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...
The liberals introduced an old age pension for people over seventy years old and with no other income. They also introduced a married couples pension. Pensions were not a new thing but the most radical thing about these pensions was that they were entirely government funded. The pension was not incredibly large and the average working class person did not live to be 70 but for those who did the pension made them independent. In the year after the introduction 80000 people stopped claiming relief from charities.
Throughout the 20th century governmental responsibility has made remarkable progress. One major milestone of the widening of the responsibility of the federal government was it’s making an obligation to care for the elderly and retired in the form of social security. In 1935, the Social Security Act was enacted by the federal government to provide financial security to the elderly, retired citizens in America. Although the federal government first took on this responsibility in 1935, it is still affecting our lives today. However, social security would not have advanced this far without many organizations and individual reformers to begin and improve social security throughout history.
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
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.
Employee health benefit plans flourished in the 1940’s and 1950’s. Unions bargained for better benefits, which included tax-free, employer-paid health insurance. When war hit between 1939 and 1945, government froze wages which led to an increase of group health care. Since employers were unable to attract employees with higher wages, employers decided to improve their benefits package by adding health care coverage. Gove...
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.
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...