First law: 1919.

Current laws: 1952 (Law No. 218, on Pension Reorganization), 1981 (Law No. 155 of 23 April), 1982 (Law No. 297 of 29 May), 1983 (Law No. 638 of 11 November), 1984 (Law No. 222 of 12 June), 1985 (Law No. 140 of 15 April), 1989 (Law No. 88 of 9 March), 1992 (Decree-Law No. 503 of 30 December), 1995 (Law No. 335, on pension reform), 1997 (Law No. 449 of 27 December), 1999 (Law No. 448 of 23 December), 2000 (Law No. 388 of 23 December), 2001 (Law No. 448 of 28 December), 2002 (Law No. 289 of 27 December), 2003 (Decree-Law No. 276 of 10 September), 2007 (Decree-Law 247 of 24 December), 2008 (Law No. 133 of 6 August), 2009 (Law No. 2 of 28 January), and 2009 (Law No. 102 of 3 August).

Type of program: Notional defined contribution (NDC) and social insurance system.

Notional defined contribution (NDC): All employed persons, including household employees, whose insurance period began on or after January 1, 1996.

Voluntary coverage for contract and professional workers not covered by any specific fund.

Special systems for public-sector workers and self-employed persons.

Mixed social insurance and NDC: All employed persons, including household employees, with less than 18 years of contributions as of December 31, 1995.

Voluntary coverage for contract and professional workers not covered by any specific fund.

Special systems for public-sector workers and self-employed persons.

Social insurance: All employed persons, including household employees, with at least 18 years of contributions as of December 31, 1995.

Voluntary coverage for contract and professional workers not covered by any specific fund.

Special systems for public-sector workers and self-employed persons.

Insured person: 9.19% of gross earnings.

The minimum daily earnings for contribution calculation purposes for workers in industry are €42.14 or the minimum daily wage, whichever is greater.

The minimum daily wage varies by sector category of employment.

There are no maximum earnings for contribution calculation purposes for those insured before 1996. The maximum earnings for contribution calculation purposes for persons entering the system on or after January 1, 1996, are €92,147 a year.

Self-employed person: Not applicable.

Employer: 23.81% of gross payroll. (A lower contribution rate is paid by some employers, including employers in certain economically depressed areas.)

The minimum daily earnings for contribution calculation purposes for workers in industry are €43.79 or the minimum daily wage, whichever is greater.

The minimum daily wage varies by sector and category of employment.

There are no maximum earnings for contribution calculation purposes for those insured before 1996. The maximum earnings for contribution calculation purposes for persons entering the system after January 1, 1996, are €92,147 a year.

Government: The total cost of income-tested allowances and any overall deficit.

Old-age pension (NDC): Age 65 (men) or age 60 (women) with at least 5 years of paid contributions. The insured must be eligible for a pension of at least 120% of the social allowance (€5,349.89 a year); waived if the insured is aged 65 or older or has 40 years of contributions.

Pensioners may continue in gainful activity.

Old-age pension (mixed social insurance and NDC): Age 65 (men) or age 60 (women) with at least 20 years of paid or credited contributions.

Pensioners may continue in gainful activity.

Old-age pension (social insurance): Age 65 (men) or age 60 (women) with at least 20 years of paid or credited contributions (15 years of contributions if made prior to December 1992); age 60 (men) or 55 (women) if assessed with a degree of disability of at least 80%.

Pensioners may continue in gainful activity.

Seniority pension: Age 59 (gradually rising to 61 by 2013), first insured before 1996, and the sum of the insured's age and contributions years must be at least 95 (gradually rising to 97 by 2013).

Persons with at least 40 years of contributions may continue in gainful activity.

Social allowance (means-tested): Paid if not eligible for the old-age pension, aged 65 or older, and an Italian citizen, a citizen of a member state of the European Union and residing in Italy, or a non-European Union citizen who resides in Italy with a special residence permit. Annual income, including that of a partner, must not exceed a government-set level (€5,342.89 if unmarried; €10,699.78 for a couple).

Disability pension: Paid for a total and permanent incapacity for any work with at least 5 years of contributions, including 3 in the last 5 years before the claim. The insured may not receive any other income, including earnings from self-employment and unemployment benefits.

Constant-attendance supplement: Paid if the insured requires the constant attendance of others to perform daily functions.

Disability allowance (means-tested): Paid for the loss of 66.7% of working capacity with at least 5 years of contributions, including 3 in the last 5 years before the claim. The allowance is paid for up to 3 years; may be extended for additional 3-year periods. After the allowance has been extended for a second consecutive time, the award becomes permanent.

If the insured satisfies the qualifying conditions for the old-age pension at retirement age, the disability allowance is replaced by the old-age pension.

Means test: The person must have an annual income of no more than four or five times the legal minimum pension.

The legal minimum pension is €5,998.20.

Survivor pension (means-tested): The deceased received an old-age, seniority, or disability pension and had at least 15 years of contributions or 5 years of contributions, including 3 in the last 5 years before death.

Means test: For a survivor pension first awarded after September 1, 1995, the pension is reduced by 25%, 40%, or 50% if the eligible survivor has annual income exceeding three, four, or five times the legal minimum wage, respectively. The means test is not applicable to children younger than age 18, students, or persons with disabilities.

The legal minimum wage is €5,998.20.

Eligible survivors are the spouse; a separated spouse entitled to alimony; children younger than age 18 (age 21 if a full-time student, age 26 if a university student, no limit if disabled at the time of the insured's death); nephews, nieces, or grandchildren who were dependent on the deceased; or, in the absence of the above, parents older than age 65 who were dependent on the deceased and who are not entitled to a pension.

The survivor pension ceases on remarriage and a lump sum is paid.

Death grant: Paid if the qualifying conditions for the survivor pension are not met. The deceased must have paid at least 1 year of contributions in the previous 5 years.

Old-age pension (NDC): The pension is based on notional contributions, adjusted annually according to the average rate of increase in gross domestic product during the last 5 years, and an actuarial coefficient that varies according to the insured's age (from 4.720% at age 57 to 6.136% at age 65).

The maximum annual earnings for benefit calculation purposes are €88,669 a year.

Old-age pension (social insurance): The pension varies according to the level of annual earnings (from 2% for annual earnings not greater than €42,364 to 0.9% for annual earnings greater than €70,327.24 for contributions accrued prior to December 1992 and for annual earnings greater than €80,491.60 for contributions accrued from January 1993 onwards) and is based on average annual earnings during the last 5 years multiplied by the number of contributions up to 40 years.

Annual earnings for benefit calculation purposes are adjusted according to changes in the cost-of-living index for years before 1993 and changes in the retail price index for years after 1992.

Old-age pension (mixed social insurance and NDC): A social insurance pension is provided for the contribution period before January 1, 1996, and an NDC pension if provided for the period since then.

Reference earnings for the social insurance part of the pension are the average insured annual earnings during the last 5 to 10 years. Annual earnings for benefit calculation purposes are adjusted according to changes in the cost-of-living index for years before 1993 and changes in the retail price index for years after 1992.

Insured persons with at least 15 years of contributions, including 5 years made before 1995, can opt for an NDC pension only.

The minimum monthly old-age pension is €458.20 for a single pensioner with annual income less than €5,992.61 or for a couple with annual income of less than €17,977.83 (if the person or household's annual income is higher than a certain amount, a reduced benefit or no benefit is paid). The minimum monthly old-age pension is €580 for a single pensioner aged 70 or older with annual income less than €7,540.55 or for a couple aged 70 or older with annual income of less than €12,682.67.

Benefits are payable abroad.

Schedule of payments: Benefits are paid monthly, with a 13th payment in December.

Benefit adjustment: Benefits are adjusted annually according to the average change in the cost-of-living index.

Seniority pension: The pension is based on a decreasing rate of return (from 2% for annual earnings not greater than €42,364 to 0.9% for annual earnings greater than €70,327.24 for contributions accrued prior to December 1992 and for annual earnings greater than €80,491.60 for contributions accrued from January 1993 onwards) of reference earnings multiplied by the number of years of contributions up to 40 years.

Reference earnings are average insured annual earnings in the last 5 years. Annual earnings for benefit calculation purposes are adjusted according to changes in the cost-of-living index for years before 1993 and changes in the retail price index for years after 1992.

Benefits are payable abroad.

Schedule of payments: Benefits are paid monthly, with a 13th payment in December.

Benefit adjustment: Benefits are adjusted annually according to the average change in the cost-of-living index.

Social allowance: The annual benefit is €5,349.89 for an unmarried pensioner with annual income less than €5,517.85 or for a couple with an annual income less than €11,510.46; may be increased to €580 a month if aged 70 or older, unmarried, and with annual income less than €7,540.55 (for one person) or €12,682.67 (for a couple).

Benefits are not payable abroad.

Schedule of payments: Benefits are paid monthly, with a 13th payment in December.

Benefit adjustment: Benefits are adjusted annually according to the average change in the cost-of-living index.

Disability pension (NDC): The pension is based on notional contributions, adjusted annually according to the average rate of increase in gross domestic product during the last 5 years, and an actuarial coefficient that varies according to the insured's age (from 4.720% at age 57 to 6.136% at age 65). If the disability began before age 57, the coefficient corresponding to age 57 is used.

An increment based on the number of years between the insured's age on the date the disability began and the normal retirement age is added to the pension.

The minimum monthly pension is €460.97 for an unmarried pensioner aged 60 or older with income less than €5,517.85 (€11,510.46 for a couple).

Constant-attendance supplement: €480.47 a month is paid.

If the insured is also entitled to a work injury disability pension, only the part of the disability pension that exceeds the work injury disability pension is paid.

Benefits are payable abroad.

Schedule of payments: Benefits are paid monthly, with a 13th payment in December.

Benefit adjustment: Benefits are adjusted annually according to the average change in the cost-of-living index.

Disability pension (social insurance): The pension varies according to the level of annual earnings (from 2% for annual earnings not greater than €42,364 to 0.9% for annual earnings greater than €70,327.24 for contributions accrued prior to December 1992 and for annual earnings greater than €80,491.60 for contributions accrued from January 1993 onwards) and is based on average annual earnings during the last 5 years multiplied by the number of contributions up to 40 years.

An increment based on the number of years between the insured's age on the date the disability began and the normal retirement age is added to the pension.

The minimum monthly pension is €460.97 for an unmarried pensioner aged 60 or older with income less than €5,517.85 (€11,510.46 for a couple).

Constant-attendance supplement: €480.47 a month is paid.

If the insured is also entitled to a work injury disability pension, only the part of the disability pension that exceeds the work injury disability pension is paid.

Benefits are payable abroad.

Schedule of payments: Benefits are paid monthly, with a 13th payment in December.

Benefit adjustment: Benefits are adjusted annually according to the average change in the cost-of-living index.

Disability pension (mixed social insurance and NDC): The pension for the contribution period before January 1, 1996, is calculated as per the social insurance old-age pension, above. The pension for the contribution period beginning January 1, 1996, is calculated as per the NDC old-age pension, above.

Reference earnings for the social insurance part of the pension are the average insured annual earnings during the last 5 to 10 years. Annual earnings for benefit calculation purposes are adjusted according to changes in the cost-of-living index for years before 1993 and changes in the retail price index for years after 1992.

Insured persons with at least 15 years of contributions, including 5 years made before 1995, can opt for a pension calculated as per the NDC old-age pension.

Disability allowance (means-tested): Calculated in the same way as the disability pension.

No increment is paid for the anticipated number of years between the insured's age on the date the disability began and the normal retirement age.

The minimum monthly old-age pension is €460.97.

Means test: The disability allowance is reduced by 25% if the insured's annual income exceeds four times the legal minimum pension or by 50% if the insured's annual income exceeds five times the legal minimum pension.

The legal minimum pension is €5,998.20.

If the insured is also entitled to a work injury disability pension, only the part of the disability allowance that exceeds the work injury disability pension is paid.

Benefits are payable abroad.

Schedule of payments: Benefits are paid monthly, with a 13th payment in December.

Benefit adjustment: Benefits are adjusted annually according to the average change in the cost-of-living index.

Survivor pension (means-tested): 60% of the pension the deceased received or would have been entitled to receive is paid to a spouse without children, 80% for a spouse with one child, 100% for a spouse with two or more children, 70% for one full orphan, 80% for two full orphans, or 100% for three or more full orphans.

The survivor pension ceases on remarriage and a lump sum of 2 years of pension is paid.

Other eligible survivors (in the absence of the above): Each parent, brother, or sister receives 15% of the pension paid to the deceased.

All survivor benefits combined must not exceed 100% of the deceased's pension.

Death grant: A lump sum of the monthly social allowance (€411.53) multiplied by the total amount of paid contributions is paid.

If first insured on or after January 1, 1996, a lump sum of the disability allowance multiplied by the number of years of contributions may be paid under certain conditions.

Ministry of Labor, Health and Social Policy (http://www.lavoro.gov.it; www.ministerosalute.it) and Ministry of Economy and Finance (http://www.tesoro.it) provide general supervision.

Ministry of Labor, Health and Social Policy
Via Veneto, 56
00187 Roma,
Italy

Tel.: +(39-06) 48 16 11

National Social Insurance Institute (http://www.inps.it) administers the mandatory national program through its branch offices and administers a number of special programs for certain categories of insured workers.

National Social Insurance Institute (INPS)
Via Ciro il Grande, 21
00144 Roma,
Italy

Tel.: +(39-06) 59 05 34 69
Fax: +(39-06) 59 05 49 31