Changing the method used to revalue pensions under the budget plan could reduce annual income by between €144.17 and €1,314.17, according to new estimates from Uil Pensionati (Uilp). The calculations assume 3% inflation and an Italian National Social Security Institute (INPS) minimum pension of €611.85.
Uilp said that replacing the current bracket-based system with one based on the total pension amount would result in progressively larger losses for pensions exceeding four times the minimum payment.
Under the estimates, a gross monthly pension of €2,500 would lose €144.17 per year compared with retaining the bracket-based system. The annual reduction would be €153.92 for a €3,000 pension and €574.73 for a €3,500 pension.
The estimated loss would rise to €711.23 per year for a €4,000 pension, €1,015.43 for a €5,000 pension and €1,163.63 for a €6,000 pension. For a gross monthly pension of €6,200, the reduction would reach €1,314.17 annually.
Uilp said the figures showed a more severe impact than suggested by earlier reports. Its secretary general, Carmelo Barbagallo, described the cuts as unacceptable and called for taxes on pensioners to be reduced instead of limiting pension revaluation. He added that pensioners should continue to be supported and noted that they number 16 million.
Sources: ANSA Economia.