Changing pension systems
Traditionally, public pension schemes have been based upon a straightforward mechanism:
contributions paid in by individuals in employment made up the pensions drawn by retirees.
These systems are known as ‘share-out’ systems, which are sustainable as long as funds paid in to pension institutes are higher than or equal to the funds paid out as pensions.
As in other countries, the Italian share-out pension system is experiencing considerable difficulties.
From a financial perspective, the Italian pension system is no longer sustainable in the long term, despite substantial pension contributions paid in by employees (33% of gross income, compared with 19.10% in Germany and 16.35% in France).
Making compulsory payments into the public pension system is no longer sufficient: it has now become crucial to set aside money for one’s retirement on a private and voluntary basis.
Hence a second pillar emerging next to public pension systems: private pension schemes.
More and more countries are setting up private pension schemes. Open and closed pension funds have been established in Italy in order to encourage private savings for retirement purposes.
In other words, pension funds are medium and long term savings schemes, collecting contributions from members, who will then receive additional payments alongside their state pensions upon retirement.
Clearly, no private pension fund will ever replace a state pension, as it constitutes an additional source of income during retirement.
A fundamental principle holds true: the sooner you begin to pay into the fund, the higher your additional pension.
About The Pensplan Project
Pensplan was set up by the Regional Authorities of Trentino-South Tyrol in order to foster and develop additional pension schemes at a local level.
The Pensplan Project pursues the following objectives
The Pensplan Project corporate entities
The Pensplan Project comprises the following entities:
Pension funds set up in Trentino -South Tyrol
The following pension funds have been set up in Trentino -South Tyrol:
One closed fund
Laborfonds: a locally-based closed complementary pension fund with individual accounts and set contribution rates for employees working in Trentino-South Tyrol. The fund was set up in 1998 by the social partners. Strong support came from from the Regional Authorities of Trentino-South Tyrol, also in the light of the competences granted by the Statute of Autonomy. Laborfonds is the largest local closed fund in Italy in terms of number of members.
Three open funds
For more detailed information about Pensplan products and services please click here to open the Italian or German version of our site.
Bolzano - Via della Mostra, 11/13
Phone 0471 317 600 - Fax 0471 317 666
Trento - P.zza Erbe, 2
Phone 0461 274 800 - Fax 0461 984 147