(June 11, 2015) On May 21, 2015, new legislation concerning pensions and social security benefits entered into effect in Italy. (Decree-Law No. 65 of May 21, 2015, Urgent Measures Concerning Pensions, Social Safety Networks, and TFR [Tratamento di fine rapporto — lump sum payable upon cessation of pensionable employment] Safeguards [D.L. No. 65], GAZETTA UFFICIALE [G. U.] No. 116 (May 21, 2015), NORMATTIVA (in Italian); Tratamento di fine rapporto, Istituto Nazionale Previdenza Sociale [National Social Security Institute or INPS] website (last visited June 4, 2015).)
D.L. No. 65 includes new measures on the automatic revaluing of pensions to ensure, on the one hand, a balance of public finances and, on the other, an adequate level of social security benefits for workers. (D.L. No. 65, art. 1(1).) The mechanisms established for the automatic revaluing of pension benefits are based on the minimum social security payments granted by the INPS. (Id. art. 1(1).) In particular, pensions are assigned variable percentage increases according to whether and by how much their total amount exceeds the minimum social security treatment granted by the INPS. (Id. art. 1(1).) Pensions of an amount higher than six times the minimum social security payment from the INPS are not granted any increments. (Id. art. 1(1).)
For the years 2014 and 2015, pensions will be automatically revalued according to the mechanism established in 1998 under a law on public finance measures. (Law No. 448 of Dec. 23, 1998, Public Finance Measures for Stabilization and Development, G. U. No. 302 (Dec. 29, 1998), NORMATTIVA (in Italian).) The increase for those years is equivalent to 20% of the existing pensions (id. art. 1(2)(a)), and will go up to 50% starting in 2016 (id. art. 1(2)(b)). The adjustment mechanisms established in the 1998 law are the basis for the revaluations in the percentages established in D.L. No. 65.
All the increases granted in accordance with this legislation are for individual beneficiaries and apply to pensions actually received, including the lifetime benefits that derive from elective office. (D.L. No. 65, art. 1(2).)
Additionally, the new legislation provides financing for the Social Fund for Occupation and Training in the amount of €1.02 billion (about US$1.019 billion). (Id. art. 2(1); Direzione Generale degli ammortizzatori sociali e degli incentivi all’occupazione, Ministry of Labor and Social Policies website (last visited June 5, 2015).)
D.L. No. 65 also appropriates funds for social security benefits to be granted to workers in the fishing sector in the amount of €5 million. (D.L. No. 65, art. 3(1).)