HOW IT WORKS
One-time Voluntary Contribution to the Pension Fund
What is voluntary contribution to the pension fund
Members of Fondapi and, in general, of the supplementary pension system, can increase their capital in the fund in various ways. In addition to severance pay and employer contributions, they can make one-time voluntary payments through a bank transfer, which the fund will accept, credit to their position, and invest in the investment option chosen by the member.
The one-time voluntary contribution to the pension fund is the opportunity to pay additional amounts to Fondapi for your personal savings, beyond severance pay, monthly individual contributions, and any additional employer contribution.
Why make additional contributions: the benefits
Increase your pension capital
Use your liquid savings for pension investment. A simple and highly efficient alternative investment form for small savers!
Benefit from tax deduction
Additional contributions allow you to reduce your taxable income and maximize tax savings. Every Italian citizen can deduct up to €5,164.57 each year!
Tax deductibility of additional contributions: an in-depth look
All individual contributions, except severance pay, are deductible from the worker’s income.
The maximum deductible amount each year is €5,164.57 and allows you to lower the income on which you pay taxes (IRPEF).
Please note: it’s not that these contributions will never be taxed.
They will simply be taxed at the time of benefit payment with a substitute tax rate of maximum 23% (for redemptions and advances) and between 15% and 9% (for pension benefits, health-related advances, and certain types of redemption)
Example
If in 2023 you contributed €6,164.57, you must inform the Fund that €1,000 are non-deductible contributions (6,164.57 – 5,164.57 = 1,000).
This way, on the €5,164, you will only pay the substitute tax when requesting a benefit from the Fund (as seen in the previous section).
On the remaining €1,000, however, you will pay the normal progressive IRPEF tax, but – and this is why you must report the excess – no tax will be applied to them at the time of benefit payment.
Therefore, those who have contributed less than €5,164.57 in the year can use voluntary contributions to take advantage of the full tax benefit.
It’s important to remember that if you exceed this deductibility threshold, you must report the excess amount to the Fund. This is to avoid double taxation when Fondapi pays out the member’s position.
If you have other supplementary pension plans, any contributions to them count towards reaching the maximum deductible limit.
Any excess contributions can be declared directly from your personal Reserved Area. Click here to see how!
How to make a one-time voluntary contribution
1. Access your RESERVED AREA
2. Click on "CONTRIBUTION" in the top bar
3. Click on "MAKE A VOLUNTARY CONTRIBUTION"
- Select the payment date
- Enter the desired amount
4. Make the bank transfer to Fondapi
- All necessary information (including IBAN) is shown on the receipt generated in step 4
- PAY ATTENTION TO THE PAYMENT DESCRIPTION:
Enter (ONE-TIME CONTRIBUTION – Tax Code – Surname – Name)- Including your tax code is EXTREMELY IMPORTANT as it ensures the correct matching of the payment to your position
- REMEMBER THAT you can cancel the payment ONLY before making the bank transfer.
Timing
When Fondapi receives the bank transfer, the transaction is automatically processed.
In the following days, the paid amount will be visible in your personal area, initially shown as “uninvested contribution – awaiting unit value”.
To proceed with the investment, the Fund waits for the publication of the unit value for the month in which the payment was made by the financial managers. This value is generally made available in the second half of the following month.
For example, if the contribution was made in November 2024, the investment will be made once November’s unit value is published, expected by mid-December 2024. At that point, the contribution will be invested and will appear as “contribution”.
