Social Security (Minimum Standards) Convention, 1952 (No. 102) - Italy (RATIFICATION: 1956)

CMNT_TITLE

Part V (Old-age benefit). Article 26(2) of the Convention. Increase of pensionable age beyond 65 years. The Committee notes from the Government’s 34th (2019) annual report on the application of the European Code of Social Security (Code), which contains a similar provision, that the normal retirement age has been gradually increased from age 65 in 2011 to age 67 in 2019. The Committee recalls that in accordance with Article 26(2), the prescribed age shall be not more than 65 years or such higher age as may be fixed by the competent authority with due regard to the working ability of elderly persons in the country concerned. The Committee therefore requests the Government to provide information on the working ability of elderly persons, including, for example, data on the healthy life expectancy (HLE), disability free life expectancy (DFLE), and employment rate among elderly persons in Italy.

Article 28(a), in conjunction with Article 65. Calculation of old-age pension. The Committee notes the calculations provided by the Government in its 2019 annual report on the application of the Code, which contains the same provision, showing that the old-age pension of a standard beneficiary attains a replacement rate of 56.4 per cent. The Committee notes however that the Government does not specify how this standard old-age pension has been calculated, i.e. whether it was based on 30 years of contributions or more and whether the standard beneficiary is assumed to retire at the normal retirement age or later. Moreover, the Committee notes that family allowances for two children have been added to the pension, which is not permitted for this purpose, as the standard beneficiary in case of old age is defined as a man with wife of pensionable age (without children), as set out in the Schedule to Part XI of the Convention. The Committee requests the Government to provide more detailed calculations of the old-age pension which a standard beneficiary would be entitled to and to calculate the replacement rate in accordance with Titles I–III, V of Article 65 of the report form for the Convention, i.e. based on a period of contributions of not more than 30 years for a person drawing his/her old-age pension at the normal retirement age.

Article 29(2)(a). Reduced benefit after 15 years of insurance. The Committee notes the indication provided by the Government in its 2019 report on the application of the Code, which contains the same provision, that, according to Law No. 214/2011, for workers insured after 1 January 1996 under the notional defined-contribution system, the minimum qualifying period for an old-age pension is 20 years (1,040 weeks) of contribution, provided that the amount of pension must not be less than 1.5 times the minimum monthly amount of social allowance (€686.99 in 2019). The Committee further notes from the information provided by the Government that this pension is payable at age 67 (in 2019 and 2020) and that workers insured after 1 January 1996 with less than 20 years of contributions are entitled to a contributory pension (regardless of the amount) only at the age of 71 years (from 1 January 2019 to 31 December 2020), if they have accrued at least five years of effectively paid contributions. The Committee observes that these provisions effectively deprive workers insured after 1 January 1996 of the right to a reduced old-age pension irrespective of their amount, as required under Article 29(2)(a), upon reaching the pensionable age and completion of a qualifying period of 15 years of contribution. Based on the above, the Committee requests the Government to ensure that all persons protected have the right to a reduced social insurance pension after 15 years of contribution, in line with Article 29(2)(a).

Part X (Survivors’ benefit). Articles 62(a) and 63(5). Conditions for entitlement. The Committee takes due note of the information provided by the Government in reply to its previous request concerning the conditions for entitlement to survivors’ benefit.

CMNT_TITLE

The Committee notes the information supplied by the Government in reply to its previous comments.

Part X (Survivors’ benefit), Articles 62(a) and 63(5) of the Convention. The 26th annual report submitted by the Government on the application of the European Code of Social Security states that, from 1 January 2012, the percentage rate of pensions for the surviving spouse will be reduced by 10 per cent for each year of marriage under ten years. This reduction will apply only in the case where the breadwinner was over 70 years of age at the time of marriage and where the age difference between the spouses was more than 20 years. This provision however will not apply in the case where minors, students or disabled people are present. The Committee observes that this provision may substantially reduce the level of pension due to a childless widow who has reached a sufficiently advanced age of between 50 and 60 years when she might be reasonably presumed to be incapable of self-support. The Committee would like the Government to explain the motives and indicate whether the phenomenon of such marriages has become so widespread in the country that it required adoption of a special legislation.

CMNT_TITLE

Part VII (Family benefit), Article 44 of the Convention. The Committee notes that the Government’s report does not indicate the total value of benefits paid to families, calculated in accordance with Article 44 of the Convention. According to the twenty-first report on the European Code of Social Security, the total value of family benefits paid in 2005 for children under 18 or without any age limit in cases of total and permanent disability (estimated at 2.830 billion euros (€)) represented 1.77 per cent of the reference wage of an ordinary adult male labourer (€15,991.36) multiplied by the total number of children of all residents (9,979,005). According to the twenty-second report and the supplementary information supplied in March 2007, the total value of family benefits paid in 2006 for children under 18 or without any age limit in cases of total and permanent disability increased to €3.4 billion, i.e. 4.76 per cent of the reference wage (€16,209.76) multiplied by the total number of children of all residents (10,041,741). The amount of €3.4 billion was calculated on the basis of an overall amount of €4,727,073,921 representing the total amount of benefits paid in 2006 to families with or without children, the estimated figure resulting from the family benefit reform provided for in the 2007 Finance Act. The Committee recalls in this respect that, under Article 44(b) read in conjunction with Article 1, paragraph 1(e), of the Convention, the total value of family benefits must be calculated for children either under school-leaving age or under 15 years of age, as may be prescribed. It would therefore be grateful if the Government would include in the calculation of the total value of family benefits only the benefits paid for the maintenance of all children under 18 years of age and not those paid for older children and to families without children. The Committee notes that the Government does not have statistics which are broken down in this way and that the latter will necessarily be estimated. It asks the Government to explain how this estimate will be made in view of the changes made under the 2007 Finance Act to the family benefit system. Please also send copies of any other statistical or sociological studies showing how the Italian family benefit system offsets expenditure on child maintenance for the various categories of protected persons.

Part VIII (Maternity benefit), Article 49, paragraphs 2 and 3. The twenty‑second report on the application of the European Code of Social Security indicates that the Italian national health service (SSN) is mostly funded by tax revenue and also possibly – but to a much lesser extent and subject to independent decisions by the autonomous regions and provinces – through the sharing of costs by the insured person (the “ticket” system). The “ticket” certainly cannot be regarded as obstructing access to health services because of the low amounts and exemptions from paying for the “ticket” for certain categories of persons. The aim of the “ticket” is not so much financial as to make the person concerned more aware of the economic cost of providing the benefit. The report also states that the purchase of a “ticket” can be required for certain health benefits in cases of pregnancy and confinement, such as prenatal counselling and screening, targeted hematochemical tests for each trimester of pregnancy, hospitalization with medical and paramedical assistance in gynaecology and obstetrics, and postnatal care monitored by hospital neonatologists. As regards medical care in cases of pregnancy, confinement and the postnatal period, the Committee asks the Government to indicate which autonomous regions and provinces have introduced the “ticket” system, for what amount and for which type of care. It draws the Government’s attention to the fact that section 49(2) of the Convention advocates free medical care when it is provided on medical opinion and does not authorize any sharing of costs by insured persons.

Administration and organization of social security. Among the legislative changes made by Act No. 296 of 27 December 2006 (2007 Finance Act), the twenty‑second report of the Government highlights the measures for keeping a balance in the social security system between income from contributions and expenditure on welfare benefits and for stepping up measures against evasion and fraud, namely:

–      Increasing income and boosting activity for the recovery of contributions through inspections and agreements with banks and occupational associations.

–      Stepping up the fight against unauthorized work and evasion regarding contributions through the widespread use by inspectors of new computerized procedures for detecting and monitoring high-risk situations via the preparation of information from composite databases. The National Social Security Institute (INPS) signed an agreement in 2007 with the Ministry of the Interior with a view to simplifying procedures for the issue and renewal of residence permits for immigrants via the exchange of information on the employment situation of foreign citizens. The cross-checking of data will also make it possible to identify links between immigration and unauthorized work, facilitating action aimed at ensuring greater compliance with regulations on social insurance and contributions.

–      Introduction of the principle of regulated contributions for access to benefits as stipulated by the provisions of social security and labour legislation. This major innovation allows the INPS to have an effective means of reorganizing the administrative process for the recovery of contributions.

–      With a view to fighting evasion in contributions and undue receipt of benefits, even for agricultural enterprises, the possibility of denouncing an employer under criminal law for failure to pay deductions related to social security and assistance has been introduced.

The Committee would be grateful if the Government would include more detailed information in its next report on the practical application of these various measures, including on the number of inspections conducted, violations reported and the nature of penalties imposed. The Committee would like to reiterate in this context that although the stepping up of the fight against evasion and fraud in social security appears a necessary and logical measure for maintaining the financial balance of the system, any measure which results in the withdrawal or suspension of benefits guaranteed by the Convention for protected persons must be exercised within the limits prescribed by section 69 and in compliance with the principles of proportionality and equal treatment for non-nationals.

CMNT_TITLE

In its previous observation, the Committee has invited the Government to consider accepting the obligations of the Convention in respect of Part VI (Employment injury benefit), which contains provisions similar to Part VI of the European Code of Social Security ratified by Italy in 1977. In reply to this proposition, the Government states that the competent authorities were consulted and expressed themselves in favour. Consequently, the Ministry of Labour and Social Policy will commence proceedings for ratifying Part VI of the Convention as soon as possible. The Committee notes this statement with interest and would like to be kept informed of the progress made in this respect.

The Committee further notes that, while Italy has accepted the obligations of the Convention only for Parts V, VII and VIII, the report also contains detailed statistics for the calculation of the level of the benefits with respect to other non-accepted Parts of the Convention (Parts III, IV, IX and X), which show that the replacement level prescribed by the Convention is attained. The information supplied by the Government in its 22nd annual report on the application of the European Code of Social Security confirms this conclusion. In this respect the Committee notes that the Group of Consultants for the application of Article 76 of the European Code of Social Security has pointed out in its latest report that Italy is in a position to accept Parts II, III and IV of the Code, which contain provisions similar to the corresponding Parts of the Convention. Highlighting the importance of enhanced coordination between the obligations assumed by the Contracting Parties under European and ILO social security standards, the Committee would therefore ask the Government to consider the possibility of accepting the obligations of the Convention in respect of these Parts as well.

CMNT_TITLE

With reference to its previous comments, the Committee notes the information supplied by the Government in its report, as well as that provided with respect to the application of the European Code of Social Security. It notes that, while Italy has accepted the obligations of the Convention only for Parts V, VII and VIII, the report contains detailed statistics for the calculation of the level of the benefits with respect to Parts III, IV, V, VIII, IX and X. These statistics show that the replacement level prescribed by the Convention is attained by all the benefits concerned. The same is true also for the level of the benefits covered by Parts VI and VII of the Convention, calculated according to the statistics supplied by the Government in its 16th annual report on the application of the European Code of Social Security. Basing its calculations on Article 65 of the Convention, the Government states in its report on the Convention that the level of periodical payments to a standard beneficiary set out in the schedule to Part XI, is fully respected. The Committee notes this statement with interest. It would like to remind the Government of the possibility offered by Article 4 of the Convention of extending its acceptance of the obligations in respect of those Parts of the Convention which were not initially specified in its ratification. In particular, taking into account that Italy has long since accepted Part VI (Employment injury benefit) of the European Code of Social Security, the Committee suggests to the Government to consider also accepting Part VI (Employment injury benefit) of the Convention, which contains similar provisions.

CMNT_TITLE

With reference to its previous comments, the Committee notes the information supplied by the Government in its report, as well as that provided with respect to the application of the European Code of Social Security.

Part V (Old-age benefit) of the Convention. (a) The Committee notes with interest the very full information provided by the Government in reply to its previous conclusions in which it raised the question of the progressive increase of the minimum requirements respecting insurance and contributions, in relation to Article 29, paragraph 2(a), of the Convention, which provides that a reduced old-age benefit shall be secured at least to a person protected who has completed a qualifying period of 15 years of contribution or employment. The Committee observes that, as a result of the successive reforms of the pensions scheme, introduced by Decree No. 503 of 30 December 1992, and by the Act No. 335 of 8 August 1995 to establish a new old-age pension which provides for a number of transitional measures, the persons protected are covered by various implementing measures. The persons insured who were affiliated to the old-age pension scheme prior to 31 December 1995 and who have completed a qualifying period of more than 18 years by this date are still subject, even for the contributions acquired as of 1 January 1996, to the age and insurance conditions established in Legislative Decree No. 503 of 30 December 1992, while their pensions continue to be calculated according to the old system. As regards insured persons with less than 18 years of contributions as at 31 December 1995, transitional arrangements have been made whereby two systems for calculating pensions will co-exist -- pensions will be calculated according to the old system for the periods completed prior to 31 December 1995 and, according to the new system, for periods completed after this date -- given that the required age and insurance conditions will continue to be governed by Legislative Decree No. 503 of 1992. Similarly, pensions are paid entirely according to the old system for workers who, as of 31 December 1995, can prove that they have completed a qualifying period of less than 18 years and have not paid contributions after this date. As of 2001, insured persons who can provide evidence of at least 15 years of contributions including five paid under the new pension system after 1 January 1996 will be able to choose between payment according to the old or the new system, with the age and contribution conditions henceforth being governed by Act No. 335 of 8 August 1995.

The Committee recalls that, according to Legislative Decree No. 503 of 30 December 1992, table B, the necessary qualifying period for entitlement to an old-age pension has, since 1 January 1993, been 16 years, and that this period is increased by one year every two years so as to reach 20 years by 2001, with a particular exception being made for workers who have completed a qualifying period of 15 years prior to 31 December 1992. The Committee therefore notes that persons insured who, according to the transitional arrangements provided for in Act No. 335 of 8 August 1995, continue to be subject to the age and insurance conditions established in Legislative Decree No. 503 of 1992 but cannot provide evidence of the required qualifying period, shall not be entitled to an old-age pension, even at a reduced level, contrary to the provisions of article 29, paragraph 2(a). Consequently, the Committee requests the Government to indicate, in its next report, the measures taken or envisaged to ensure the full application of this provision of the Convention for this category of insured persons.

Furthermore, the Committee also notes that once the new pension system has actually entered into force, workers will be entitled to a pension from the age of 57, provided that they have paid contributions for a period of five years and that the amount of the pension is 1.2 times greater than the amount of the "social allowance". In this regard, the Committee recalls that, according to the provisions of Article 29, paragraph 2(a), of the Convention, a reduced old-age pension must be paid in all cases to a person protected who has completed a qualifying period of 15 years of contribution or employment, irrespective of the amount of the pension. The Committee hopes that when the time comes full consideration will be given to this provision of the Convention.

(b) The Committee notes the information and the statistics provided by the Government relating to the amount of the old-age benefit for a standard beneficiary, which shows that the level prescribed by the Convention continues to be reached. The Committee recalls, however, that Act No. 335 of 8 August 1995 establishes a pension system defined by contributions rather than one which continues to be defined by wages and accumulation rates, as was the case previously (section 1(6) of the Act). Given that in the new system the level of the benefit will depend on the amount of the individual contributions paid by an insured person and on their revaluation, the Committee would like the Government to take account of this matter with a view to taking any useful measures which might prove to be necessary in order to ensure that old-age benefits at the level required by the Convention (40 per cent of the reference wage) are guaranteed in all cases for a standard beneficiary who has completed a qualifying period of 30 years of contribution or employment, in accordance with Articles 28 and 29, paragraph 1(a), of the Convention; such measures may include the establishment of a minimum pension calculated in accordance with the provisions of Article 66 of this instrument. The Committee wishes to be informed of any new developments in this regard.

(c) As regards the review of old-age pensions (Article 65, paragraph 10, and Article 66, paragraph 8), the Committee notes the statistics provided by the Government in its report on the change in the consumer price index and in the minimum wage for employees. In order to be fully able to assess the manner in which effect is given to these provisions of the Convention, the Committee requests the Government to provide, in its next report, all the statistics required in the report form under Article 65 (Title VI), and in particular, as concerns the variations in old-age pensions, data relating to the annual average pension by beneficiary and by standard beneficiary, as it has done for Part VI (Employment injury benefit).

Part VII (Family benefit), Article 44 of the Convention. With reference to its previous conclusions, the Committee notes with interest the statistics on the level of family benefit supplied by the Government which show that the total value of family benefit has increased in relation to the data provided previously from 1.22 per cent to 1.41 per cent of the reference wage multiplied by the number of children under the age of 18. Given, however, that the total value of family benefit has still not reached the percentage prescribed in article 44 of the Convention (1.5 per cent), the Committee requests the Government to indicate in its next report the measures taken or envisaged to increase the total amount of the benefit in question, paid in accordance with article 42 of the Convention, so as to reach the level prescribed by this instrument.

CMNT_TITLE

The Committee notes that the Government refers in its report to the information it supplied in the framework of the application of the European Social Security Code.

1. Part V (Old-age benefit) of the Convention. The Committee recalls that in assessing the extent of the application of the Code by Italy it has raised the question of the progressive increase of the minimum requirements respecting insurance and contributions, which are to reach 20 years on 1 January 2001 (see section 2(1) of Decree No. 503 of 30 December 1992 and Schedule B). In view of the fact that, in accordance with Article 29, paragraph 2(a) of the Code and of Convention No. 102, a reduced old-age benefit shall be secured at least to a protected person who has completed, prior to the contingency, in accordance with the prescribed rules, a qualifying period of 15 years of contribution or employment, the Committee had requested the Government to indicate the measures which have been taken or are envisaged to give full effect to these provisions.

In its twelfth report on the Code, the Government confirms that, subject to certain exceptions, workers who have not completed the qualifying period of 15 years before the date of 31 December 1992, will not be entitled to any benefit, even at a reduced level, if they cannot provide justifications for the required contribution period (17 years as from 1 January 1995 until 31 December 1996). However, the Government refers to the new Act No. 335 of 8 August 1995 respecting the reform of the compulsory and supplementary pension system, which introduces a new old-age pension to replace the previous benefits. This pension is provided either without conditions of age after 40 years of contribution, or at an age of between 57 and 65 years, on condition that the employment relationship is terminated, that five years' contributions have actually been paid and that the level of the above pension is 1.2 times greater than the level of the "social allowance". According to the Government, these new rules will come fully into force as from the year 2008. Until that date, it is planned to apply a transitional scheme. In view of these modifications, the Government considers that the above-mentioned problem raised by the Committee could be considered to be overcome.

The Committee notes this information. It notes that the new Act No. 335 of 8 August 1995 establishes a pension system determined on the basis of contributions and no longer, as was the case previously, of benefits (section 1(6) of the Act). It also notes that, in accordance with the new legislation, for a worker to be entitled to a reduced pension after five years' contributions, the pension must be 1.2 times greater than the level of the "social allowance". The Committee would like the Government to provide detailed information in its next report on the effect of Act No. 335 of 1995 on the application of each of the Articles of Part V of the Convention, including statistics as requested by the report form under Article 76, paragraph 1(b)(i) and (ii) (in conjunction with Article 65 or 66) as they relate to old-age benefit. In this respect, the Committee hopes that the Government will be able to indicate the measures which have been taken or are envisaged to ensure that old-age benefits of the level required by the Convention (40 per cent of the reference wage) are secured in all cases to a standard beneficiary who has completed the qualifying period envisaged in Article 29, paragraph 1(a) of the above instrument (30 years of contribution or employment). In addition, the Committee would also like the Government to provide information on the transitional measures adopted under Act No. 335 of 8 August 1995, particularly as regards persons who were covered by Decree No. 503 of 30 December 1992. Finally, the Government is requested to supply the text of any regulations issued under the new legislation.

The Committee reserves the possibility of examining Act No. 335 of 8 August 1995 in greater detail when it has received the information requested above and when it has available a translation in English or French.

2. Part VII (Family benefit), Article 44 of the Convention. With reference to its previous comments, the Committee notes the new statistics on the level of family benefit supplied by the Government in its 12th report on the Code. These statistics, which provide more up-to-date information on the total number of children of residents, show that the total value of family benefit increased in relation to the statistics provided by the Government in its eleventh report on the Code, reaching 1.22 per cent of the reference wage multiplied by the total number of children under 18 years of age. However, the Committee notes that the total value of family benefit still does not attain the percentage prescribed by Article 44 of the Convention, which is 1.5 per cent. In these conditions, the Committee hopes that the Government will not fail to provide information in its next report on the measures which have been taken or are envisaged to increase the total amount of family benefit allocated in accordance with Article 42 of the Convention so that it reaches the percentage prescribed by Article 44 of this instrument.

3. Finally, the Committee hopes that the Government's next report will contain a reply to the comments made by the "Sindicato Nazionale dei capi di Polizia in Congedi".

[The Government is asked to report in detail in 1997.]

CMNT_TITLE

1. Part VII (Family benefit), Article 44, of the Convention. The Committee notes, from the statistics supplied by the Government in its report, that the total value of family benefit represents 1.2 per cent of the reference wage multiplied by the total number of children of all residents whereas, according to Article 44 of the Convention, this percentage should be 1.5 per cent. The Committee however notes that, according to the statistical information supplied by the Government in its report on Convention No. 102, the total value of family cash benefits for children aged under 18 years was 3,400 thousand million lira whereas, according to the information supplied by the Government in its seventh report on the application of the European Code of Social Security, this amount for 1991 was 4,300 thousand million lira (or 900 thousand million more).

If the total amount of family benefit paid in respect of children aged under 18 years, as stated by the Government in its report on Convention No. 102, reflects the actual situation, the Committee requests the Government to supply information on the measures which have been taken or are envisaged to increase the total amount of family benefit provided under Article 42 of the Convention so as to reach the percentage prescribed by Article 44 of that instrument.

2. Part XIV (Miscellaneous provisions), Article 76, paragraph (b) (ii). The Committee notes that, according to the statistical information supplied for old-age benefit (in relation with Article 65, Title III of the report from) and under Article 44, the amount of the reference wage in the two cases is 22,329,048 lira per year. In this respect, the Committee wishes to draw the Government's attention to the fact that: (a) with regard to the calculation of old-age benefit, the wage which has to be taken into consideration is the wage of a skilled manual male employee chosen according to Article 65, paragraph 6 or 7, of the Convention, whereas: (b) for the calculation of the value of family benefit provided for under Article 44 of the Convention, it is necessary to refer to the wage of an ordinary adult male labourer selected in accordance with Article 66, paragraph 4 or 5, of the Convention.

CMNT_TITLE

The Committee notes the statistical information on the adjustment of old-age benefits supplied by the Government with its fifth report on the application of the European Code of Social Security (Article 28 in conjunction with Article 65, paragraph 10, of the Convention).

Furthermore, the Committee requests the Government to supply additional information on the following points.

1. Part VII (Family Benefit), Article 44. The Committee once again requests the Government to supply the following statistical data required by the report form on this Convention under Article 44:

(a)total number of children of all persons protected (or total number of children of all residents);

(b)wage of an ordinary adult male labourer (and not of a skilled male manual worker) determined in accordance with Article 66, paragraph 4, of the Convention;

(c)total value of family allowances (in cash and in kind) paid during the period covered by the report in respect of dependent children only.

2. Part VIII (Maternity Benefit), Article 49. In its fifth report on the application of the European Code of Social Security, the Government refers to beneficiaries sharing in the cost of hospitalisation in the event of maternity, which is not authorised by this provision of the Convention. The Committee, however, believes that this cost-sharing has been abolished since 1 July 1989 following the adoption of Legislative Decree No. 111 of 25 March 1989 (section 7(2) of the Legislative Decree). It would be grateful if the Government would confirm that this is indeed the case in its next report.