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Pensions: What's changing with the cut in revaluations? UIL's outlook

Pensions: What's changing with the cut in revaluations? UIL's outlook

(Adnkronos) - With a crackdown on pension revaluations, the gross cut to medium-high pensions could range between approximately €95 and €1240 per year. This is the calculation made by the UIL pensioners' union, based on recent rumors about the new indexation mechanism...

(Adnkronos) – With a crackdown on pension revaluations, the gross cut to medium-high pensions could range between approximately €95 and €1240 per year. This is the calculation made by the UIL pensioners' union, based on recent rumors about the new indexation mechanism, which would provide for 100% inflation recognition only for pensions up to four times the INPS minimum.

The percentage would then drop to 90% for those up to five times the minimum, to 60% for assignments greater than five and up to six times the minimum, to 50% between six and eight times, to 40% between eight and ten times and to 35% more than ten times the minimum. 

 

Starting from a hypothetical 3% inflation rate, the transition from a bracketed to a total amount revaluation system, with these percentages, "would lead to lower increases for pensions above four times the minimum," i.e., those equal to the minimum INPS payment of 611,85 euros.

Obviously, "these figures are hypothetical. To be certain, we need to wait for the Ministry of Economy and Finance's decree to adjust pensions based on ISTAT data," the union emphasizes, reiterating that the simulation uses hypothetical inflation and the percentages from the draft figure reported, without considering any safeguard clauses. However, the Uilp general secretary, however, disagrees: "We continue to consider a further cut in the revaluation to be absurd," says Carmelo Barbagallo.

"We can't continue to cash in on pensioners: they're people, not ATMs. If the cut is confirmed," he warns, "we won't stand still. There are 16 million pensioners, and they want to continue to do good for the country and their families." 

The substantial difference, as illustrated in the Uilp analysis, concerns the calculation method: "With the bracket system, the reduced percentages apply only to pension portions that exceed certain thresholds," while with the overall system, "the percentage set for the bracket applies to the entire pension." 

For pensions of €1.500 and €2.000 gross per month, there would be no difference because both systems would fully reflect inflation, with increases of €45 and €60 per month, respectively. The situation is different for higher amounts, however. A €2.500 pension would receive an increase of €67,50 instead of €74,84 per month, while for a €3.000 pension, the increase would drop from €88,34 to €81 per month. In both cases, the loss would be €7,34 per month, equivalent to €95,42 per year over 13 months. 

 

The penalty would increase for a €3.500 pension: the increase would go from €99,86 to €63 per month, with a loss of €36,86 per month, equal to €479,18 per year. For a €4.000 pension, the increase would drop from €111,11 to €60 per month, resulting in a €51,11 reduction per month, or €664,43 per year. A €5.000 pension would receive a €60 increase instead of €133,61 per month, with a loss of €73,61 per month, equal to €956,93 per year. For a €6.000 pension, the increase would decrease from €156,11 to €72 per month, a reduction of €84,11 per month, equivalent to €1.093,43 per year. Finally, for a €6.200 pension, the increase would decrease from €160,61 to €65,10 per month: the loss would be €95,51 per month, equivalent to €1.241,63 per year. 

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