The redemption of the degree is an opportunity offered by the INPS to transform university years into contributory years for retirement. This tool makes it possible to integrate the contribution position for the purpose of law and the calculation of all pension benefits. The cost is deductible from the 730 model at 19% or fully deductible, as appropriate
.
Table of Contents:
What is the degree redemption
The redemption of the degree allows workers to convert the years of their university studies into contribution years valid for pension purposes.
In practice, the period of time dedicated to university studies is considered as if it had been spent working, thus increasing the worker’s contribution seniority. This operation involves the payment of a contribution.
Advantages of redeeming a degree
Redeeming a degree has two main advantages:
- The contribution period and the amount of the pension are increasing.
- The contribution is tax deductible at 19% if supported by a dependent family member, while it is fully deductible if supported for yourself.
Degree redemption requirements
To access the redemption of the degree, it is necessary to:
- Have obtained a bachelor’s degree or equivalent qualifications.
- The periods for which the redemption is requested must not be covered by a mandatory or figurative contribution or by redemption in any social security scheme.
- Be the holder of at least one mandatory contribution in the pension system in which the redemption is requested.
Even the unemployed, i.e. those who are not enrolled in social security management and who have not started working in Italy or abroad, can access the benefit.
What can be redeemed
The periods that correspond to the duration of legal university study courses, at the end of which one or more degrees have been obtained, are redeemable. For periods of university study completed abroad, it is necessary to ratify the convention on the recognition of qualifications related to higher education in the European region
.
Redeemable periods
Redeemable study periods include:
- University diplomas (courses lasting no less than two years and no longer than three).
- Bachelor’s degrees (courses lasting no less than four years and no longer than six).
- Specialization diplomas (postgraduate, courses lasting no less than two years).
- Research doctorates governed by specific legal provisions.
- Three-year degrees, specialized or master’s degrees.
- AFAM diplomas awarded by Higher Artistic and Musical Training Institutes.
Redemption Limits
It is not possible to redeem:
- The off-course years.
- Periods already covered by mandatory or figurative contributions.
- Years of university studies not completed with the achievement of the degree.
Calculating the cost of redemption
The cost of redeeming a degree varies depending on the contribution or compensation system.
Contribution system
For periods starting from January 1, 1996, the cost is calculated by applying the current contribution rate to the salary of the last 12 months. For example, if the gross salary for the last 12 months is 32,170 euros and the rate is 33%, for 4 years of redemption the cost will be about 42,464
euros.
Remuneration system
For periods prior to 1996, the contribution varies according to age, period to be redeemed, gender, total contribution seniority and salaries in recent years.
Simulation of redemption
The INPS offers an online simulator to calculate the cost of redeeming a degree. It is accessible without SPID, CIE, or CNS credentials. By entering the required data, it is possible to obtain an estimate of the cost
.
How to apply
The redemption request must be submitted online through the dedicated INPS service. Presentation methods include:
- Telematic services accessible directly by the citizen through SPID, CIE or CNS.
- Multichannel Contact Center.
- Patronages and other intermediaries of the INPS.
Ransom payment
The contribution can be paid in a single installment or in monthly installments without interest for a maximum of 120 installments. Payment can be made through several channels, including direct debit to the current account
.
News 2024
Among the novelties of 2024, Circular No. 14 of 19 January 2024 introduced rules for the transfer of the contribution amount paid for the redemption of the degree. This allows you to transfer contributions from a separate FPLD account to your enrollment pension management
.
Degree redemption assistance
For more information, visit the dedicated INPS web portal, where news about the service and an FAQ section are available.
Redeeming a degree is an advantageous opportunity for those who want to increase their retirement age and improve the amount of their pension. With the right information and tools, such as the INPS online simulator, it is possible to calculate costs and evaluate the convenience of
this choice.
