“MONTI DECREE”: PENSIONS REFORM

The Law Decree No. 201/2011 concerning urgent provisions for growth, equity and consolidation of public accounts (so-called “Monti Decree”), passed on December 4th, 2011 and in force starting from December 6th, 2011, contains also the pensions reform. Below, briefly, the main new provisions.

• Contributive system calculation: extension to all the employees of the contributive system for calculating pensions with the pro rata system.
• Seniority pension: cancellation of seniority pensions (i.e. those that were currently provided with the system of the so-called “quote”); therefore, in 2012 the employees will be allowed to the old-age pension or to the early retirement only.
• Old-age pension: the old-age pension will be reached at the age of 66 and with at least 20 years of contribution.
• Early retirement pension: possibility to retire with 42 years and 1 month of contributions for men and 41 years and 1 month for women, for 2012; if the retirement occurs before 62 years of age a penalty of 2% per year of advance should be applied.
• Female employees of private sector: opportunity for female employees of the private sector to retired with 62 years of age, with progressive increase up to 66 years of age in 2018. 
• “Finestre”: coincidence between the time of retirement requirements accrual and the pension perception (abolition of the “Finestre” system).
• Exclusion: application of the previous provisions to subjects who reach the requirements within December 31st, 2011, and – within the limit of 50,000 and even if they reach the necessary requirements for retirement after December 31st, 2011 –employees in mobility or in long mobility, employees who collect the extraordinary payment by the solidarity sector funds, employees authorized to the continuation of the voluntary contribution and employees who are exempted from the working activity.