Pensions, 2020 degree redemption: requirements, costs and tax discounts of the facilitated procedure

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The decree law 4/2019 (converted from the law 26/2019) introduced the possibility of a facilitated redemption of the degree, making it less expensive to recover the university years to “approach” the pension and increase the allowance. This possibility applies to all years of study, even those prior to 1996, as recently specified by INPS.

But there are some precise stakes to be respected.
Let’s start with the requirements. As for the ordinary redemption, it is possible to “enhance” the following qualifications: the university diploma (2-3 years duration), the three-year, four-year or single-cycle degree, the post-graduate specialization diploma, as well as the research doctorate (if contributions to the separate INPS management were paid).
You can also request the redemption of partial periods, shorter than the legal duration of your course of study. On the other hand, years that are not in progress cannot be redeemed.

Inps management mandatory
In order to access the subsidized redemption, the worker must be registered with at least one contribution paid to one of the INPS management: the facilitated redemption is not accessible to those who are registered only with a professional fund.
But not only: the management in which the ransom is requested must already exist in the period of the legal course of studies. And again: the redemption cannot cover periods already subject to contributions, (this is the case of the student worker).
The most important requirement of the light redemption is that the study period must be placed in periods to be assessed with the contribution system, ie from 1 January 1996. However, with circular no. 6 of 22 January 2020, INPS specified that a person with less than 18 years of contributions at the end of 1995, has the possibility to exercise the option for the contribution method (article 1, paragraph 23, law 335/1995) and apply the method introduced by the Dini Reform to his entire career.

This option makes the light redemption at this point “cleared” also for the years of study prior to 1996. However, it should be borne in mind that in doing so the amount of the future pension will be less generous since it will have to be recalculated with the contribution method (more unfavorable ).

The cost and tax discounts
Each ransom year costs 5,260 euros (if the request is made in 2020). The sum paid out is fully deductible for tax purposes.