Transferable share: what it is and how to calculate it | Credit services

The contributions that workers pay during their working life are used to create a pension that should guarantee a dignified existence with acceptable living conditions. This rule applies to the pensions paid by each social security institution, whether it be Good credit or other private public administrations and not such as Nice bank.

Having said this, the pension represents a type of emolument which also allows the pensioner to access financing, albeit with some limitations. Among these we find that of the transferable portion which is linked to the transfer of the fifth of the pension.

What does it represent?

What does it represent?

As can be understood from the name, the transferable share represents the maximum amount of the pension that can be taken into account for the calculation of the installment of a fifth-party assignment. On the basis of this and considering the age of the applicant pensioner, the maximum sum that can be obtained overall will be determined.

The transferable portion is calculated starting from the gross pension amount. Tax deductions due by law must be deducted from this amount, arriving at the net pension amount (the amount actually received by the pensioner). From this we subtract the minimum pension calculated for that year (for example 502.39 for the year 2015 as per official Good credit source). In this way we arrive at the amount on which it will be possible to then go to calculate the installment that will actually be retained upstream by the social security institution. Examples can help us understand how the calculation takes place:

Example 1

Let’s take the example of a pensioner who has a pension of 600 USD gross. Now let’s assume that the minimum pension is 500 USD and the taxes paid are 50 USD. The transferable share will be equal to 600-50-500 = 50 USD.

Example 2

Now let’s think of a pensioner with a gross pension of 1500 USD. Let’s assume that the taxes are around 400 USD. In this case the net pension will be equal to: 1500-400 = 1100 USD. Given the high amount it is not necessary to subtract the minimum pension to safeguard the pensioner’s income. The calculation of the installment (which in this case corresponds to the transferable share) will be 1100 USD x 20% = 220 USD.

NB the calculation system is simple but one thing must be borne in mind: banks and financial companies may not grant assignments of the fifth with a very low maximum installment. So if you have a pension very close to the social one, it is always better to inquire with the various lenders.

Can an online calculation be made?

Can an online calculation be made?

Online there are tools that allow you to make simulations. There is also one on the Good credit website, which does not offer a precise but indicative calculation. There is no need to log in (therefore it can also be used by those who do not have the credentials to access the Good credit services ). As data to be entered there are only the amount of the pension received and your tax code. Being an indicative datum there could be differences on the actual calculation.

How can you request it?

The certification of the transferable share must be submitted to the finance company or the bank with which you want to request the transfer of the fifth of the pension. The request for this document must be made personally to your social security institution (proxies are not allowed). It is necessary to go with your own identification document and the health card to the territorially competent Good credit office, by filling in the appropriate form (which can also be downloaded online on the Good credit website in the “Forms” section).

By choosing financial companies that have Good credit agreements, the process becomes easier because by using specific telematic channels, the bank (or financial company) itself will request certification. It is clear that being a facilitation due to the agreement with Good credit it is not possible to have this facility with any social security institution.

If you are a retired Nice bank, in fact, you must request the portion that can be transferred personally and directly to the national assistance body for agents and sales representatives using the appropriate channels.

How long does it take?

How long does it take?

There are no fixed times. The release can take place on request, with a few minutes of waiting, but in other cases it can also take a few days. In order not to create discomfort, applicants are offered the possibility of sending by post to the address indicated in the request form for the transferable quota certification.

 

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