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Pensions, cuts to future allowances explained and all the figures

The 2024 budget law cuts future pensions for some categories of public employees, with what risks being one of the most contested provisions of the measure.
We are referring to article 34 of the draft of the 2024 budget law, against which the unions representing the professional categories that could suffer a cut in future pensions have already taken action if there are no second thoughts on the part of the government.
There are those who are already talking about unconstitutionality and acquired rights, even threatening to appeal to the Constitutional Court if the law were to be confirmed.
700 thousand public employees will be affected, for whom there will be the application of a less convenient rate of return than that applied up to now.
An innovation that could lead to significant cuts to the pensions of public employees but which in reality will allow the government to recover up to 8 billion euros in total.
The new calculation rates for the salary portion of the pension The 2024 Budget Law intervenes on Table A attached to Law no.
965 of 26 July 1965, which defines the rates for the payment of pension quotas which fall within the remuneration regime (therefore for periods of work prior to 31 December 1995).
Table which is modified with the following, introducing less convenient calculation rates.
Pensions, which public employees are at risk of being cut In detail, those affected – and penalized – by the change are those registered with: Local authority employee pension fund (CPDEL) Healthcare workers' pension fund (CPS) Pension fund to teachers of nursery schools and certified primary schools (CPI) pension fund to bailiffs, assistant bailiffs and assistants (CPUG) Employees of local authorities, health workers, teachers of nursery schools and certified primary schools, bailiffs: these are public employees who risk having their pensions cut, compared to around 700 thousand people affected.
But not everyone: the new table, in fact, would be applied only to those who have less than 15 years of contributions accredited in the remuneration system, while for those who exceed this threshold the rates as foreseen by the 1965 table remain valid.
How much is lost The difference between the two tables is that the one applied in 1965 provided for a rate – equal to 0.23865 – even for those with zero months of salary, and then reached 0.375 with 15 years of contributions.
With the one modified by the 2024 Budget Law, a coefficient of 0 will instead be applied for those with zero months of salary, and will then rise to 0.375 anyway.
In fact, those who are penalized are mostly those who have only a few years on their salary, so much so that according to estimates conducted by Cosmed, the Confederation of Doctors and Healthcare Managers, the starting point will be an annual cut of 7,159 euros for the first year ( zero years of contributions), 6,587 euros for the second (one year of contributions), 6,028 euros for the third (two years of contributions) and so on until reaching just 382 euros in the fourteenth year.
Amounts that apply to medical staff, obviously not to other sectors where pensionable salaries are different (and usually lower).
However, these calculations help us to get an idea of how much is lost due to the application of different rates for the salary calculation.
And it should also be considered that the same table was used for the redemption of the University years: moving to the new values, Cosmed estimates, the redemption cost could rise up to 66 thousand euros (compared to the current 19 thousand).

Author: Hermes A.I.

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