Anyone who has worked in several countries during their career should pay particular attention to their pension record. As retirement approaches, it is not enough to know the contributions paid in Italy: it is also necessary to reconstruct the periods of employment and insurance completed abroad and verify that they have been correctly recorded by the various pension institutions.
For those who have accrued pension contributions in several countries, preparing in advance primarily means checking their contribution history, keeping the relevant documentation and verifying the procedures for claiming a pension in each country well ahead of time.
Managing a pension involving foreign contributions can be complex because each country retains its own pension rules, while international agreements establish how the different systems are coordinated.
Documents to Keep and Check Regularly
The first step in preparing for retirement is to reconstruct your employment and pension history accurately.
Identify All the Countries in Which You Have Worked
It is useful to prepare a list of all the countries in which you have been employed, indicating the following for each one:
- Employer;
- Employment period;
- Type of employment relationship;
- Pension institution to which contributions were paid;
- Any periods of secondment or simultaneous employment in more than one country.
This may seem straightforward for someone who has always worked in the same country, but it becomes particularly important when a professional career has spanned Italy, Switzerland and other countries.
Check Your Pension Statements
You should periodically check the pension statements available from the relevant institutions.
The aim is to verify that the recorded periods correspond to the periods actually worked and that there are no missing entries or discrepancies.
Checking your records while retirement is still some way off can be much easier than trying to obtain documents relating to an employment relationship that ended many years earlier.
If any missing contributions are identified, it is advisable to contact the competent pension institution promptly to request a review and, where necessary, a correction of your record.
Keep Form A1, Where Applicable
For posted workers or certain situations involving employment in several European Union countries, Form A1 can be used to certify which social security legislation applies to the worker.
It does not apply indiscriminately to everyone working abroad: its relevance depends on the specific circumstances. When it is issued, however, it is advisable to keep a copy together with the other pension-related documentation.
Keep Your Employment Records
In addition to pension statements, it is advisable to retain:
- Employment contracts;
- Salary certificates and documents equivalent to Italy's Certificazione Unica;
- Payslips, where available;
- Certificates confirming periods of employment;
- Documents relating to secondments;
- Social security certificates;
- Any Form A1 documents;
- Documents relating to supplementary or occupational pension schemes.
The last point can be particularly important for anyone who has worked in Switzerland. In addition to the state pension system, further occupational pension arrangements may exist, such as the so-called second pillar, which must be considered separately from the state pension.
Applying for a Pension
A pension claim involving foreign contributions is normally submitted to the competent pension institution in the country of residence, or in accordance with the procedures established by the applicable agreements.
For people residing in Italy who have also accrued insurance periods in other EU or EEA countries or in Switzerland, the Italian National Social Security Institute (INPS) provides a specific procedure for pension claims under the EU coordination system.
For people residing in another EU or EEA country or in Switzerland who have accrued insurance periods in Italy, the application is normally submitted to the pension institution in their country of residence, which then forwards it to INPS.
All Countries in Which You Have Worked Must Be Declared
When submitting a pension application, it is essential to indicate every country in which you have been insured and all the relevant insurance periods.
The institution receiving the application can then initiate coordination with the pension institutions of the other countries concerned.
For this reason, reconstructing your employment history in advance is particularly useful. It reduces the risk of overlooking periods of employment abroad or having to reconstruct your contribution history after the application has already been submitted.
Contributions Are Not Transferred from One Country to Another
This is one of the most important aspects to understand.
The international aggregation of insurance periods does not involve transferring contributions from the pension institution of one country to that of another.
Under the European coordination system, insurance periods accrued in different countries may be taken into account when determining entitlement to a pension, subject to the conditions laid down by the applicable legislation.
In other words, contributions remain within their respective pension systems.
Each Country Determines Entitlement to Its Own Pension
Having contributions in several countries does not automatically mean that a single pension will be calculated as though all contributions had been paid in Italy.
Each country determines entitlement to its own pension under its national rules, applying international coordination provisions where relevant.
For the purpose of establishing entitlement, insurance periods accrued in other countries may be aggregated with domestic periods. Each institution then calculates the benefit or share payable under the applicable rules.
It is therefore possible for a person to qualify for pension benefits from several countries, with different commencement dates or calculation methods.
Pay Attention to Different Retirement Ages
Another factor to check in advance is the statutory retirement age in each country.
Entitlement to a pension does not necessarily arise at the same time in every country in which you have worked.
European rules require each country to apply its own legislation, meaning that the different pension shares may become payable at different times. It is therefore advisable to check your pension record in each country before deciding when to submit your application.
A Practical Example
Consider a worker who has completed:
- 20 years of employment in Italy;
- 8 years of employment in Switzerland;
- 5 years of employment in Germany.
When retirement approaches, the worker will not simply transfer their Swiss and German contributions to INPS.
Instead, they will need to declare the different insurance periods in their application. The pension institutions involved may take the periods accrued in the other countries into account when assessing eligibility, in accordance with the applicable rules.
Each institution will then determine the pension benefit payable under its own legislation and the relevant coordination rules.
The outcome may therefore consist of several pension shares or benefits, each linked to the pension rights accrued within the different systems.
Why You Should Start Checking Your Pension Record Before Retirement
Your pension record should not be reviewed only when retirement is just a few months away.
For transnational workers, starting well in advance is useful because the review may reveal:
- Unrecorded periods of employment;
- Discrepancies between employer documentation and pension statements;
- Changes of employer or pension institution;
- Periods of secondment;
- Insurance periods accrued in different countries;
- Missing documentation;
- Supplementary pension arrangements that need to be considered separately.
An International Pension Requires an Overall View
For anyone whose career has spanned several countries, submitting a pension application is merely the final stage of a process that should begin much earlier.
Preparation primarily involves creating a personal “pension roadmap” identifying:
- Which countries are involved;
- Which periods were worked in each country;
- Which institutions received the contributions;
- Which periods have actually been recorded;
- Which documents can substantiate the employment history;
- Which international rules apply;
- When the eligibility requirements are met in each country.
A systematic review of these elements makes it possible to approach a pension claim involving foreign contributions with greater confidence and to address any discrepancies in good time.
Frequently Asked Questions
If I have worked in several countries, do I need to transfer my contributions to Italy?
No. Under systems coordinated by EU legislation and the applicable international agreements, contributions are not simply transferred from one country to another. Insurance periods may be taken into account when determining entitlement to a pension, while each system determines the benefits for which it is responsible.
Can I receive a pension from more than one country?
Yes, this is possible. When a person has accrued pension rights in several countries, each country may pay its own benefit or pension share under the applicable rules. The commencement dates may also differ.
Should I keep old employment contracts from abroad?
It is strongly advisable to do so. Employment contracts, salary certificates, pension documents, certificates of employment periods and other records may be useful in reconstructing your pension record if the relevant institutional records contain gaps or inconsistencies.
Is Form A1 required to apply for a pension?
Form A1 is not a document specifically intended for pension applications. Its main purpose is to certify which social security legislation applies in certain transnational employment situations, such as secondment. If it has been issued, it is advisable to keep it because it may help substantiate your social security status.
When should I start checking my pension record?
Anyone who has worked in several countries should check their pension statements and supporting documentation regularly, allowing enough time to correct any discrepancies.
Conclusion
For transnational workers, being prepared for retirement primarily means not waiting until the pension application stage to reconstruct their contribution history.
Checking pension statements, retaining relevant documentation and identifying all the countries involved well in advance make it easier to navigate a process that can be complex when several pension systems are involved.
Studio Barbara Antonini provides tax and social security consultancy services to cross-border workers, posted employees and individuals who have accrued pension rights in an international context.
To review a pension position involving several countries, you can contact the firm for an initial discussion about your documentation and individual circumstances.
