A news flash on “pension benefit’s reimbursement Decree” - LAW DECREE No. 65 OF MAY 21st, 2015

As known, the Italian Constitutional Court has handed down decision no. 70 of March 10th 2015, ruling that the provisions of Article 24, paragraph 25, of the Legislative Decree n. 201 of December 6th 2011 (), as converted by amendments by the Article 1, paragraph 1, of the Law no. 214 of December 22nd 2011, in so far as it provided that “In consideration of the current financial situation, the automatic annual revaluation of the pension benefits, pursuant to the mechanism provided for in Article 34, paragraph 1, of the Law no. 448 of December 23rd, 1998, is granted, for 2012 and 2013, only for pension benefits of an amount of up to three times the INPS minimum treatment, equal to 100%”,  are uncostitutional.

The Italian Government tried to take remedial actions forward this decision,  estimating the income economic effects over a potential out flow of ten billion of Euro.

A Law Decree has been approved yesterday, in order to limit these effects by introducing a reimbursement criterion of the undue held sums, which however is based on a constraint degree of accessibility.

By this new system, the State is called upon to reimburse pensioners in one-shot partial terms that are worse than what is due.

Moreover, there are many doubts abound the legitimacy of this choice, considering the erga omnes effects of the reimbursement right provided for in the decision of the Italian Constitutional Court.

Authoritative legal practitioners as well as the same Presidents of the Court have also expressed them in this way.

By a first reading of the Decree, there appear to be the possibility of a reimbursement of the due sums in two several shots: the first one as linked to its effects, the second to the appeals that will be lodged by the crowd.