Particular cases of multiple totalization
Multiple totalization is an advanced and often complex aspect of the international social security system, which offers the possibility of adding together insurance periods accumulated not only between two contracting States, but also in additional “third States”. These third States are countries other than those that signed the initial bilateral agreement. This option is provided for by certain specific bilateral social security agreements signed by Italy, significantly expanding opportunities for workers with fragmented careers in more than two countries.
Calculation of the pension with foreign contributions
The calculation of the pension with foreign contributions through totalization is a process that allows you to value your insurance periods accumulated in different countries in order to meet the requirements for entitlement to a pension, without the contributions being physically transferred from one State to another. Each country involved, once the right is recognized through the sum of the periods, will calculate and pay its own share of the pension, defined as “pro-rata”, based on the contributions actually paid into its social security system and according to its own legislation.
For workers who have accumulated contributions in EU countries, or in States with similar agreements, the calculation system generally provides for two scenarios:
- Autonomous pension: if you are able to qualify for a pension exclusively with the contributions paid in Italy, the INPS (or the competent institution) will calculate the pension amount based only on Italian legislation.
- Pro-rata calculation: if the foreign periods are necessary to qualify for a pension, a “theoretical amount” of the benefit is determined. This amount is calculated as if all insurance periods (Italian and foreign totalized) had been completed entirely under Italian law. Subsequently, the “actual” pension amount is calculated by reducing the theoretical benefit in proportion to the periods completed in Italy and the total duration of all periods considered (Italian and foreign).
A fundamental principle is that the worker is always entitled to receive the most favorable amount between the autonomous pension (if accrued) and the pension calculated using the pro-rata method. It is essential that the foreign insurance periods do not overlap with those credited in Italy. In addition, for international totalization of contributions, a minimum period of insurance in the country granting the pension is required: for the EU Regulations it is one year (52 weeks), while the bilateral agreements establish different periods, for example 52 weeks for Argentina and the USA, or 1 week for Brazil and Uruguay.
Totalization of insurance periods in non-EU States with agreements with Italy
The totalization of insurance periods in non-EU States with agreements with Italy is a fundamental mechanism for workers who have accrued contributions in countries outside the European Union, but with which Italy has signed specific agreements on social security. This procedure does not imply the transfer of contributions from one State to another, but allows you to add together the insurance periods accrued abroad with those in Italy for the sole purpose of reaching the requirements necessary to obtain the right to a pension.
These bilateral agreements were created to protect the social security rights of migrant workers, ensuring them continuity of coverage and equal treatment compared to citizens residing in the State of employment. Each agreement defines its own specific rules in terms of requirements, benefits provided and minimum contribution periods. For example, for some States with agreements such as Argentina, Australia, Cape Verde, Croatia, San Marino, the United States of America, Tunisia, Turkey and the Vatican, the minimum period of insurance required is 52 weeks. For others, such as Brazil, Jersey and the Channel Islands, Uruguay, Bosnia-Herzegovina, Serbia-Montenegro and Macedonia, it may be as little as 1 week, while for Canada-Quebec and the Principality of Monaco it is 53 weeks.
Italy has signed social security agreements with a wide range of non-EU partner States, including: Argentina, Australia, Bosnia-Herzegovina, Brazil, Canada/Quebec, Principality of Monaco, Cape Verde, Croatia, San Marino, Holy See, Tunisia, Turkey, USA, Uruguay, Venezuela, Israel (partial), and the States of the former Yugoslavia. It is important to note that some agreements may be partial or cover only specific areas, such as the one with Mexico (only pension payments in Italy) or with the Republic of Korea (only secondments). Totalization with non-EU countries is particularly advantageous because it allows you not to lose the contributions paid in countries where, individually, you would not have reached the minimum required for a pension.
To start the international totalization procedure for contributions, the pension application must be submitted to the competent institution of the country of residence (in Italy, the INPS). This institution will then coordinate the process with the social security bodies of the other countries involved. Detailed knowledge of these agreements is crucial for proper management of the procedure and to ensure that all insurance periods are duly recognized and valued.
The regulations governing the totalization of foreign contributions are notoriously complex and constantly evolving, making it difficult for an ordinary person to navigate this path alone. Dealing with EU Regulations, bilateral agreements, the specific requirements of each country and bureaucratic procedures can be an arduous and frustrating task. The International Law Firm Boschetti is specialized in international mobility and can also assist its clients in this field, offering professional and targeted support to workers who have accrued insurance periods in Italy and abroad.
Our team of experts is here to provide you with comprehensive support, from the initial assessment of your position to the receipt of your pension. We can:
- Analyze your overall social security position: we carefully assess all your contributions, both in Italy and abroad, to understand which totalization tools are applicable to your situation.
- Verify the necessary requirements: we determine whether you meet the conditions for simple or multiple totalization, taking into account the specificities of the countries involved and the minimum durations required under each law.
- Collect and prepare the documentation: we assist you in gathering all the required documents, including any sworn translations, apostilles or consular legalizations, which are often essential in international contribution totalization procedures.
- Assist in submitting the application to INPS: we guide you in correctly completing and submitting the totalization application to INPS, ensuring that all information is accurate and complete.
- Interface with foreign social security institutions: we handle relations with the social security bodies of foreign countries, acting as your point of contact to ensure proper recognition of your rights and to monitor the progress of the procedure.
- Maximize pension benefits: our goal is to ensure that all your insurance periods are valued in the best possible way, helping you obtain the most favorable pension. This also includes evaluating between foreign totalization and the possible “redemption” of contributions, where both options are available, to choose the most advantageous solution.
Do not let the complexity of the laws on contribution totalization for foreigners prevent you from obtaining the pension you have earned. Contact the International Law Firm Boschetti for a personalized consultation and discover how we can help you build a secure bridge towards your retirement future.
