The sale of the fifth INPDAP was a form of financing for retired ex-public workers, now provided by the Joint Management of Public Employees of the National Social Security Institute (INPS). When the INPS took over the functions of the former INPDAP, which managed social and social security within the public sector, the loans to former employees were also integrated into its services. The salary assignment is also used by current employees, but in the INPS area, the main beneficiaries of these loans are pensioners.
The salary assignment provides that the amount of the repayment installments of a loan obtained from the INPS ex INPDAP can never exceed one fifth of the pension received by the former public employee. This means that the monthly payment will never exceed 20% of the monthly pension check : for example, for a pension of 1,200, the installment should never exceed 240 euros per month. The calculation must also be made on the net amount of the pension, without considering other tax and social security deductions. Finally, the residue that remains to the pensioner after the payment of the installment can never be less than the minimum pension amount.
This formula therefore allows greater protection for the income of pensioners and is applied, for example, in the calculation of the amortization plan for small loans disbursed by INPS. However, the sale of the fifth is also widely used for the financing stipulated by the banks following an agreement signed with the Institute. These agreements allow easier access to credit for pensioners who have been state workers, who can use the pension as a guarantee of repayment, without having to resort to mortgages or signatures of third party guarantors. Furthermore, the agreement with the INPS allows the recognition of advantageous interest rates and, through the mechanism of the assignment of the fifth, ensures that the amount of the installments is sustainable.
To be able to enjoy the fifth assignment, it is necessary that the interested user requests the INPS declaration of transferability of the pension . Furthermore, it will be necessary to take out an insurance policy “for the risk of premiere”. Once the loan has been disbursed, the sale of the fifth INPDAP provides for the INPS to directly withhold the installment from the pension slip and pay it to the bank.