Pension 2019: indemnity Inps traders

Inps compensation returns for traders who have closed their business: 57-year retirement for women and 62 for men.

Have you closed the activity recently and are you out of work? Perhaps you do not know that even traders and sales agents, if they have certain requirements, are entitled to a sort of unemployment, or better early retirement, by INPS, called compensation for closure activities.

The subsidy is equal to the minimum pension treatment and is recognized starting from the age of 57 for women and 62 for men, until reaching retirement age (ie age for retirement pension, which is the same for men and women), ie up to 67 years.

The possibility of obtaining compensation, foreclosed for 2 years, has recently been reactivated thanks to Budget Law 2019 [1]

But let’s proceed by order and see how the Inps compensation 2019 pension works: who is entitled, how much it is and how it is paid.

Index

  • 1 How does compensation for business closure work?
  • 2 What are the requirements for obtaining compensation for traders 2019?
  • 3 Until when is the right to compensation for closing activity?
  • 4 How do you ask for compensation for closing activities?
  • 5 From when does the compensation for closing activity start?
  • 6 Do pension contributions apply during the indemnity period?
  • 7 Can you work with compensation for closing activity?
  • 8 How is the compensation for closing activity taxed?

How does compensation for closing activity work?

Compensation for termination of employment is a monthly allowance, comparable to a sort of unemployment or early retirement, of an amount equal to the minimum pension in the management of artisans and traders, ie, for the year 2019, equal to 513.01 euros per month: the function of the indemnity is to accompany the worker who has ceased activity up to retirement. Upon reaching the retirement age, the allowance is converted into a direct pension.

What are the requirements to get the 2019 merchant compensation?

To obtain the indemnity it is necessary to possess the following requisites :

  • have been the owners, merchants or coadjutors of a retail business, or the supply of food and beverages;
  • have been owners or coadjutors of commercial activity on public areas;
  • having been agents or sales representatives;
  • have closed the activity, that is having requested the cancellation of the activity to the Chamber of Commerce and having returned the commercial license to the Municipality of residence;
  • be registered for at least 5 years in the Special Management Inps Dealers, at the time of application;
  • be at least 57 years of age at the time of application, if women;
  • possess at least 62 years of age at the time of application, if men.

To prove the closure of the activity and to be entitled to the recognition of the indemnity, it is necessary to:

  • the eventual return to the Municipality, where the company is located, of the authorization for the exercise of a retail business or the supply of food and beverages;
  • the cancellation of the activity from the register of companies to the Chamber of Commerce (through Comunica);
  • for agents and representatives of commerce, the cancellation from the provincial role held at the Chamber of Commerce.

Until when is the right to compensation for closing activity?

Compensation is due from the time the application is submitted until the age at the retirement pension is reached, ie up to the age of 67, the new retirement age from 1 January 2019, based on adjustments to the average life expectancy.

Recall that the retirement age, for those registered in the management of INPS traders, in the past years was as follows:

  • 66 years and 1 month of age, by 31 December 2017, for women;
  • 66 years and 7 months of age, by 31 December 2017, for men;
  • from 2018 onwards, the age requirement for the retirement pension was equalized and was equal to 66 years and 7 months for all, up to 31 December 2018.

From 2021 the requirement should be increased, for all, to 67 years and 3 months; however, if ISTAT finds a decrease in life expectancy, the requirement will remain at 67 years.

How do you ask for compensation for closing activities?

To request compensation, it is necessary to fill in the Ap95 model and prepare the required attachments in the form, which will soon be included in the INPS website. The application can be submitted either through the INPS web services, for those who own the pin, the national service card or the Spid digital unique identity, or through a patron or a qualified intermediary.

Since when does the compensation for closing activity start?

You are entitled to the indemnity starting from the first day of the month following the one in which the request was presented, up to the date on which the retirement age was completed, as described above.

Are the pension contributions payable during the indemnity period?

During the indemnity period, the figurative contributions for the achievement of the right to a pension are credited, while these contributions are not useful for pension measures, ie they do not increase the allowance.

Can you work with compensation for closing activity?

Compensation is incompatible with any work activity, whether autonomous or dependent: if the interested party starts a new activity, he must inform INPS within 30 days.

Compensation is instead compatible:

  • with the retirement pension;
  • with early retirement [2] ;
  • with the disability pension and the ordinary disability allowance [3] ;
  • with social allowance (but, in fact, involves the withdrawal of the social allowance, because the compensation exceeds, in most cases, the maximum income threshold to benefit from the allowance).

If the person concerned matures the right to early retirement during the enjoyment of the indemnity, thanks to the figurative contributions credited, he can access the early retirement pension and continue to benefit from the indemnity up to the month of retirement age.

How is the compensation for closing activity taxed?

Compensation is not tax-free but is subject to taxation, ie fully taxable income tax. The indemnity does not give the right to receive family allowances; no trade union detention can be carried out on it.

Note

[1] Art.1, Co.283-284, L.145 / 2018

[2] Inps Mess. No. 4832/2014.

[3] Inps Mess. n. 7384/2014.

[4] Inps Circ. n. 20/2002.