The History of the Italian Pension System Until 1992
In this paper the origin and the main developments until the reforms (in the 1990s) of the
pension systems in Italy is discussed. It is an area symbolized by frequent changes in the
systems. The pension systems were lacking a clear view how to properly deal with occurring
problems. This was also due to the politics. For instance, from 1922 to the end of the Second
World War Mussolini with his fascistic ideas ruled the country. The first republic (1946 until
1992) had to clean up the mess after the war and in the remaining years, politics were
highlighted by social conflicts and political instability. In 2004, in Berlusconi’s second period as
prime minister, 59 governments served since the second world war. The average duration of a
government since then was thus less than a year.
The first pension plans were established for public employees in the second half of the
nineteenth century. A voluntary pension scheme for private employees, to provide old age and
disability benefits, was introduced in 1898 and was made compulsory in 1919 (Franco, 2001: 5) in which employees had to pay via a payroll tax. Benefits were calculated on paid contributions.
This funded scheme was established and supervised by the INPS (National Social Security
Institute). In 1942, survivors benefits were enclosed in the schemes.
The schemes had to change in a PAYG scheme after the Second World War. This was due to the
effects of inflation and to the use of pension fund assets to support government finances
(Franco, 2001: 5). The transition was completed in 1952, when new rules were eventually
introduced, at the same time a guaranteed minimum pension level was also introduced
(Brugiavini and Galasso, 2003: 11). In the remaining years of the fifties nothing worth
mentioning occurred.
The seniority (long‐service) pensions, which can be taken at any age provided that the worker
has a minimum contributory period, were established in 1956 for public sector employees and
in 1965 for private sector employees and self‐employed workers (Franco, 2001: 5). The
seniority pensions turned out to cost quite a lot of money.
Public pension coverage was extended to the self‐employed, to work‐disabled citizens (in 1966)
and to elderly persons with low incomes in 1969. In 1969 pension benefits for private sector
employees started to be computed on the basis of earnings (final salaries) (Brugiavini and
Galasso, 2003: 12). As a result, the distribution of income between active workers and the
retirees straightened. During the same time, the pension schemes broadened their social
Can We Keep Our Promises? The purpose of this paper is to provide a summary of the article called “Can We Keep Our Promises?” by Robert D. Arnott, and to help better understand the three key risks facing each investor. Robert Arnott describes risk and return as “having two sides of the same coin” meaning risk is inseparable from return. Arnott points out the most important risks that are faced by managers of company pension plans: underperforming other corporate pension funds (their peers), losing money (mostly associated with portfolio standard deviation or volatility), and underperforming the values of pension obligations and therefore losing actuarial ground.
the War Veterans’ Allowance Board. This allowance, known among veterans as the “burnt-out pension,” was a discretionary benefit made available to veterans with overseas service who could no longer make a living.
The push for Congress to pass legislation protecting the rights of employees and their retirement was inevitable. Retirement plans are extremely important for all working individuals. Having funds to keep or exceed ones current standard of living and to enjoy one’s life beyond expectations after retire...
In America’s early days before the kickoff of industry, there was little need for retirement savings for a few key reasons. First of all, people were dying at a much earlier age; most people didn’t live past 38, whereas in 1900, 60 years of age was common for about 40 percent of the population and 15 percent experienced 80 years of life. Another reason for the irrelevance of social security in the 19th century and earlier was that people were usually living rurally on farms with extended families to take care of them. Furthermore, the Civil War also didn’t allow the government much economic room to consider providing a service such as social security. However, after the Civil War, pensions were a form of social security for civil war veterans that carried into their retirement. Unfortunately these pensions provided support for only a very small portion of the population; not even one percent of Americans received these pensions. Despite a much lower need for social security in the 18th ...
Originally, the program benefits were restricted to people who were aged 65 years old and older. However, now women and men who are 62 years old can receive these benefits. Furthermore, the program changed over time, and is now also known as the Old-Age, Survivors, and Disability Insurance
...r all their employees to contribute money towards the kitty. The mandatory payments will later prove useful and significant to them in their old age. Any new employees must be provided with this information on the importance and the benefits of the scheme. They must also acknowledge the fact that it will be a statutory deduction in their monthly pay schedule. This essentially prepares the workers psychologically to be ready for monthly deductions in their pay and ensure good interrelation between employers and workers.
Italy may be one country, but it has many different regions, which are diverse in dialect, and views of the country. (D’Alessandro)Throughout the country there are rarely times of unity and instead hostility is often held between cities. (Sassi) This non-unity could hinder the necessary changes to the infrastructure and transportation services. Another thing that could lead to more economic trouble is the lengthy processes of the courts that cause many criminals to be detained longer than necessary and therefore spend more money on them.
Social Security gained national commitment in 1950 when the Old Age Assistance program was phased out. Benefits were increased by 77 percent and the payroll tax rate was increased to 6.5 percent on a phased ? in basis. This increment was partly a response to an expansion in private pensions that were being won by unions in collective bargaining agreements. The pensions, usually, served as a supplement to social security benefits. Employers supported Social Security increases because they were considered more economical than private pensions. In order to increase Social Securit...
The Canadian Social Security system is broken down into three levels: Old Age Security (OAS), The Canada Pension Plan (CPP), and the private pension/savings. The first level (OAS) provides citizens that meet certain residence requirements with a modest monthly pension once they reach the retirement age of 65 (Totrov, 2014). Under the Canadian Social Security system, all citizens that meet the retirement age automatically receive retirement benefit. OAS is fina...
http://www.cnn.com/ALLPOLITICS/1998/04/10/polls/social.security/ U.S. News Magazine, Turning 40, March 20, 2000. Vol. 128, number 11 www.usnews.com, 2000 Benefits that last a Lifetime, 1997 Retirement solutions pamplet.
Pension provides an income when people have stopped working. Also, it provides important forms of insurance against long life, prices, relative benefit drops and savings shocks. As well as it is an important benefactor to the financial security of a majority of Australian men and women of retirement age, with about 70 per cent of people of pension age receiving the Age Pension (Australia and Treasury, 2015). The government can provide this type of insurance for less than it costs individuals to insure themselves by sharing long life risk, and hedging the
After World War I, there were two men that rose up to control their government in their countries. One was Adolf Hitler who was put in charge of the German government, and the other was Benito Mussolini who was put in charge of the Italian government. Adolf Hitler was born in 1889, and according to the lecture was known as a failure for not finishing high school, or becoming an accomplished artist. Mussolini was born in 1883, and was unknown until he came home a wounded soldier from the war. Mussolini would rise up and form the Fascist government focusing on being loyal to the state, and Hitler would rise up and control the Socialist German Workers Party, the Nazis.
The current pension plan which BTH provides to its employees are defined benefits pension plan. Defined benefits pension plan is an employer-sponsored retirement plan where employee benefits are sorted out based on a formula using factors such as salary history or duration of employment. The employer bears investment risk and controls portfolio management. The employer will need to dip into the company’s earnings when the returns from the investments devoted to funding the employee’s retirement result in a shortfall.
Title II of the initial Social Security Act of 1935 established a national arrangement intended to bestow economic protection for the nation's workforce. The system formed provided reimbursement to individuals who were 65 years old or older and who had "earned" retirement benefits through work in jobs covered by the system. Benefits were to be paid for by a payroll tax paid by employees and their employers on wages up to a certain amount. Monthly benefits we...
With the new structure of social security it provides pension to retired or disabled American, the social security is financed by the Federal Ins...