ITALY - Second pillar pensions must be launched immediately to make up for the decreasing amounts people are receiving from the pay-as-you-go state system, declared the Italian Work Union (UIL - Unione Italiana del Lavoro).
In the final draft of its congressional thesis, the union once again highlighted the urgency with which second pillar pensions should be launched.
According the UIL, the “meddling” in the welfare system carried out in the 90s may lead to a new generation of poverty over the next few decades.
The draft stressed that the right to ageing with dignity was a principle of civilised societies and therefore the call for reforms in the pension system could not go unheeded.
The union reiterated its disapproval of the Trattamento di Fine Rapporto (TFR) reform being put off till 2008 by Silvio Berlusconi’s government.
The TFR reform, when eventually implemented, aims to stimulate the DC sector by encouraging workers to transfer their termination indemnity payment to either a privately managed open-ended pension fund, or an industry wide ‘closed end’ pension fund. Historically, this payment was made by their company into a TFR fund held on their behalf.
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