The transfer of the fifth of the pension is a type of loan dedicated to pensioners. It falls into the category of personal loans.
Read the article to learn more about the topic.
What is the sale of the fifth pensioner
The sale of the fifth for pensioners was introduced with a MEF decree in 2016 as an extension of the salary-backed salary.
Before that date it was possible to access this type of loan only to employees.
This loan has provided a valid alternative for access to credit for pensioners, often limited by age or other factors.
The peculiarity of this financing is in the calculation of the maximum installment that can be set. This cannot exceed one fifth of the net pension always respecting the minimum income established by the law.
The customer and the credit institution establish a repayment installment which will be withheld directly from the pension fund by the social security institution and paid to the financial company as a loan repayment.
To date, the minimum to be respected by law is € 502.39. So if we have a 620 € pension the fifth maximum is not 124 € (620 € / 5) but it is 117.61 € (620 € -502.39 €). The duration of the loan goes from a minimum of 24 months to a maximum of 120 months. Loans cannot be made for a longer duration.
It also provides for compulsory insurance cover for life risk. This covers the risk of death of the pensioner, providing in this case a coverage of the residual debt of the loan by the insurance company.
Assignment of the fifth pensioner: what is required?
The fifth assignment for pensioners can be requested from any credit institution that provides this type of loan. The necessary documents to present are the following:
- Identity card and health card
- Cud model
- Analytical summary of the pension (Obis-m RS Insurance Model) or pension slip
- Transferable share certificate
The transferable quota is a document on which is indicated the maximum installment that can be withheld for a loan (which is equivalent to one fifth of the pension) and to which one must strictly follow. In the case of pensions managed by the RS Insurance, the transferable quota can be downloaded directly by the financial company if it holds a RS Insurance agreement.
With the transferable portion of the pension you can make a calculation for the assignment of the fifth as the transferable fifth is established (the installment can be exceeded in any case the amount of the transferable quota).
The vast majority of retirees depends to RS Insurance but the sale of the fifth on board may ‘be required even if you feel the board from other agencies.
The pensioner in possession of this documentation can ask for a quotation form.
Once the contract has been signed, notification is made to the social security institution which will assess the contractual fairness and compliance with the parameters indicated by the law.
In fact, for the loan to be issued, the credit institution must be in possession of the ” approval ” issued by the relevant RS Insurance office (or by the relevant institution) which confirms the request for the loan and the start of the pension amortization plan from the following month.
Timeframe for the sale of the fifth of the pension
The timing for the disbursement of a loan by assignment of a fifth of the pension is very rapid, especially if it concerns pensions managed by the RS Insurance. In fact, the agreement between RS Insurance and the banks has helped a lot in this sense by allowing the download of the transferable quota and the electronic notification.
So no more files at the RS Insurance for the request of the transferable share certificate!
Where instead the pensioner already has a loan with the transfer of the fifth of the pension with another financial the timing could be extended.
It is in fact a renewal of the assignment and the financial company will have to contact the counterparty to request the extinction count to effect the extinction of the loan in progress.
The renewal of the sale of the fifth of pensioners must comply with the regulations and the timing of the assignment of the fifth salary.
To complete the renewal procedure, he must also send the release to the RS Insurance office (or to the relevant institution) that otherwise will not process the loan request.
As indicated also in the transferable share certificate, no two loans with a salary-backed loan are envisaged. However, the financing through the sale of the fifth pensioner can coexist with an attachment present on the pension.
Who can access
This loan can be paid to the holders of the survivor’s pension or of the contributory type paid out definitively.
Even if the vast majority of pensioners depend on the RS Insurance, the loan with a salary-backed loan can also be requested by pensioners of other social security institutions.
They cannot be paid to the holders of the following pensions:
- Social allowances
- Civil disability
- Income support checks
- Minimum pensions
It is possible to request the transfer of the fifth of the invalidity pension only if the pensioner also receives a contributory or survivor’s pension.
In this case the transferable quota will be calculated only on the work pension. Therefore, if you receive € 500 of a disability pension and a € 1000 contribution or survivor’s pension, the maximum installment will be € 200.
Fifth pension assignment and attachment
The assignment of the fifth of the pension cannot coexist with other voluntary deductions (therefore with other loans). In fact the social security institution must protect the pensioner and his own income and does not grant more than a loan on the pension.
However, there is the possibility of obtaining a retirement pension even in the presence of an attachment as long as the sum of the two deductions does not exceed 40% of the net amount of the pension.
It may be in this case that the maximum installment we can surrender is less than fifth because maybe the attachment exceeds 20% of the pension. This calculation is always carried out on the transferable quota.
Loan for joint pensions
If we have a joint pension, we can request the fifth year pension.
In this case the transferable fee will be calculated only on our part and not on the whole pension.
The fifth transferable will therefore not correspond to the fifth of the total pension but will be lower.
The cases in which the pension can be jointed are for example in the case of survivors’ pensions with dependent children or with dependent children.
In the specific case of RS Insurance pensions, the transferable fee cannot be downloaded electronically but we will have to go to the counter to let us issue a transferable quota calculated by hand.
We can then make the request for the sale of the fifth pensioner.
Benefits of the pension assignment
The sale of the fifth introduced a valid alternative to classic personal loans for pensioners. The advantages are many:
Unlike personal loans, the pension assignment provides for greater flexibility on the age of the applicant. In fact some companies provide for the possibility of expiring the contract even up to 87 years .
This is clearly possible thanks to the obligation to subscribe to a life risk insurance.
In fact, the assignment of the fifth of the pension in the event of death requires that the insurance company cover the residual debt of the loan without being able to be asked by any heirs.
This is a guarantee especially for the spouse who will receive the survivor’s pension and in case of death will receive the income without having to continue to pay the loan with the fifth
Even with negative data in the database
Another advantage relates to the possibility of being able to access the loan even in the presence of recently rejected loans or negative notifications to SICs or protests.
The preliminary assessment of the sale of the pension entails in some cases access to the databases by the financial company only to assess creditworthiness and any negative reports will not affect the success of the request.
Finally the rates can be very advantageous in some cases. This is a secured loan with a very low default rate that can allow financial companies to have very competitive rates.
Especially for young retirees, where the cost of the policy is fairly low as there is less risk.
Request a free quote for the retirement pension.