Inps pensions, what will happen to the separate management
Past, present and future of the Inps separate management. The deepening of Giuliano Cazzola
The Separate Management, established by Law no. 335/1995, paragraph 26, article 2 with effect from March 1996, at the INPS it is the Foreign Legion of the compulsory pension system, in the sense that it collects those workers who, before the Dini-Treu reform, did not fall into the classic categories of dependent work and autonomous (moreover '' typed '' in the categories of artisans, traders and growers) and, if freelancers, were not members of any of the Funds established over time for freelancers enrolled in orders and colleges.
To summarize, therefore, the separate management set up allowed for the attribution of pension coverage to so-called "para-subordinate" workers, that is, to subjects who carry out self-employment for habitual, even if not exclusive activity, without professional registers to which they belong and who at the time of establishment of the Fund were totally uncovered from the social security point of view. We could say that that '' new world '' was brought to the fore by the '' parasubordinates '' Fund, at that moment more to raise money than to solve a problem. Entirely governed by the contribution calculation, the rate was set at 10% (with a right of recourse to the client in the case of VAT number holders). It goes without saying that such a low rate was not suitable for ensuring a minimally adequate benefit under that regime.
However, it was evident that the establishment of a public management would have been a source of income for several decades, without expenses (because the right to a pension would have accrued at a time that, in practice, has not yet arrived) as well as a census of the real consistency of this '' middle world '' that had come to be created.
It should not be forgotten – just around the twentieth anniversary of the assassination of Marco Biagi – that the White Paper (the document that was the pioneer of the law bearing the name of the jurist) was published in October 2001. The law of social security preceded and guided labor law, helping to define the profiles of the new professions. Then, as we will see, the rates were high, albeit with differentiations relating to the various beneficiaries.
The IX Report of Social Security Itineraries summarized, at the end of 2020, the Management data. Active registered workers are 1,326,000; retirees 498,070; the active / retired ratio – crucial for the sustainability of management – is equal to 2.66; Contribution revenues before transfers amounted to 8.167 billion, outlays for pensions (net of GIAS, the management of welfare interventions) were in the order of 1.348 billion, for a positive balance of 6.819 billion. The average amount of pensions paid is also low (2,990 euros per year) but this depends – comments the Report – both on the short payment period and on the low contributions at the beginning, which have now increased considerably. The consistent level of the contribution rate and the limited possibility of using contributory seniority compared to other managements should lead to a reshaping of management and, as regards young people with unstable employment relationships, to a revision in reduction of the contribution rates even superior to those of artisans and traders; the same also applies to professionals without a register who often carry out the same activity as those registered in a register: the disparity in the rates is very considerable, ranging from an average of 14% of those registered in the Privatized Banks to 25% for those not registered in the registers.
Within the Separate Account, two macro-groups can be distinguished: a) freelancers with a VAT number not registered in a privatized pension fund (394 thousand in 2020) who exercise new professions not attributable to the more traditional ones organized in professional associations. b) members without VAT number (932 thousand in 2020) who make up a non-homogeneous group in which the following can be distinguished: 1) directors (549 thousand) holding top positions in the company, on boards of directors or boards of auditors, especially in joint-stock companies and with limited liability, mostly men (about 80%); 2) collaborators (268 thousand), ie holders essentially of coordinated and continuous collaborations or project collaborations; large is the female component. In this subgroup, 202 thousand equal to 75% are registered in the separate management only without other social security coverage and very often with a single client; it should be noted that only 17% can count on an income that ensures social security coverage for the entire year; 3) subjects in post-graduate training (88 thousand), ie doctoral students with scholarships, postdocs and fellows of various kinds, medical specialists (also here the female component is very large); 4) belonging to other residual types (27 thousand), mostly (16 thousand) door-to-door sellers.
In the varied population summarily described, the following are distinguished: the so-called "exclusives" (registered only in the Separate Account) who pay an IVS contribution rate of 25% on taxable income if professionals and 33% if collaborators, in addition to a rate of 0, 72% for non-retirement benefits, and the so-called “competitors”, ie retirees or holders of other income and therefore enrolled in other managements that pay an IVS rate of 24%.
As we have already mentioned, the separate management has a significant positive balance between contributions and benefits which makes it the only social security management of the compulsory scheme whose benefits are calculated exclusively with the contribution method. The consistent level of the contribution rate and the limited possibility of using contributory seniority compared to other managements (in fact often "separate", a name that should change) should lead to a reshaping of management and, as regards young people with unstable work, to a revision in reduction of the contribution rates even higher than those of artisans and traders; the same also applies to professionals without a register who often carry out the same activity as members of a register.
The disparity in rates is very considerable: it ranges from an average of 14% for those registered in the private banks to 25% for those not registered in the registers. Be careful though. In the contributory system (unlike the salary one) the rates are not optional; the higher, regular and stable they are, the more the amount to be multiplied by the transformation coefficient calculated on the life expectancy at the time of the pension starts increases. Woe to the scalp of the reduction in pension rates in the contributory system, then, thoughtlessly. You pay less while you work, but you get less from retirees. It is much better to adopt opting out measures (the problem is not addressed in the Report) that allow for the voluntary removal and allocation of some points of the mandatory rate (max 6) to finance a capitalization form, since the categories belonging to the separate management they have severance pay which is the main source of supply for the complementary funds of employees, at the same cost of labor and salary.
Finally, in recent weeks, at the negotiating tables between the government and the unions, we are looking for a so-called contribution guarantee pension for young people, due to the precarious and discontinuous working relationships to which they are subjected (we cite the version of the unions for the duty of Chronicles without assuming responsibility The writer could suggest a solution that was contained in a bill (AC 1299) from the same proposal in 2008 as a deputy.
'' Without prejudice to the provisions ……. for the generality of the insured, workers enrolled in the separate management ……… .. starting from 1 January 2008, the previous conversion coefficients referred to in Table A attached to the aforementioned law n. 335 of 1995, increased by 20 per cent until 31 December 2012 and by 10 per cent until 31 December 2016. For workers who have already retired, the autonomous or supplementary pension is recalculated on the basis of the aforementioned conversion coefficients increased in accordance with the previous period '' '.
What was the purpose of such a rule? We have already mentioned how at the time of its entry into force, the separate management provided for a funding rate that was little more than symbolic (first 10% then 12% and then to rise). With that measure it was intended to compensate a posteriori the contribution amount for the purposes of applying the transformation coefficient and therefore of the amount of the treatment.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/pensioni-inps-che-cosa-succedera-alla-gestione-separata/ on Sun, 20 Feb 2022 09:31:06 +0000.