The recent INPS Circular No. 98 of 25 November 2024 has introduced an important development for those who attended the Higher Technical and Technological Institutes (ITS Academies). Under Law No. 99/2022, it is now possible to redeem years of study at these institutions for pension purposes, but only for courses commenced after the legislation came into force.
Is it possible to redeem years of study at ITS Academies for pension purposes?
Yes, INPS Circular No. 98 of 25 November 2024 extended the possibility of pension redemption to years of study at the Higher Technical and Technological Institutes (ITS Academies), established under Law No. 99/2022.
Which ITS courses are valid for pension redemption?
Valid ITS pathways are those lasting four or six semesters, provided they were completed at accredited institutions. Redemption is only available for courses commenced after Law No. 99/2022 entered into force.
What documents are required to apply for redemption?
To obtain the redemption, it is necessary to request a declaration confirming that the diploma was obtained in accordance with the requirements set out by law.
Is the redemption of years of study at ITS Academies automatic?
No, redemption is not automatic. It must be requested by the individual through the procedures established by INPS, subject to verification of the applicable requirements.
How does the redemption of ITS or university study years affect the pension?
The effect of redemption on the pension varies according to the age at which the contributory career began and the presence of periods without contributions.
Four scenarios can be outlined:
Possible delay in accessing retirement.
Early retirement by more than five years.
Early retirement by two or three years.
No change to age-related pension requirements.
Is it always worthwhile to redeem years of study?
Not always. Redemption may be advantageous only if it allows a significant advancement of the retirement date or an increase in the pension amount. In some cases, the cost of redemption may not justify the benefits obtained.
What alternatives exist to redeeming years of study?
A valid alternative is joining a pension fund, which can be particularly advantageous when redemption does not allow for early retirement. An independent financial adviser can help evaluate the best options available.
Why is it important to rely on an independent financial adviser?
An independent financial adviser can provide a personalised analysis of the effects of redemption, taking into account the costs, benefits, and alternatives best suited to the individual’s circumstances.
Conclusion
The redemption of years of study at ITS Academies represents a new opportunity for workers, but its value depends on numerous factors. Before proceeding, it is advisable to assess one’s situation carefully with the assistance of an expert, in order to make the best decision from a pension and financial planning perspective.