Security (INPS).
- Supervised by Ministry of Labour and Social Policies and Ministry of Economy and Finance.
Qualifying Conditions
Qualifying conditions
- Standard retirement age is67, with automatic termination of employment contract.
- Derogations from the adjustment to life expectancy in case of arduous work (e.g. nurses in hospital shift turn work; teachers in early childhood education and care facilities, public transport bus drivers).
- Special age conditions for various groups (e.g. public employees in the defence, security and rescue sectors, professors of public and other university staff).
- Non age-related conditions: Same as for old age pension scheme for private sector employees (FPLD).
Early retirement
- Same as for old age pension scheme for private sector employees (FPLD).
Deferred retirement
- Only as an exception. Employees can opt to remain in service up to the age of 70 if they have not yet accumulated the required contribution years at the standard retirement age.
Combining employment & retirement
- Automatic termination of employment relationship at the statutory retirement age. Pensioners cannot be re-employed by public administrations, otherwise same conditions as for private sector employees (see old age pension scheme for private sector employees (FPLD)).
Benefits
Pension benefits
- Same as for old age pension scheme for private sector employees (FPLD).
Benefit calculation
- Same as for old age pension scheme for private sector employees (FPLD).
- Derogations for certain categories or functions (e.g. employees in the defence and security sectors, diplomatic and prefectural staff may obtain higher benefits according to the nature of the services they provide).
- State employees (civil or military) and local authorities staff who terminate their service without fulfilling requirements to obtain an old age pension are entitled to a special one-time flat-rate benefit (indennità una tantum) if they have completed at least one year of service.
- Indexation: Same as for old age pension scheme for private sector employees (FPLD).
Taxation and social security contributions
Same as for old age pension scheme for private sector employees (FPLD).
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Mandatory insurance1
- The scheme for state employees (Cassa per i Trattamenti Pensionistici dei Dipendenti dello Stato, CTPS) covers police staff, ministries, judges, military staff of the Armed Forces, diplomatic personnel, prefectural personnel and professors in public universities, teaching and non-teaching staff in schools.
- Public sector employees of other administrations are covered by the scheme for local authorities (Cassa per le Pensioni dei Dipendenti degli Enti Locali, CPDEL), such as employees of the regions (except Sicily), provinces, municipalities, local health authorities, hospitals of the National Health Service (non-medical staff), municipality-owned companies, some quasi-state agencies.
- Three minor schemes: for preschool teachers and teachers in elementary schools (Cassa per le Pensioni degli Insegnanti d’asilo e di scuole elementari parificate, CPI); for health workers (Cassa per le pensioni dei sanitari, CPS), including medical employees of the National Health Service, medical and veterinary surgeons employed by municipalities, provinces and public welfare and charity institutions; government medical and veterinary surgeons not entitled to a state pension; for officials of the judiciary (Cassa per le pensioni degli ufficiali giudiziari, CPUG).
General finances
- Mainly PAYG-financed from insurance contributions.
- State finances any deficit.
Contribution rates to mandatory insurance
- Fixed rate of monthly gross earnings with contribution assessment ceiling.
- Contribution rates vary: 33% for state employees (8.8% employee share); 32.65% for the local authorities and healthcare sectors (8.85% employee share).
- The employer’s share is to be paid by the respective public authority (e.g. state, local authorities, etc).
- Employees have to pay an additional 1% solidarity contribution on annual earnings exceeding EUR 47,379 (EUR 3,948 per month) without impact on pension entitlement.
- Managed by National Institute for Social Security (INPS).
- Supervised by Ministry of Labour and Social Policies and Ministry of Economy and Finance.
Qualifying conditions
- Standard retirement age is67, with automatic termination of employment contract.
- Derogations from the adjustment to life expectancy in case of arduous work (e.g. nurses in hospital shift turn work; teachers in early childhood education and care facilities, public transport bus drivers).
- Special age conditions for various groups (e.g. public employees in the defence, security and rescue sectors, professors of public and other university staff).
- Non age-related conditions: Same as for old age pension scheme for private sector employees (FPLD).
Early retirement
- Same as for old age pension scheme for private sector employees (FPLD).
Deferred retirement
- Only as an exception. Employees can opt to remain in service up to the age of 70 if they have not yet accumulated the required contribution years at the standard retirement age.
Combining employment & retirement
- Automatic termination of employment relationship at the statutory retirement age. Pensioners cannot be re-employed by public administrations, otherwise same conditions as for private sector employees (see old age pension scheme for private sector employees (FPLD)).
Pension benefits
- Same as for old age pension scheme for private sector employees (FPLD).
Benefit calculation
- Same as for old age pension scheme for private sector employees (FPLD).
- Derogations for certain categories or functions (e.g. employees in the defence and security sectors, diplomatic and prefectural staff may obtain higher benefits according to the nature of the services they provide).
- State employees (civil or military) and local authorities staff who terminate their service without fulfilling requirements to obtain an old age pension are entitled to a special one-time flat-rate benefit (indennità una tantum) if they have completed at least one year of service.
- Indexation: Same as for old age pension scheme for private sector employees (FPLD).
Taxation and social security contributions
Same as for old age pension scheme for private sector employees (FPLD).
1 Cf. the special substitutive pension scheme provided by the Sicily Region (Fondo Pensioni Sicilia) under regional legislation; further special schemes are available for employees and elected subjects of the Chamber of Deputies and of the Senate, providing for life annuities, partially based on contributions; judges and employees of the Constitutional Court; staff of the presidency of the Republic; elected subjects of Ordinary Regions and Special Statute Regions (required to pay notional contributions). Most of the special schemes, e.g. the scheme for former deputies and senators have been remodeled on the basis of a notional defined contribution (NDC) system, cf. regulations on pension benefits for deputies; on pension benefits for senators (2012).
Legal Basis: Decree of the President of the Republic(DPR) No. 1092/1973 (Testo unico delle norme sul trattamento di quiescenza dei dipendenti civili e militari dello Stato); Laws No. 335/1995; No. 214/2011; No. 114/2014; D.L. No. 4/2019, converted into Law No. 26/2019; Law No. 160/2019; Income Tax Act No. 917/1986 (Testo unico delle imposte sui redditi, TUIR).