Observatory

Access to early retirement “Quota 102”: INPS provides operating instructions

20 April 2022

In circular no. 38 dated 8 March 2022, INPS issued the operating instructions to access the early retirement pension under Art. 1, paragraph 87, of Law no. 234/2021 (“Budget Law 2022“), also known as “Quota 102.”

The law recognises the right to an early retirement pension upon reaching (i) a minimum age of 64 years and (ii) a minimum contribution period of 38 years by 31 December 2022. Previous rules governing the “Quota 100” pension, which apply to the early retirement pension introduced by the provision in question, are coordinated with the new pension requirements to be accrued by 2022.

Access to the new “Quota 102” early retirement pension

In the circular, shared with the Ministry of Labour and Social Policies, INPS illustrated the requirements to access the new form of early retirement, explaining the legislator process from the establishment of the “Quota 100” pension planned for the 2019/2021 three-year period, on an experimental basis. The latter type of early access to pensions was for those who “complete (completed ed.) a minimum age of 62 years and a minimum contribution period of 38 years in the period between 2019 and 2021, […] the right achieved by 31 December 2021 can (could ed.) also be exercised after that date.”

Article 1, paragraph 87, letter a), of the Budget Law 2022, in supplementing the rules on the “Quota 100” pension, added a sentence to paragraph 1 of Article 14, providing that “the age and contribution requirements referred to in the first sentence of this paragraph shall be 64 years of age and 38 years of contribution for persons who meet the requirements in 2022. The right acquired by 31 December 2022 may be exercised afterwards.”

INPS pointed out that members of the General Compulsory Insurance (“AGO”) and the exclusive and substitute forms of AGO, and the Separate Management Scheme, are entitled to an early retirement pension if they reach at least 64 years of age and a minimum contribution period of 38 years by 31 December 2022.

The right to an early retirement pension accrued by 31 December 2022 may be claimed after that date to obtain the pension, without prejudice to the time required for the opening of the “window.” The 64-year age requirement is not adjusted for increases in life expectancy.

Conditions and commencement of pension benefits

The amendments made by the 2022 Budget Law coordinate the previous rules governing the “Quota 100” pension with the new pension requirements to be accrued by 2022, and refer to:

  • the right to combine the full insurance periods paid or credited to two or more types of compulsory insurance managed by INPS;
  • the prohibition against combining pension benefits with income from employment or self-employment, except for occasional self-employment up to a gross annual limit of €5,000.

For pension benefit commencement purposes, the provisions of Article 14, paragraphs 5 and 6 of Decree Law no. 4/2019 apply. They provide different rules on the achievement of the right to the pension starting date depending on the public or private employer and the Social Security Management under which the pension is paid.

The pension for workers employed by employers other than public administrations and self-employed workers will start three months after the date on which the requirements are met. The pension starting date cannot be earlier than 1 May 2022, if the pension is paid by a Fund other than the exclusive AGO, or 2 April 2022, if the AGO Fund pays the entire pension.

Fulfilling the requirements following contribution redemption

INPS stated that when accruing pension rights, the periods subject to contribution redemption must be considered in their original time position and their legal effects must be treated as if they were acquired at the time of the person’s original insurance position.

Any contribution paid or credited for the insured person can be assessed to meet the contribution requirement of at least 38 years. Workers who meet the requirements, for the “Quota 100” pension, between 2019 and 2021 or by 2022, for the “Quota 102” pension, may receive their pension at any time, even after the above dates, if the conditions are met.

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