The pension fund is a supplementary pension form , which can
be joined voluntarily, on a collective and individual basis.
In this article we will find out:
·
What are pension funds
·
How a pension fund works
·
Pension fund benefits
·
Tax advantages of the pension fund
·
Supplementary pension and early retirement
What are pension funds
Pension funds are complementary pension forms.
They have the purpose of collecting the contributions of the
subjects who adhere to them and invest them, and then disburse , at the time of
retirement, an annuity that supplements the pension allowance from compulsory
social security, or, in the cases provided for, a capital for their own
projects once closed working life.
Closed pension funds
Closed-end or negotiated pension funds are set up as part of
collective , national or company bargaining .
The so-called territorial pension funds also belong to this
type, ie established on the basis of agreements between representatives of
employers and workers belonging to a specific territory.
Some sectors have a category fund (eg metalworkers). The
worker who joins it also benefits from the employer's contribution.
Open pension funds
Open pension funds are set up by banks, insurance companies,
asset management companies (SGR) and stock brokerage companies (SIM).
Open pension funds can collect subscriptions on an
individual and collective basis.
Individual pension
plans (PIP)
PIPs are complementary pension forms established by
insurance companies . PIPs can only collect memberships on an individual basis.
How a pension fund works
The pension fund works with capitalization : the
contributions paid are destined to an individual account in the name of the
member, to which the returns obtained over the years are also added.
Those who subscribe to the fund can choose between different
lines of investment or sub-fund, depending on their risk profile and the time
horizon available, as there is a difference between joining a 20-year rather
than a 50-year fund.
The sub-funds are classified as follows, with an
increasing risk profile :
monetary , which invest, for example in bonds and short-term
government securities;
bond , pure and mixed. Mixed companies invest mainly in
bonds but not exclusively;
balanced , they generally invest half in stocks and the
other half in bonds;
equity .
As we have seen, those who adhere to a category pension fund
obtain, in addition to their own, the contribution of the employer.
We remind you that the employer can also pay contributions
in PIPs (Individual Pension Plans) and in open pension funds.
Pension fund and severance pay
In the case of employees in the private sector, tacit
membership is also envisaged for the transfer of the TFR to the pension fund of
their category.
It is a mechanism that is triggered through silent consent
in the event that the worker, after 6 months from hiring , does not choose how
to allocate the severance pay, between the two options:
keep it in the company;
allocate it to supplementary pensions .
This is for the new hires.
It should be noted that the worker can, at any time, decide
to join the pension fund , by filling in the relevant form and starting the
payments. In the latter case, the severance indemnity accrued up to the moment
of the transition to the pension fund remains in the company, while the
subsequent provisions go to the supplementary pension fund.
Pension fund benefits
Once the legal requirements for retirement have been met,
the fund can disburse its benefits, based on the capital accumulated over the
years, including returns , and net of taxes and expenses .
The service can be provided in different ways :
immediate life annuity , therefore with a monthly allowance
coming from the supplementary pension
that is added to that received from the compulsory public pension. The
supplementary pension can provide for reversibility , as for the public
pension, in the event of the retiree's death;
50% of life annuity and 50% of capital , therefore you get
half of the capital accrued in a single solution and the other half in the form
of a supplementary pension;
100% capital , in the event that the annuity that would be
obtained was lower than a certain amount parameterised to the INPS social
allowance.
Anticipation
During the accumulation period, before retirement,
therefore, and under certain conditions, it is possible to request advances :
at any time for documented extraordinary healthcare expenses
, connected to interventions and therapies resulting from very serious
situations relating to the member, spouse and children (maximum 75% of the
accrued amount);
after 8 years from joining for documented purchase or
renovation costs of the first home , for the member or his / her children
(maximum 75% of the accrued amount);
after 8 years from joining for personal reasons (maximum 30%
of the amount accrued).
Redemption
It is also possible to request and obtain the redemption of
the capital accrued up to that moment.
The conditions change according to the type of adhesion to
the fund:
redemption with membership on an individual basis . It is
possible to obtain the 50% redemption if the person has not worked for over a
year, and total if he has not worked for at least 4 years;
redemption with membership on a collective basis . It is
possible to obtain the redemption under the conditions already mentioned, but
also when the person stops working or changes company.
Tax advantages of the pension fund
Those who join a pension fund, obtain a series of tax
advantages , in force since January 1, 2007, compared to other forms of
investment:
contribution phase. The contributions paid can be deducted
in the tax return , with a maximum annual ceiling of € 5,164.57;
management phase. The returns accrued during the management
of the individual account are subject to a favorable tax rate at a rate of
12.5% on the returns from Government Bonds, and 20% on the returns from other
uses (shares, bonds, etc.). The minimum tax applied to all other types of
financial returns is 26%;
performance phase. Annuity or capital received at the end of
the working life, are taxed at a rate of 15% , which is reduced by 0.30% per
year, for each year of stay in the Pension Fund beyond the fifteenth, up to a
minimum rate 9%.
Supplementary pension and early retirement
We close with a final benefit deriving from the
supplementary pension: the possibility of anticipating the moment of retirement
over time without waiting to accrue the requirements for the old-age pension.
In fact, there is the opportunity to request, before the
effective moment of retirement, a temporary annuity called RITA (Anticipated
Temporary Supplementary Annuity) .
This allows you to have a monthly income before reaching
retirement proper.
The requirements for accessing RITA are participation in a
supplementary pension scheme for at least 5 years, and, alternatively:
cessation of working activity , with maturity of the age for
the old age pension in the compulsory membership scheme within the following 5
years, and overall contribution requirement of at least 20 years in the
compulsory membership schemes;
unemployed for a period of time exceeding 24 months, with
maturity of the age for the old age pension in the compulsory membership scheme
within the following 10 years.
You can decide to convert to RITA :
all the capital accumulated in the Pension Fund;
only a part of the capital, in order to then be able to
request the supplementary pension with the remaining one.
