Redemption of the degree: costs, benefits and who can benefit from them

If you were thinking of redeeming your graduation years for retirement – and therefore paying the related contributions – this is a good time thanks to the redemption of the degree facilitated which allows for the periods that are placed in the contributory system savings of up to 70%. The redemption of the degree course – explains INPS on the site – «The tool that allows you to transform university years into contributory years, and therefore integrate the contributory position for the purposes of the law and the calculation of all pension benefits. The contribution to be paid changes in relation to the rules governing the payment of the pension with the wage or contributory system (ie from 1 January 1996), taking into account the timing of the periods subject to redemption “.

The facilitated redemption is useful for those who want to increase the useful periods to access the pension, in the same way it approaches the ordinary early retirement and, for workers who have the requisites by 2021, also the Quota 100e Quota 102. However, since it is a redemption in the contribution calculation method, the increase on the pension is minimal: it is calculated just over 20 euros gross per month more for each year that is redeemed.

The conditions

The necessary condition is to have obtained the degree qualification. But be careful, you cannot redeem periods that are not included in the course nor those already covered by compulsory contributions. The faculty can also be exercised by unemployed persons who, at the time of the application, are never registered in any compulsory form of social security and who have not started working in Italy or abroad.

The simulator

INPS has launched the campaign by providing a free service that allows you to simulate the degree redemption, providing information on the various types of degree redemptions available (facilitated, unemployed, ordinary) for the various user segments and on possible tax advantages resulting from the payment of the charge. It also presents an indicative simulation of the cost of the redemption, its installment payments, the starting date of the pension (with and without redemption) and the estimated pension benefit in case you want to redeem your degree.

The subsidized redemption is also valid for workers who graduated before 1996 and opted for the contributory method. Inps itself has announced that the redemption of degree in a subsidized formula is accessible to all workers who have studied after 1995. In both cases, the period of study, which is always the legal duration of the degree course (or even of several courses achieved), will have a charge on the worker equal to a lump sum which for 2021 is equivalent to 5,265 euros, completely deductible.

What can be redeemed

They can be redeemed university degrees (courses lasting no less than two years and no more than three); bachelor’s degrees (courses lasting no less than four years and no more than six); specialization diplomas, which are obtained after graduation and at the end of a course lasting no less than two years; doctorates of research; three-year degree, master’s degree and master’s degree; diplomas issued by the Institutes of Higher Artistic and Musical Education (AFAM).

How to apply and how to pay

The graduate citizen must submit the redemption request to INPS exclusively by electronic means and payment will be made using the pagoPA Payment Notice. It’s possible print out the PagoPA payment notices across the Payment Portal, by logging in with your authentication credentials.

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