HOW IT WORKS
The Early Temporary Supplementary Annuity (R.I.T.A)
What is the Early Temporary Supplementary Annuity (R.I.T.A)
The Early Temporary Supplementary Annuity (R.I.T.A) is one of the benefits that the pension fund can provide. It was designed to allow workers to access a supplementary annuity before the ordinary retirement age. Introduced in 2017 to offer greater flexibility to workers approaching retirement, R.I.T.A represents an important option for those who wish to supplement their income while waiting for their public pension.
What is the purpose of the Early Temporary Supplementary Annuity (R.I.T.A)
The main objective of R.I.T.A is to provide temporary financial support to workers who leave the labor market early, whether voluntarily or not. This tool allows the use of capital accumulated in the supplementary pension fund, offering a quarterly annuity until reaching retirement age.
Requirements to access R.I.T.A
You can request R.I.T.A (for contribution) when:
- you have ceased working (dismissal, resignation, early retirement);
- you are no more than 5 years away from the old-age pension age (from 62 years onwards);
- you have at least 20 years of contributions paid into your mandatory pension scheme;
- you have at least 5 years of participation in supplementary pension schemes.
N.B. To be able to receive R.I.T.A, the member must be eligible for at least 2 installments. Therefore, R.I.T.A cannot be requested when less than 6 months remain until the qualifying age for old-age pension.
Or (for unemployment exceeding 24 months) when all these conditions are met:
- you have ceased working (resignation, dismissal);
- you have been unemployed for more than 24 months;
- you are no more than 10 years away from the old-age pension age (from 57 years onwards);
- you have at least 5 years of participation in supplementary pension schemes.
Calculation method, disbursement, and duration of R.I.T.A
R.I.T.A is paid quarterly until reaching the ordinary retirement age. The annuity amount is calculated based on the capital accumulated in the supplementary pension fund and can be adjusted according to the applicant’s needs.
In particular, the member can request R.I.T.A disbursement for only a portion of their accumulated capital in the pension fund. The quarterly payment amount will depend on:
- The amount allocated to R.I.T.A.
- The number of quarters that can be paid during the period between R.I.T.A activation and reaching retirement age.
- The periodically disbursed amounts will be disinvested each time and will assume the unit value corresponding to the month of disinvestment of the quarterly installment; the amount payable as R.I.T.A will be equal to the countervalue of the number of units disinvested and liquidated at the time of disbursement.
- The installments to be paid, recalculated each time, will therefore take into account the increase or decrease in the value of the remaining amount committed to R.I.T.A: consequently, the amounts paid as R.I.T.A will not be equal over time.
Try our simulator to estimate the quarterly R.I.T.A payment
R.I.T.A Calculator
Warnings
- Simulation: the displayed amounts are based on current assumptions and parameters, and do not represent a guarantee or commitment by the Pension Fund. The actual R.I.T.A amount may vary based on the actual time of request acceptance.
- Unit value variations: the simulated amount is subject to variations, linked to possible fluctuations in the unit value of the chosen investment option. Therefore, the final installment value may differ from the indicated amount.
- Gross and net amount: the simulator shows a gross amount. The actual net amount will depend on the applicable taxation, which varies based on the member’s years of enrollment.
This simulator should be used exclusively as a general guidance tool.
Tax benefits applied to R.I.T.A
The taxable portion of RITA is subject to withholding tax at a rate of 15%, reduced by 0.30 percentage points for each year exceeding the fifteenth year of participation in supplementary pension schemes, with a maximum reduction of 6 percentage points.
Advantages and disadvantages
Advantages of R.I.T.A:
- Flexibility in leaving the workforce;
- Temporary financial support;
- Use of capital accumulated in pension funds;
- Taxation of the entire pension amount between 15% and 9% (depending on accumulated enrollment years).
Disadvantages of R.I.T.A:
- Reduction of available capital at ordinary retirement (as R.I.T.A directly affects the capital accumulated in the pension fund);
- Possible impact on future public pension (due to early exit from the workforce).
How to request R.I.T.A
To request R.I.T.A, simply access your Online Reserved Area.
In the top menu bar, search for and click on R.I.T.A and follow the guided request procedure.
N.B. Submitting the R.I.T.A application through the Reserved Area significantly reduces processing times as Fondapi immediately receives the forms and supporting documentation for the request.
Alternatively, you can proceed with manual completion of the R.I.T.A activation request form by downloading it here.
What documents are required for requesting the Early Temporary Supplementary Annuity (R.I.T.A)
The member who intends to request R.I.T.A (for contribution) must upload:
- PDF copy of identification document;
- IBAN code and proof of ownership (screenshots from online banking showing the IBAN code and the applicant’s name will be sufficient);
- (only for early retirement) Pension certification from INPS;
The member who intends to request R.I.T.A (for unemployment exceeding 24 months) must upload:
- PDF copy of identification document;
- IBAN code and proof of ownership (screenshots from online banking showing the IBAN code and the applicant’s name will be sufficient);
- Certification from the Employment Center indicating the date of registration on unemployment lists and attestation of continued status.
R.I.T.A includes a one-time cost of €10.00 charged on the first installment and a cost of €6.00 for each quarterly installment paid.
Furthermore, requesting R.I.T.A does not exempt from paying the expenses during the accumulation phase (see cost sheet in Information Note) until the position is fully liquidated.
In case of death of the member who was receiving R.I.T.A payments from the pension fund, the R.I.T.A must be revoked through a specific form and the remaining capital to be paid will follow the rules for death benefit redemption.
If the member has an active salary-backed loan, 1/5 of the annuity will be paid to the Financial Company.
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