INPS: extend the “Value for newborns” Fund to families with minor children born before 2027

Extend the “Value for new born” Fund to families with minor children born before 2027, and combine the currently envisaged deduction with the possibility of deducting payments, as happens for supplementary social security (within the limit of 5,300 euros).

In the hearing at the Chamber Budget Committee on the 2027 Budget, the general director of the INPS, Valeria Vittimberga, put forward these two proposals to strengthen the scope of the Fund that the Budget law established at the National Social Security Institute. For each child born from 1 January 2027, the INPS establishes an individual position in the name of the minor, supported by 100 euros per year paid by the State and transferable to the supplementary pension upon reaching the age of 18 and communicates this to the parents or to those exercising parental responsibility. According to what Vittimberga explained, within three months of each birth the Institute will have to open the position (the estimate is around 356 thousand per year), collect additional payments from families, keep individual accounts and, from 2045, manage the transfer to the funds.

Parents, relatives up to the third degree and relatives up to the second degree can contribute to the financing of the position with voluntary contributions. The financial management of the resources is entrusted to Cassa Depositi e Prestiti according to prudential criteria: «Over time the Fund will be able to accumulate significant resources, which, in compliance with the prudential criteria established by the law - added the INPS Directorate - could also be directed towards long-term investments in the real economy of the country. This is a qualifying aspect of the measure, currently undervalued in the debate, which combines the social security protection of the new generations with the support of growth".

The budget law provides that additional payments by family members are deductible at 19% up to 1,000 euros per year. According to the INPS Directorate, to "further expand membership of the Fund, it could be considered to combine the deduction with the possibility of deducting payments, in line with the supplementary pension regime into which the Fund is destined to merge", an instrument of this type "could encourage families to allocate a greater portion of their savings to the Fund, strengthening the construction of social security capital for their children from birth".

The other proposal put forward by Vittimberga concerns "families with minor children born before" 2027 who "could have the same interest in building long-term savings for them. These families could also be allowed to open a position and make voluntary payments by applying the same deduction, even without the public contribution of 100 euros." The cost for public finances would remain limited to the deduction, with an increase in lower revenues estimated by the INPS in the order of 45 million euros from 2028, decreasing to zero starting from 2046. "For example, a disparity between siblings born before and after 2027 would be avoided", is Vittimberga's reflection.