10.4.100 Italian Glossary

Introduction

This section contains definitions of terms applicable to the Agreement with Italy.

Article 10 Statement

Each year, the Italian pension authority (INPS) issues a special letter to its pensioners in Australia so that the exemption provisions of Article 10 can be applied to autonomous rates of pension in Australia. This is known as an Article 10 letter and is generally not received until March or April. It includes details of the Italian pension to be paid for the current calendar year and identifies all of the components. All amounts are in Italian lire. INPS pensions are increased every year on 1 January. Pensioners with INPS pensions cannot notify increases until they receive their Article 10 letter. The notification period for any increase will commence from when the letter is received. The date on which the pensioner received the letter can be estimated from the date on the letter and then allowing 2 weeks delivery from overseas (more time should be allowed if there are known delays such as postal strikes).

The key text and other terms used in Article 10 letters and their translations are:

Italian English translation
Certificazione degli importi pensionistici per l'anno xxxx rilasciata ai fini dell'applicazione del'art. 10 dell'accordo Italo-Austaliano in materia di sicurezza sociale. Statement of pension amounts for the year XXX for the purpose of application of art. 10 of the Social Security Agreement between Italy and Australia.
Pensionato Pensioner
Cognome Surname
Nome Given name/s
Cognome da nubile (per donne coniugate) Maiden name (for married women)
Luogo e data di nascita Place and date of birth
Numero pensione Pension number
Cat Type
Indirizzo Address
L'importo annuale corrisposto è di Euro The annual amount of Euro is
Detto importo comprende This amount includes
Importo derivante dalla contribuzione Amount of contributive portion
Importo dell'integrazione al minimo Annual amount of Italian supplement
Importo differenziale ex L. 335/95 Differential amount according to law 339/95
Importo degli assegni per il nucleo familiare a favore dei figli Amount of family allowance for children
Importo degli assegni per il nucleo familiare a favore del coniuge Amount of family allowance for a dependent spouse
Importo della maggiorazione per gli ex-combattenti Amount of veteran's supplement
Importo della maggiorazione sociale Amount of social welfare
Australian Carer Payment/Carer Payment

Under the old Agreement with Italy, carer payment was limited to legal husbands caring for severely handicapped wives. From 1 October 2000 carer payment is payable to the partner of a person who is in receipt of disability support pension for the severely disabled or an age pension.

Australian Disability Support Pension/Disability Support Pension

The Agreement covers DSP for the severely disabled. When the previous Agreement was negotiated DSP was known as invalid pension. Claims for DSP under the previous Agreement were not limited to the severely disabled and also covered the non-severely disabled.

Australian Double Orphan Pension

Under the Agreement with Italy, double orphan pension can be paid to someone in Italy who has the custody care and control of a young person whose last surviving parent died while the young person was an Australian resident. Article 12 was designed to override the requirement in the SSAct for a guardian to be also qualified for a family payment.

Bereavement Allowance

Under the Agreement with Italy, bereavement allowance can be paid only to widowed persons (male or female) who stop being partnered persons because of the death of their partner. It does not include someone who has a new partner.

Differential Amount

According to the law 335/95 this is the difference between the amount derived from contributions of an Italian pension paid under the Agreement and the minimum amount (importo minimale) guaranteed by Italian law (335/95). It is a supplement which Australia disregards as income (together with the importo dell'integrazione al minimo). However, the 'differential amount' is part of the direct deduction amount for Australian benefits paid under the Agreement. Italy pays the differential amount only to people who get Italian pensions under the Agreement.

ENPALS

ENPALS is a fund for employees in the entertainment industry.

INPDAI

INPDAI is a fund for managers in industry. INPDAI has been abolished from 1 January 2003. All contributions in this fund have been transferred to INPS, which is paying INPDAI pensions from 1 January 2003.

INPGI

INPGI is a fund for employees in the print media.

INPS

INPS is the National Social Security Institute. INPS is controlled by the Minister for Labour and Social Security. Its administrative network is similar to Centrelink. The structure is:

  • Central Office - located in Rome,
  • 20 Sedi Regionali - located in each regional capital city and the equivalent of Centrelink Area Offices, and
  • 95 Sedi Provinciali and 45 Sedi Zonali - the equivalent of Centrelink Customer Services Centres.
Italian Anticipated Pension

Italian anticipated pension can be paid to claimants who are within 5 years of age pension age and who have been retrenched or want to retire from companies considered to be in a state of financial crisis.

Italian Family Benefits for Dependants of Pensioners

This is an income-tested payment. The rate of family allowance may be supplemented if the family's annual income is less than the minimum amount specified under Italian law.

Note: 'Dependants' for family allowance are the same as dependants for survivor pension.

Italian Inability Pension

This is paid to those who are under age pension age at date of grant and totally and permanently unfit for work. Retirement is a prerequisite for grant and contribution requirements are the same as for invalidity allowance.

Italian Invalidity Allowance

This is available to people under age pension age at date of grant who are 67% permanently incapacitated for work. The allowance is granted initially for a period of 3 years but may, after application, be confirmed for further periods of 3 years. After 9 continuous years it becomes permanent. If the allowance is revoked, the period of receipt is recognised as a period of credited contributions. A minimum of 5 years contribution and a period of at least 3 years contribution in the 5 years immediately preceding the claim is required. Invalidity allowance is automatically transferred to age pension on attaining age pension age if the person has the contributions needed.

Italian Invalidity Attendance Allowance

This is available to recipients of inability pensions who are unable to care for themselves and require continuous care.

Italian Old Age Pension/Italian Age Pension

Minimum age requirements are 65 years (male employees) and 60 years (female employees). The self-employed, miners and blind people have different requirements - refer to 'CFP Information for Agreement Countries' in the International Help File on the LAN. A claimant requires 15 years contributions after age 16.

Italian Privileged Inability Pension

This is paid to those under age pension age at date of grant whose incapacity is work related (at least 67% permanently incapacitated for work) but who are ineligible for workers' compensation. A minimum of one week of contributions is required.

Italian Privileged Invalidity Allowance

This is paid to those under age pension age at date of grant whose incapacity is work related (totally and permanently unfit for work) but who are ineligible for workers' compensation. A minimum of one week of contributions is required.

Italian Seniority Pension

This is an age pension awarded to retired people who have either:

  • 35 years of contributions and are 57 years old, OR
  • after any age to retired people who have in the year 2002, 37 years of contributions. This increased to 40 years in 2008.
Italian Supplement

Means an extra amount or amounts paid to increase the amount of a benefit, derived from credited contributions, to the minimum amount or amounts specified for that benefit in the social security laws of Italy. Two payments, which are classed as 'Italian supplements', are the 'importo dell'integrazione al minimo' and the 'importo differenziale ex L.335/95'. Article 10 of the Agreement with Italy exempts the supplement from the Australian income test unless a pensioner is paid the direct deduction rate. Additional payments made by Italy, which are disregarded for the Australian income test, are Italian Integration, Social supplement or family benefits for dependents, social allowance and social pension.

Italian Survivor's Pension

This is paid to dependent survivors of a deceased pensioner or contributor who had sufficient contributions for age or inability pensions. Dependants include a widow or widower, children under 18 years, students under 21 years (university students under 26 years), handicapped children, parents provided they are aged 65 years or more and provided there is no dependent spouse or children and incapacitated brothers and sisters, if there are no other survivors. The pension rate cannot exceed 100% of the deceased's entitlement. Generally, a surviving spouse will receive 60% of the deceased's pension. If there are more dependents it is apportioned according to the number of dependants. The deceased must have contributed for at least 5 years.

Italian Unemployment Allowance

This is paid for 180 days per year at a rate fixed under Italian law. Family allowances are also payable during this period. To be eligible, an unemployed person must have been insured for a minimum of 2 years, have paid one year of contributions in the 2 years immediately preceding the claim and be registered at the unemployment office. Under the Agreement, the contribution conditions can be satisfied by residence and employment in Australia previous to the claim.

Italy

Is the Italian Republic. It comprises mainland Italy (the peninsula), Sicily, Sardinia, Elba and several other islands in the Mediterranean which are recognised as part of the Republic.

Parenting Payment (Single)

Under the Agreement parenting payment (single) is limited to legal (de jure) widows. Other categories of lone parents (single parents, males etc) are not covered under this Agreement.

Patronati

There is special assistance available to the Italian community through the Patronato agencies. Patronati are welfare organisations affiliated with the Italian trade unions. Each Patronato is recognised under Italian law and funded by INPS. Their role is to help people get social security entitlements by advocating the person's case with INPS. There are Patronati offices and branches in all Italian cities and most towns and work places. They are also present in overseas countries, including Australia, where large numbers of Italian migrants reside. In Australia, DSS recognises the important role of the Patronati and cooperates with them when a claimant or pensioner agrees to it. Patronati may help people in dealing with Centrelink. This is done only with the authorisation of the person. The Patronati do not charge pensioners for their services.

Payment Cycles for Italian Pensions

Prior to October 1998, Italy paid its INPS pension every 2 months. Since October 1998 all INPS pensions are paid monthly. If a grant is made in respect of a period before October 1998 it must be ascertained whether the individual pensioners are paid on even months - Cycle A - or odd months - Cycle B. The pension type is shown as an acronym on the cheque stub or in the 'Cat' column on the pension certificate or annual Article 10 statement. The exchange rate appropriate to that cycle should be applied to assess the amount of pension.

Pensions paid as part of Cycle A - February, April, June, August, October, December - were:

Pension type Category column shows
pensions paid under agreements /S
survivors and invalid pensions for employees s, IO
pensions for shopkeepers and self-employed craftsmen superannuation funds ART
survivors of farmers SW

Pensions paid as part of Cycle B - January, March, May, July, September, November - were:

Pension type Category column shows
age pension for employees VO
age pension for farm workers R
invalid pension for farmers IR
special pension funds EL, TT, DZ, GAS, VL

Note: Since October 1998 all pensions are calculated using the same exchange rate as indicated on the RDFXS screen in the data reference facility.

Period of Australian Working Life Residence/Australian Working Life Residence

The Agreement with Italy is the only Agreement that defines Australian residence during working life. Under the Act, Australian working life residence for a woman includes all periods from age 16 until age pension age (eventually to age 65). However, under the totalisation process in the Agreement with Italy, periods for women can be counted only until age 60 when totalising for Italian benefits.

Supplementary and Additional Amounts

If a pensioner is in Australia and gets a pension under the Agreement with Italy, that pension will attract any additional payment (such as PhA, RA, RAA, TAL) normally payable under the SSAct. Similarly, non-cash benefits (pensioner concessions) are also available to Agreement pensioners in Australia.

Widow

The term 'widow' is restricted to legally married women whose husbands have died and does not include a widow who has since formed a de facto relationship and continues to live in that relationship. The term does not include divorced women whose ex-husbands have died or widowers. Payments of parenting payment (single) and widow B pension can be made under the Agreement only to a widow as defined.

Widow B Pension

Under the Agreement, widow B pension is limited to legal (de jure) widows. Other categories of widow B pensioners (divorcees, dependent females etc) are not covered under this Agreement. A widow B pension must not be granted unless the woman's claim for the pension was lodged before 20 March 1997 and the woman is qualified for the pension before that day. This does not apply when the Secretary makes a determination to resume a woman's widow B pension under SSAct section 401 after it has been cancelled or suspended under sections 400, 400A or 400B. However, a woman on an autonomous widow B pension is still able to transfer to an agreement widow B pension overseas. In the latter situation, the transfer does not involve a new grant of widow B pension.

Wife Pension

After 30 June 1995, wife pension cannot be granted, even under an Agreement. An autonomous wife pensioner can transfer to an Agreement wife pension (when an Agreement covers this concurrent entitlement) as this is not classified as a 'new grant' of wife pension. Wife pensions granted under the Agreement before 1 July 1995 continue to be paid outside Australia. Wife pension can only be paid under the Agreement to a woman who has been an Australian resident at some time.

Last reviewed: 21 September 2015