A recent decision by the Italian Supreme Court, Cassazione, has introduced significant changes to the calculation of pension benefits.

The ruling, documented as case number 30803/2024, was issued on December 2, 2023. It allows individuals to request the exclusion of certain contribution periods deemed less favorable from pension calculations.

This option, previously available only to those entering retirement, is now extended to individuals already in retirement.

The legal concept known as 'neutralization of contributions' enables pensioners to disregard up to five years of lower contributions in their pension calculations.

This adjustment aims to mitigate the financial impact of lower contributions earned during less remunerative employment periods preceding retirement.

The Supreme Court's ruling equates early retirement pensions to old-age pensions, permitting the exclusion of less favorable contribution periods in both scenarios.

According to attorneys Celeste Collovati and Massimo Leonardi, who specialize in pension law with the Dirittissimo legal firm, this ruling could prompt a wide range of pension recalculations.

The decision reaffirms the principle that the pension system must fairly reflect a retiree's entire career, avoiding significant financial penalties due to lower-income periods.

Furthermore, the ruling aligns with the constitutional principle of equality, aiming to ensure that short-term economic circumstances do not adversely affect an individual's retirement income.

This approach, characterized by its legal significance, contrasts with previous methods that focused solely on numerical calculations of contributions and wages.

In addition to these changes, pensions for February 2025 in Italy will be adjusted for inflation by 0.8%, as established by a Ministry of Economy decree.

This adjustment comes after some pensioners did not receive anticipated increases in January 2025, due to delays in applying the scheduled inflation adjustment from the 2025 Budget Law.

Pension disbursements for February are scheduled for February 1 for postal account holders and February 3 for bank account holders.

Pensioners can access details of their February 2025 payments through their personalized accounts on the INPS website.

Pension adjustments will follow a structured approach: for pensions up to four times the minimum amount, a full 100% inflation adjustment will be applied; pensions between four and five times the minimum will see a 90% adjustment; and pensions over five times the minimum will receive a 75% adjustment.