Italy

A radical overhaul of the pension system is under way in Italy. A number of partial reforms had already taken place; but the draft Bill dated 17 May 1995 proposes a new structure, compatible with the financial and demographic situation of the country. After analysing the critical weaknesses in the present system, the author goes on to describe the general lines of the reform provided for in the draft Bill, explaining succinctly the principal innovations. In particular, he describes the new system of calculating pensions and illustrates the proposed changes to the systems of invalidity allowances, disability pensions and adjustment upwards to the established minimum. This is followed by a description of the new rules governing contribution‐based old‐age and long‐service pensions and the proposed changes in the automatic adjustment system. The author approaches the problem of adjusting contributions to the new system and describes the principal changes introduced in line with the general principles underlying the conditions for entitlement to pensions under that system. This description and assessment of the main outlines of the new reforms of the pension system ends with a discussion of complementary pension insurance and an initial estimate of the savings to which the new system will give rise.