Further developments have now been confirmed with regard to the employer’s contribution for TEAEAPAE. The Pension Fund has recently contacted us stating that, by virtue of Ministerial Decree F.51020/34253/382, the contribution has been reintroduced from 1 January 2015 but that a deduction of 40% in respect of the payment is currently permitted. Thus only 60% of the total amount due would need to be paid to the Fund for the period from January to June 2015. Moreover, the Fund requested declarations for the months from January to September 2015 referring to the full amount. It is expected that TEAEAPAE quarterly payments shall attract the discount until further announcements.
 
In common with the views of many other market commentators, before taking a clear policy position FiscalReps is seeking a legal opinion as to whether the Decree is valid in law. Insurers should take a view on whether they will comply with the Decree in the meantime.