The Italian Ceddione del Quinto (CDQ) is primarily regulated by the Decree 180 dated 1950 and, for its nature, it does not require any previous agreement or contract with the employers in the relationship between the funding applicant and the supplying institution.Those agreements, or conventions, were introduced by a circular of the General Accounting Office in 1996 for financing operations of Delegazione di Pagamento (DP) that, mainly regulated by articles 1269 and following of the Civil Code and by the provisions of the Presidential Decree 180/50, are intended for employees of the public sector and of the government.
The existence of an agreement between the service provider and the state administration has become in this way the condition to match CDQ and a second guaranteed loan similar to the first under many points of view, but with a different legal status, and whose payment is not regulated by the Decree 180 of 1950 if not for a subsequent assimilation.
Since 1996, the circulars by the General Accounting Office have regulated and clarified many aspects of the conventions that authorize the provision of financing operations assisted by salary deducted payment. Below are reported the main stages of the regulatory legislation related to salary deduction payments:
Circular 2 of January 15th 2015: the circular suggests an agreement pattern for DP for all public administrations that use the NoiPA system (that replaced the Treasury Personnel Service-SPT) for managing their employees ‘salaries as well as for all state accounting departments that use other systems. It highlights that the agreements concerning DP may include, in addition to loan contracts, also insurance contracts, third-party liability contracts for vehicles, and contributions to non-profit organisations and other national health institutions. For each category, a standard agreement and a DP forms are provided. The circular sets for following steps for filing in a DP request:
- Submission of the request to the relevant administration department or to the office in charge for paying the salary;
- Verification by the receiving office of the request correctness;
- Release of the B-1 form to the delegatee;
It also restates the amounts of the administration fees: € 18.00 for each newly activated DP and € 2.05 per month for each active salary deduction payment directly made by the delegated accounting department by using the amounts deducted to the employee and destined to the delegatee.
Circular 1 of January 17th 2011: the circular suggests an agreement pattern that implements the instructions contained in the above-mentioned circulars. They restate the amounts of the administrative costs: € 18.00 for each newly activated deduction and € 2.05 per month for each active deduction (amounts still in force). Moreover, the circular sets that from July 2011 onwards, the fees shall not be paid by the delegatee institutions through postal order but directly deducted from the amount of the instalment destined to the delegatee institutions, and shall be paid by the DCSII through the Treasury Personnel Service - SPT to the relevant yielder of the national budget income.
Circular 35 of December 2nd 2008: the circular states that, from 01/10/2008, the costs to be borne by the delegatee institutions are equal to € 1.10 x 2 x 12 = 26.40 in full amount, and equal to € 0.92 x 12 = 11.04 in reduced amount.
Circular 646 of April 13th 2006/GAD and Circular 654 of April 20th 2006/GAD:the circular states that the duration of the DP can also be of ten years if specified in the authorization agreement.
Circular 21 of June 3rd 2005/RGS and Circular 554 of July 29th 2005/GAD:this circular has allowed from 01.01.2005 the transfers for State employees also by guarantee (for the risks mentioned in art. 32 of Presidential Decree 180/50) of private institutions as an alternative to the guarantee provided by INPDAP, provided that loans are agreed with the institutions mentioned in art. 15 of the Presidential Decree 180/50. It also restates the limit of half salary in case of competition between the CDQ and the DP, unless the accounting department acknowledges by suitable statement the existence of the conditions which authorize higher amounts. The forms A and B-A1-B1 are introduced while defining the preliminary operations procedure.
Circular 37 of September 5th 2003/RGS: the circular reiterates the limits of transferability for CDQ and DP individually considered in one fifth of the salary as set out in Articles 5 and 65 of the Presidential Decree 180/50. In case of overlapping between the CDQ and DP legal or contractual transfer or deduction, the limit is equal to half the salary as set by art. 70 of the Presidential Decree no. 180/50.
Circular 29 of March 11th 1998/RGS: the circular provides for a reduction of the burden incurred by the supplying institution if the number of enabled operations exceeds 100.
Circular 63 of October 16th 1996/RGS: The circular stresses that the funding to be settled by salary deducted payments shall issued by the institutions mentioned in art.15 of the Presidential Decree dated January 5th 1950, number 180, and that the deductions shall not exceed the limits imposed by the Consolidated Financial Law (Testo Unico Bancario). Furthermore, it stresses the need for the preventive signature of an agreement between the accounting dpt. and the supplying company in order to set the costs to be borne by the latter. Similarly to what is stated by the consolidated financial law regarding the CDQ and also regarding the DP, the maximum deducible monthly amount shall be equal to one fifth of the monthly salary net of taxes, and in case of concurrence of the DP with the sale guaranteed by the fund and/or with other deductions, even if its implementation is necessary for the accounting department, it shall not exceed half of the salary.
Circular 46 of August 8th 1995/RGS:expresses the need for a written agreement between the credit service provider and the public administrations, providing for a contribution to be paid in order to cover the expenses for activities related to the payments of monthly instalments. The amount of the contribution in practice shall then be equal to the double cost of the postal order.
The list of Authorisation Conventions signed by Mediocredito Europeo SpA is available