ITALY - Some 80% of Italian companies have stated a company pension scheme is central to employee benefit and reward policy, according to a survey by Watson Wyatt.
Until now, company behaviour had been dictated by constraints imposed by legislation that has led to 60% of Italian multinational companies offering an industry-wide pension fund.
But, recent legislation meant that Italian employees are now free to choose between the various pension vehicles available, however, it was expected to cause problems for companies because of the administrative burden an array of individual choices poses.
According to the Watson Wyatt research, cost and performance were not the principal criteria for selecting managers of open pension funds. Instead, it was the financial stability and background of the managers, their administrative efficiency, and the services they offered to clients.
Watson Wyatt benefits practice leader in Italy Livio Mocenigo said: “Our survey reveals a renewed interest on the part of Italian companies on the topic of pension provision. It will of course take some time until pension provision takes on the importance that it has in Anglo-Saxon countries.”
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