How it works
Benefits for Companies
It is a common belief that a pension fund is a contractual benefit tool that only concerns workers. However, the reality is different, especially when looking at the service offered by Fondapi to participating Companies; specifically:
- Fondapi communicates directly with Companies: in recent years, the best service quality is ensured by Fondapi’s internal staff who communicate with companies on one side, and by a qualified call center that resolves doubts and questions posed directly by enrolled and non-enrolled workers.
- Fondapi has a fully digitized data and document archive that allows immediate access to events and documents upon receipt of the case.
- Organizational advantage: Fondapi acts as a single qualified point of contact, ready to respond to all workers’ needs; and with Fondapi, you have access to over 15 years of experience in the sector.
- A tested flow submission system: the flow submission system is simple and fast. The company enters the system using access codes, fills out the electronic form, and submits it; on subsequent system logins, any anomalies or missing notifications are immediately highlighted, showing corrections to be made, if any.
- The Company optimizes prospective cash flow management: if it has fewer than 50 employees, the company doesn’t risk having to suddenly pay out workers’ benefits with unplanned disbursements.
- Fondapi is a contractual tool: in all Fund governing bodies (Board of Directors and Assembly) there are entrepreneurs representing companies who protect their interests.
- Administrative simplification: the company no longer needs to set aside severance pay, calculate annual revaluation, calculate and pay annual substitute tax on revaluation, pay advances and severance pay balances calculating due taxes, complete the unified certification (CU) in case of disbursement, and assist former employees when the agency recalculates severance pay after 4 years.
- The Company can use it as a loyalty and reward tool for workers: pension provision is an important value, and promoting it in the company brings workers closer and reassures entrepreneurs as it helps make retirement years less difficult. Furthermore, entrepreneurs who want to reward merit in the company can increase pension contributions for deserving workers; rewarding workers this way only requires the company to pay an additional 10% solidarity contribution: a much less expensive way of rewarding than a salary increase, which necessarily includes much more burdensome legal social security and welfare charges.
- Elimination of INPS Guarantee Fund contribution: with workers’ enrollment in the pension scheme, labor costs are reduced by approximately 0.20% (the effect is proportional to severance pay); with the reduction in labor costs, the estimated potential savings is about 0.28% per year.
- The company contribution is a cost but, as mentioned, you pay a 10% solidarity contribution to INPS, not the 23.81% social security contribution that would otherwise apply, and you don’t pay the 7.41% severance pay provision. As a cost, it reduces taxable profit, and the company’s 1% contribution has an effective cost of less than 0.80% for the company.
- Business income deductibility: the amount equal to 4% of the severance pay allocated each year to supplementary pension schemes and to the Fund for the payment of severance pay to private sector employees as per Article 2120 of the Civil Code is deductible from business income. For companies with fewer than 50 employees, the deductible amount is 6%.
- Reduction of improper charges: with the reduction in labor costs, the estimated potential savings is about 0.28% per year.
- 2017 Stability Law: extends the scope of productivity bonus benefits recognized to workers and paid to the Pension Fund up to a maximum of 4,000 euros.
Promotional message regarding supplementary pension forms – before joining, please read Part I ‘Key Information for Members’ and the Appendix ‘Sustainability Information’ of the Information Note.
