Transcript The Social Security in Italy (ppt version 108Kb)

The Social Security in
Italy
Project Communicate October 2006
Law
Social Security “1st pillar”
Basic pension is covered by D.L.
503/1992 and L. 335/1995
Financial structure
Pay as you go
Social security
contribution
Total percentage: 32,70%
Of which:
 For
employers 23,81%
 For employees 8,89%
Of which:
 For
social security benefits
 For assistance benefits
The Income Tax on the
annual salary
From 0 to 26.000
From 26.001 to 33.500
From 33.501 to 100.000
Over 100.001
23%
33%
39%
43%
The impact Income Tax
on the annual salary:
EXAMPLE: ANNUAL SALARY 40.000
(23% TILL 26.000 = 5.980 + FROM
26.001 TO 33.500 (33%)=2.475 +
FROM 33.501 TO 40.000 (39%)=2.535
Total=10.990 (average 27,47%)
Typology of Benefits
Life annuities
Form of pension
provided for
1. OLD AGE
F 60 – M 65
2. SENIORITY
AGE F and M 57 years old (from
01/01/08 60 years old) and 35
contribution years (years of job);
Or, 39 contribution years (from
01/01/08 40 contribution years)
Form of pension
provided for
3. SURVIVORS’BENEFITS
4. DISABILITY
The substitution rate
The ratio between pension and the
last salary is 80%
Pension adjustment
Indexation to inflation or cost of living
State Pension
expenditure
13,5% of GDP in 2001 it will rise to
15,7% in 2040 if no further reforms
are taken
SUPPLEMENTARY
FUNDS (2nd Pillar)
THE 98,3% OF THE ITALIAN BANKS
(2004) HAVE SUPPLEMENTARY
FUNDS ARRANGEMENTS
SUPPLEMENTARY
FUNDS ARE:
OPTIONAL
COMPANY FUNDS
TIPOLOGY OF FUNDS
PENSION FUNDS
SOURCES OF
SUPPLEMENTARY FUNDS
COLLECTIVE AGREEMENTS
(NATIONAL LEVEL & COMPANY
LEVEL)
COMPANY REGULATIONS
FINANCIAL SYSTEM
DEFINED CONTRIBUTION
FUNDED
FINANCIAL SYSTEM
CONTRIBUTION:
TOTAL PERCENTAGE 4%
FOR THE EMPLOYERS 2%
FOR THE EMPLOYEES 2%
FORM OF PENSION
PROVIDED FOR
OLD AGE:
1.
2.
3.
4.
5.
6.
AGE
CONTRIBUTION
DISABILITY
SURVIVOR’S BENEFITS
ILLNESS
LABOUR ACCIDENTS
BENEFITS
MIXED WHEN YOU RETIRED
EXEMPTION OF CONTRIBUTIONS AND
TAXATION OF INCOMES AND BENEFITS
(2% Employer 2% Employee)
In case of TERMINATION of the
EMPLOYMENT RELATIONSHIP the
WORKER can REDEEM HIS PENSION
ENTITLEMENT or transfer HIS position
TO ANOTHER FUND
MAIN PROVIDERS
Fund asset management is entrusted
to qualified financial intermediares:
savings, management companies,
banks, stock brockerage
companies and insurance
companies
Federazione
Autonoma
Bancari
Italiani
International & Projects Department
“Communicate Project”
October 2006