Pension fund reform: Durigon says, ‘I do not rule out an extension to the upcoming deadline of 31 October’
The Under-Secretary of State for Employment, Claudio Durigon, explains the reasons behind the reform and does not rule out a postponement of the deadlines for the portability of employers’ contributions
He does not rule out a further extension to the pension fund regulations due to come into force on 31 October, and he has no objection to the ‘Swedish system’ provided that INPS plays a key role in the investments. Claudio Durigon, Undersecretary at the Ministry of Labour, explains his strategies in the supplementary pensions sector.
Senator Durigon, you are regarded as the architect of this ‘second reform’ of the pension funds, following Roberto Maroni’s reform twenty years ago. What prompted you to propose these changes, some of which come into effect on 1 July?
The main impetus stems from the Dini reform, which made the contribution-based system the predominant method for calculating pensions. We must find alternative solutions to tackle the low pension incomes we will soon be seeing. INPS figures indicate that from 2035, pension values will fall precisely because the contributory system has become the predominant one, replacing the income-based system. We want to strengthen supplementary pension schemes to give people – especially young people – an extra opportunity to secure their future pension income.
How do you intend to improve this system for future pensioners?
For example, we need to provide incentives and tax relief for the annuity scheme, which is currently under-utilised by those retiring and who usually withdraw all the capital accumulated in the fund straight away. More generally, the idea is to bring about a cultural shift whereby pension funds can offer additional services. One such service, which we are considering for the future, is Long-Term Care (LTC). Without this vision and without providing tax incentives for such schemes, we would be doing a disservice to Italia’s future.
