Old Age Pension Schemes for Liberal Professionals
Regimi pensionistici ‘privatizzati’ dei liberi professionisti
Coverage
Mandatory insurance
- For certified liberal professions registered under the professional order, mainly including self-employed medical doctors, dentists, veterinarians, pharmacists, architects, notaries, lawyers, tax consultants, financial auditors, psychotherapists, engineers.
Voluntary insurance
- Possible under certain conditions, in particular during the first years of professional activity.
Financing
General finances
- PAYG-financed from insurance contributions and own resources (capital revenues).
- No government guarantees or state subsidies.
Contribution rates
- Fixed share of income declared for income tax purposes/company income subject to VAT; paid by insured person.
- Contribution rates differ between schemes, according to regulations.
- Statutes may allow for additional voluntary contribution payments.
Administration
- Pension funds (foundations or associations according to the Civil Code) with some normative autonomy, consisting of:
- A) schemes under Decree Law 509/1994 including labour consultants (ENPACL); veterinary doctors (ENPAV), pharmacists (ENPAF), lawyers (Cassa Forense), engineers and architects (INARCASSA), surveyors and graduated surveyors (CIPAG), accountants (CNPR), certified accountants (CNPADC), notaries (CNN), medical doctors (ENPAM);
- B) schemes under Decree Law103/1996 including biologists (ENPAB), separate scheme for agricultural technicians and consultants (ENPAIA), multi-categorical scheme for agronomists, forestry experts, actuaries, chemists, geologists (EPAP), graduated and non-graduated industrial consultants (EPPI), psychologists (ENPAP), nurses (ENPAPI).
- Supervised by the Pension Funds Supervisory Board COVIP (Commissione di vigilanza sui fondi pensione) as to the control of investments of financial resources.
- Supervised by the Ministry of Economy and the Ministry for Labour and Social Policies, as in the case of occupational pension schemes.
Qualifying Conditions
Qualifying conditions
- Retirement age increases to 67 without minimum contribution period (some exceptions: minimum contribution period of 60 months); qualifying conditions vary according to regulations of each independent pension scheme.
Early retirement
- Available, depending on regulations.
Deferred retirement
- Retirement can be deferred, up to a maximum age (up to 70-75) and with additional pension rights, according to regulations.
Combining employment & retirement
- Termination of employment is usually not a precondition for claiming pension benefits (exception: long-term service pensions cannot be combined with specific professional activity previously exercised).
Benefits
Pension benefits
- Earnings-related monthly pensions.
- Some schemes provide for an income-tested minimum pension; maximum pension amount based on pensionable income ceilings according to statutes.
Factors for benefit calculation
- Various calculation methods across different 509/1994 schemes; some have adopted the contribution-based method with calculation criteria that are sometimes different from the old age pension scheme for private sector employees (FPLD).
- The funds established under Law 103/1996 apply the contribution-based NDC method: pensions are calculated by multiplying the individual amount of contributions paid by members by an age-related coefficient at the time of retirement, which also considers life expectancy.
- Indexation: according to regulations.
Taxation and social security contributions
- Pension benefits subject to income tax.
- Solidarity contributions imposed on higher pensions.
- No social security contributions.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Mandatory insurance
- For certified liberal professions registered under the professional order, mainly including self-employed medical doctors, dentists, veterinarians, pharmacists, architects, notaries, lawyers, tax consultants, financial auditors, psychotherapists, engineers.
Voluntary insurance
- Possible under certain conditions, in particular during the first years of professional activity.
General finances
- PAYG-financed from insurance contributions and own resources (capital revenues).
- No government guarantees or state subsidies.
Contribution rates
- Fixed share of income declared for income tax purposes/company income subject to VAT; paid by insured person.
- Contribution rates differ between schemes, according to regulations.
- Statutes may allow for additional voluntary contribution payments.
- Pension funds (foundations or associations according to the Civil Code) with some normative autonomy, consisting of:
- A) schemes under Decree Law 509/1994 including labour consultants (ENPACL); veterinary doctors (ENPAV), pharmacists (ENPAF), lawyers (Cassa Forense), engineers and architects (INARCASSA), surveyors and graduated surveyors (CIPAG), accountants (CNPR), certified accountants (CNPADC), notaries (CNN), medical doctors (ENPAM);
- B) schemes under Decree Law103/1996 including biologists (ENPAB), separate scheme for agricultural technicians and consultants (ENPAIA), multi-categorical scheme for agronomists, forestry experts, actuaries, chemists, geologists (EPAP), graduated and non-graduated industrial consultants (EPPI), psychologists (ENPAP), nurses (ENPAPI).
- Supervised by the Pension Funds Supervisory Board COVIP (Commissione di vigilanza sui fondi pensione) as to the control of investments of financial resources.
- Supervised by the Ministry of Economy and the Ministry for Labour and Social Policies, as in the case of occupational pension schemes.
Qualifying conditions
- Retirement age increases to 67 without minimum contribution period (some exceptions: minimum contribution period of 60 months); qualifying conditions vary according to regulations of each independent pension scheme.
Early retirement
- Available, depending on regulations.
Deferred retirement
- Retirement can be deferred, up to a maximum age (up to 70-75) and with additional pension rights, according to regulations.
Combining employment & retirement
- Termination of employment is usually not a precondition for claiming pension benefits (exception: long-term service pensions cannot be combined with specific professional activity previously exercised).
Pension benefits
- Earnings-related monthly pensions.
- Some schemes provide for an income-tested minimum pension; maximum pension amount based on pensionable income ceilings according to statutes.
Factors for benefit calculation
- Various calculation methods across different 509/1994 schemes; some have adopted the contribution-based method with calculation criteria that are sometimes different from the old age pension scheme for private sector employees (FPLD).
- The funds established under Law 103/1996 apply the contribution-based NDC method: pensions are calculated by multiplying the individual amount of contributions paid by members by an age-related coefficient at the time of retirement, which also considers life expectancy.
- Indexation: according to regulations.
Taxation and social security contributions
- Pension benefits subject to income tax.
- Solidarity contributions imposed on higher pensions.
- No social security contributions.
Legal Basis: Legislative Decrees No. 509/1994; No. 103/1996; Law No. 335/1995; Law No. 111/2011; Law No. 133/2011; Law No. 214/2011; statutes and regulations of different schemes; Income Tax Act (DPR) No. 917/1986 (Testo unico delle imposte sui redditi, TUIR).