Contribution to Previndai, as a result of the executive employment relationship, consists of::
• TFR (Severance Indemnity) Conferment
Consisting of the payment of a portion (contractually defined) or the entire accrual of the TFR.
• Minimum Contractual Contribution Payable by the Company
a) 4% of the taxable remuneration, to be applied within the annual remuneration ceiling of 200,000 euros and respecting the minimum contribution of 4,800 euros per year b) a further 2% of the taxable remuneration to be applied within the annual remuneration ceiling of 200,000 euros, which is added to the previous 4% measure.
• Minimum Contractual Contribution Payable by the manager
2% of the taxable remuneration, within the annual remuneration ceiling of 200,000 euros, without the application of any minimum
• Contribution Flexibility The company has the option, subject to agreement with the executive, to bear a portion equal to 1% of the contribution owed by the executive themselves, thus leaving a minimum contribution of 1% payable by the latter. In the presence of this contribution flexibility, the executive’s share for which the company assumes responsibility is added to the 2% share contractually provided for as payable by the company, as per point b) above.
The choice of rates is valid for a minimum of one contribution quarter, and its effective date must fall within a quarter for which the contribution declaration (form 050) has not yet been acquired: the choice cannot therefore have an effective date earlier than a date included in a quarter for which form 050 has already been submitted.
• Contribution flexibility
Starting from 1st January 2020, flexible contribution has been introduced: It is now possible for the company, upon previous agreement with the manager, to pay a part of the contribution charged to them up to a maximum of 3%, with a 1% as a minimum charged to the manager. The contribution part of the manager paid by the company is to be added to the one pertaining to the company itself, and it cannot be less than 4.800 Euros per year in the cases provided for by the contract.
The BoA of the Fund established that flexible rates shall vary with steps of at least 1 percentage point and shall be valid for at least one quarterly payment.
EXAMPLE OF CONTRIBUTION SCHEME APPLYING FLEXIBILITY OPTIONS
CHARGED TO MANAGER
CHARGED TO COMPANY
TOTAL CONRIBUTION
Rate 1%
Rete 4%
Additional amount to reach minimum of 4.800€
Additional flexible contribution rate charged to company 2%
Flexibility rate 1%
Total amount charged to company
80.000,00
800,00
3.200,00
1.600,00
1.600,00
800,00
7.200,00
8.000,00
100.000,00
1.000,00
4.000,00
800,00
2.000,00
1.000,00
7.800,00
8.800,00
180.000,00
2.000,00
8.000,00
–
4.000,00
2.000,00
14.000,00
16.000,00
250.000,00
2.000,00
8.000,00
–
4.000,00
2.000,00
14.000,00
16.000,00
• Additional contribution
It is possible to pay additional contributions compared to those minimally required. This option can be exercised autonomously by both the executives and the companies.
New memberships can also occur solely through the conferment of future TFR (Severance Indemnity) accruals (either explicitly or tacitly); subsequently, the executive can, at any time, choose to also pay the minimum contractual contribution at their own expense, thus benefiting from the employer’s contribution as well.
Contribution amounts
Contribution via the Employer
The contribution to Previndai is composed of the TFR (Severance Indemnity – a portion or the entire amount) and the minimum rates contractually set as payable by the executive and the company.
If you have chosen to join solely with the conferment of future TFR accruals, at any subsequent time you have the option to also pay the minimum contractual contribution at your own expense, thus benefiting from the employer’s contribution as well.
Without prejudice to the minimum measures contractually provided for, you can choose to pay further additional contributions at your own expense by communicating this to the employer; the latter also has the option to pay further contributions in your favor. Additional contributions are not affected by any ceiling limits.
Contribution without the Intermediary of the Employer
You can voluntarily contribute to the Fund without the intermediary of the employer by utilizing, based on the requirements you possess, the:
Voluntary contribution: if you have an active employment relationship that gives rise to contribution to Previndai;
Voluntary continuation: if your executive employment relationship has ceased.
