Wednesday, June 15, 2016

Pensions: Early exit without charge. Studying a loan of 20 years – The Republic

MILAN – No penalties for early retirement, but a loan with a twenty-year amortization plan, insurance coverage and a tax deduction on the of the capital advanced for some weaker and worthy of protection. And ‘the proposal put on the plate by the government in meeting with the unions during which the Secretary to the Presidency of the Council of Ministers, Thomas Nannicini and Labour Minister, Giuliano Poletti, reaffirmed the intention of the executive not to touch the Fornero reform. banks and insurance. Nannicini, in particular, explained that the “involvement of financial institutions, banks and insurance” would be done not by an ideological issue but would be born exclusively on fulfillment of budgetary constraints: flexibility in exiting the labor market, in fact, would cost tens of billions of euro a year, too much for the state coffers. The meeting was attended by the general secretaries of Cgil, Cisl and Uil, Susanna Camusso, Annamaria Furlan and Carmelo Barbagallo that entering the ministry said: “The country is expecting something good, let’s not disappoint him.” The government reaffirmed its intention not to change the Fornero law and the will to allow the output flexibility of workers with financial instruments.

Negotiations. The executive’s proposal is now being considered by the unions ahead of the next meeting on 23 June with representatives of the workers who expect to understand in detail, how the government will formalize the proposal. In accordance emerged from the meeting, the pension loan for those who leave work before the age of retirement will have to be returned with installments up to 20 years with interest. In addition, there would be a different cost for those who become unemployed before reaching the requirements for access to retirement and for those who decide to voluntarily leave the job.

The loan. on trade unions, Nannicini wanted to explain that it is not a penalty but only a “repayment installment”, as in the case of a mortgage to purchase a house or a loan to finance the purchase of good. The hypothesis of the Government – refer unions – stipulates that a bank advances the financial amount of net pension for the years that are missing on the old-age pension, a sum which then would be returned in time. I’m not a true pension penalty on the check, but a deduction to pay the 20-year installment loan amortization with insurance coverage and a tax deduction on the part of the advanced capital “for some weaker and worthy of protection”. The pension payment will be managed by INPS which – in the case of Palazzo Chigi – it will be the burden of creating the relationship with the financial institutions that will deliver the net early retirement to workers who certify that the early retirement request.

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The penalty risk. as mentioned, the unions are waiting to see how the government will enter into the details of the proposal. A recent study of the UIL, in fact, speculate that the early exit could cost up to one month per year: a calculation based on the mechanism that will probably be adopted and that is, access to a pension with an advance of up to 3 years compared to the requirement Birth and death required, by “paying” (through a loan to a bank, guaranteed by the state) with an installment applied on board. Assuming an index of 1% pension benefits for each year and the interest rate of 3.5%, a worker who accessed it with a year in advance and with a gross treatment of 1,000 euro would lose so 6 , 9% of the pension, or the equivalent of a monthly net amount less per year (898 EUR). The burden, of course, would grow with increasing the years ahead. Why the unions expect to see from a person who would be the interest.

Topics:
pension
unions
government
Ministry of Labour
cisl
uIL
cgil
Starring:
Thomas Nannicini
Giuliano Poletti
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