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Here is the true state of INPS pensions

2 years ago babelfish

Here is the true state of INPS pensions

What emerges on pensions from the INPS annual budget. Giuliano Cazzola's analysis

For those interested in problems of work, social benefits, pension and welfare systems, the annual reports of INPS constitute a source of knowledge and information worthy of a university exam. The topics, data and statistics that are published open up scenarios for political and economic reflection and provide ample policy indications, precisely because they allow the verification, effects and monitoring of the policies prepared and implemented. In the past, INPS limited itself to presenting the budget and final balances or the backbone of management. In this way, the state of health of the ''pension factory '' emerged immediately, management by management. If there is a point to be made to the newly minted Reports it is precisely this: to find the financial and managerial data you have to go and look for them patiently and be satisfied with what '' the convent passes by ''. In short, in the XXI Report , relating to the year 2021, presented yesterday in a solemn form, it is necessary to arm yourself with patience until you get to p. 422, where the main financial statement figures are summarized.

Financial management for the year 2021 closed with a surplus of 2,057 million, which is the difference between 486,173 million of assessments and 484,116 million of commitments, due to the balances:

  • current portion (1,610 million);
  • in capital account (447 mln).

Cash financial management shows a positive differential of 9,529 million, resulting from collections for 477,978 million and payments for 468,449 million. The main items of collections are made up of:

  • 249,170 mln from production collections, net of tour items;
  • 142,306 mln from current transfers of the State for the financing of the services borne by the State budget, including those established by art. 37 of Law no. 88/89, those intended for disabled civilians, as well as the other measures established by the regulations for the financing of social inclusion benefits, income support and family support;
  • 12,085 mln from advances to be paid by the state budget for advances to the needs of pension funds.

In particular, for the year 2021, the advances to be borne by the state budget guaranteed coverage of the Institute's cash needs, amounting to a total of 2,557 million. Consequently, the increase in cash and cash equivalents was contained in 9,529 million.

From an economic and financial point of view (this is the most significant figure), the year 2021 closed with a negative economic result of 3,711 million, an improvement of 21,489 million compared to 2020, when the operating result was equal to – 25,200 million . As a result of the negative economic result, shareholders' equity at the end of the year went from 14,559 million (31/12/2020) to 10,848 million (31/12/2021).

With regard to current revenues, the contributory revenues amounted to 236,893 million, with an increase of 11,742 million (+ 5.2%) compared to the figure ascertained in the financial statements of the previous year (225,150 million). The increase is largely attributable to the resumption of production activities following the contraction that occurred in 2020 due to the COVID-19 pandemic. In fact, the amount of contributory revenues in the pre-pandemic year 2019 was 236,211 million compared to 236,893 million in the 2021 report (+682 million).

Current transfers amounted to a total of 144,945 million, with a decrease of 243 million on the corresponding data for 2020 (145,189 million). They refer for 144,789 million to transfers from the State, of which 144,215 million for the management of welfare interventions and support for pension schemes (GIAS), and for 156 million to transfers from other public sector bodies. The recovery that took place in 2021 has also produced its effects on the measures aimed at supporting businesses and economic operators, affected by measures of suspension, reduction or interruption of working activity, have reduced their scope, with a total value of 11,509 million. , compared to 18,023 million in 2020. In this regard, the charges incurred by the Institute to provide redundancy benefits or ordinary allowance paid by the State with the reason COVID-19 amounted to 3,566 million. For the redundancy fund in derogation, intended for workers not protected by the ordinary protection instruments, charges for a total of 3,417 mln were ascertained. These charges for salary supplements, subject to recast to the Institute, include the notional coverage, aimed at keeping the beneficiary's insurance account funded during the period of inactivity. The allowances for workers in the entertainment and tourism sector, agricultural, seasonal, intermittent and other categories not covered by other interventions, totaled 2,323 million. Another 2,203 million related to Emergency Income, introduced to guarantee income for families in difficult conditions. A notable increase in expenditure occurred with regard to the measures aimed at granting exemptions and tax relief, in order to encourage a relaunch of production in the sectors most affected by the pandemic crisis. The costs incurred for the reliefs introduced in the period following the outbreak of the pandemic amounted to 4,162 million, compared to 2,158 million in 2020. The most significant refer to the contribution relief of 30% for employers whose headquarters are located in disadvantaged areas of the South (2,995 million) and partial exemption from the payment of contributions due by self-employed workers.

The total of current outgoings amounted to a total of 384,772 million with an increase of 7,896 million (+ 2.1%) on the corresponding figure for 2020 (376,877 million). This aggregate is affected by operating expenses for 2,373 million and those for institutional services for 359,843 million. substantially in line with the previous year; in fact, there was a slight increase of 326 million (359,517 in 2020). However, the report highlights that if the sum is more or less the same as in the previous year, the addenda nevertheless change due to the different needs posed in the two years considered. In fact, analyzing the detail of the expenditure, it can be seen that the benefits in support of income, overall, recorded a decrease of 9,188 million compared to 2020, largely due to a decrease in unemployment benefits (-1,956 million), COVID-19 bonus (-3,678 million) and wage supplementation paid by the State (-1,487 million) and by the Institute (-2,756 million). Against the sharp decline in income support benefits in the comparison 2021/2020, the trend in pension expenditure, on the other hand, continues the structural trend of annual increase due to the combined effect of the demographic composition of the population, an increase in the average amounts of pensions and of "Quota 100". Moreover, in 2021 the effects of the extension to civil invalids, included in the age group between 18 and 60 years, of the increase provided for by law since 2001 have unfolded. Overall, the increase in 2021 over 2020 is equal to to 4,905 million, while on 2019 it amounted to 11,308 million. Pensions amounted to a total of 273,959 million (including 57,151 million in withholding taxes) compared to 269,055 million in the previous year. Also for the segment of social inclusion there was an increase in the burden equal to 3,348 million, mainly due to changes of equal sign in the Income and Citizenship Pension (+1.673 million compared to 2020 and +5.046 million compared to 2019) and in the Income of Emergency, not present in 2019 and equal to 2,203 in 2021 with an increase of 1,378 compared to the 2020 report. The treatments in favor of the family do not vary significantly in the total, albeit with an increasing trend. Instead, their composition has changed. In fact, the allowances to the family unit increased by 1,488 million compared to 2020, mainly due to the introduction of the temporary allowance for self-employed and unemployed workers and the increase in the amount of ANF paid pursuant to Legislative Decree no. 79/2021. On the other hand, the benefits due to Covid-19 have decreased (Baby-sitting bonus and Covid-19 parental leave).

Pensions always represent the '' cross and delight '' of INPS and of the heart of the Italians. As of December 31, 2021, there were approximately 16 million pensioners, of which 7.7 million males and 8.3 million females. The gross amount of pensions paid overall is 312 billion euros. Although they represent the majority share of the total number of pensioners (52%), females receive 44% of pension income, or 137 billion euros against 175 billion for males). The average monthly amount of income received by men is 37% higher than that of women.

Of the Italian pensioners, approximately 97% receives at least one benefit from INPS and has an average monthly gross income of approximately 1,640 euros. The remaining 3% does not benefit from any benefits from the INPS, but receives Inail or war pensions or pensions from professional funds, pension funds and minor institutions. Social security treatments, i.e. seniority / early retirement pensions, old age, invalidity and survivor's pensions, absorb 92% of the expenditure, while welfare ones, i.e. benefits for disabled civilians and pensions and social allowances, the remaining 8%. The item that has the greatest impact on expenditure are old-age / early retirement pensions with 56% of the total, followed by old-age pensions which absorb 18% and survivors' pensions which absorb 14%. The benefits to the disabled civilians represent 7% of the total; lastly, there are invalidity pensions and pensions and social allowances which represent 4% and 2% respectively. Retirement / early retirement pensions remain those of the highest amount, € 1,989 per month on average compared to € 1,061 for old-age pensions and € 800 for invalidity and survivors' pensions. The average amounts of welfare benefits are lower, and are around 470 euros per month. In 2021, 48% of the social security benefits provided by INPS were paid by the Employee Pension Fund, with an average gross monthly amount of approximately 1,200 euros; 30% to be paid by the Self-employed and Parasubordinated Workers Management (average amount of 800 euros) and 18% by the Public Workers Management (average amount of 1,950 euros), with no significant changes compared to the previous year.

Overall – certifies the XXI Report – in the last twenty years, the average gross annual amount of pension treatments has grown by 2.9% per year. The increase is partly linked to the growth in nominal wages which, in the period considered, in any case amounted to just under 2% per year, and above all to the implementation of the reforms that extended working life. The number of retirees, on the other hand, has stabilized in the last five years after the decline that began in 2008 when the reforms launched at the end of the 1990s began to show their effects on the stock of existing treatments. In the decade 2012-2021, this decline led to an average annual theoretical saving of approximately 11 billion euros.

From the analysis of gender differences in income classes, always taking into account all social security benefits provided by INPS, it is noted that females are more numerous than males in the lower pension income classes (up to 1,500 euros per month), while the situation is reversed in those of higher income (over 1,500 euros per month). In the last class (over 3,000 euros per month), males represent 70% of the recipients.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/ecco-il-vero-stato-delle-pensioni-inps/ on Tue, 12 Jul 2022 07:53:40 +0000.