AUTHOR: Sandro Trento.
We speak today of some changes taking place for pensioners, from 1 January 2010 will come into force the new transformation coefficients.
Since 1995, with the Dini reform was introduced in Italy for workers who, on 31 December 1995 were under 18 years of contributions, a new system of calculating the pension is defined contribution system. The contribution system provides that the pension is calculated on the basis of all the contributions to be paid throughout the working life of each worker.
Then, at the time of retirement, ie at the end of working life, contributions which were paid by each worker are added together: in this way we obtain what is called the contribution base Overall, that is the pillar on which the individual calculates retirement. Must be taken into account two very important elements: the first is that the annual contributions are revalued each year based on the five-year rate of change of gross domestic product. This process should, in theory, be used to allow recovery of the decrease in purchasing power due to inflation, so each year the employee contributions are revalued on the basis of this rate of change of GDP. The second element that we must take into account is that the mast, that this amount of annual contributions, is then multiplied by the so-called transformation coefficients. These transformation coefficients transform In practice, the mast, that this total amount, into an annuity: if we think about it, the pension is an annuity that is derived from a capital that is accumulated over the years by the worker. What will happen next year from January 1, 2010, is to be introduced in the new transformation coefficients: they are real tables which set of multipliers based on the age of the person at the time she retires, which take account of life expectancy. For example, if the January 1, 2010 will retire with 59 years of age and a number of years of contributions will have a conversion ratio that is smaller compared to that of another worker who will retire with the same contribution years, but perhaps with an age of 61 years, ie the higher the age and the higher the conversion ratio, the lower is the age at which you retire, the smaller the coefficient of transformation.
What is the idea? The idea is that if life expectancy is now estimated that, for example, of 81 years and one retires at 59, is expected to enjoy retirement of the check for at least 22 years, that is 81 years of life expectancy and 59, which are the years in which he begins to retire. Who should instead retire at 61 years will only have twenty years of retirement, which is two years younger, so the transformation coefficients into account, in some way, this different life expectancy. To maintain balance in the pension system applies a principle that, the greater the number of years over which you will enjoy retirement, the smaller is the coefficient of transformation.
Periodically, say every three years, these tables will be revised in a less favorable for new retirees: As, over the years, we will have a life expectancy improves, that we will live more years, these new tables will account of this higher life expectancy, this many years of retirement and will be, in some ways less favorable to the retirees.
We must start by saying that this change, which takes place from January 1, 2010, applies only to new retirees, and those who are already retired are not affected by this reform. This new system applies in particular to those who will retire with the contributory scheme, what I just described, so those who were under 18 years of contributions December 31, 1995. Essentially applies especially to young people, those who have fewer years of contributions and to those who in future will gradually with the contribution system.
What are the issues that arise?
Some recent estimates, made in the past days, show that with these new tables processing those who will retire Jan. 1, 2010, again, with the contribution system, so older workers, who have completed forty years of contributions and retire with the pay system, but only new retirees who had less than eighteen years at December 31, 1995, these new retirees have a pension, on the basis of these new transformation coefficients will be between 0.8 and 3 , 7% less than those who, for example, will retire or be retired in November or December this year, 2009, with the same number of contribution years. These new factors change involving a reduction of net pension, which will be received by those who will retire next year.
What is the question that arises? The question that arises relates to two aspects: the first question that many have is why the re-evaluation system of contributions which I have explained before, is calculated on the basis of developments in the gross domestic product, that is because in order to take into account the risk a devaluation of the money paid is taken into account the rate of GDP growth, and we were only chosen as an indicator or index of infringement, as typically is done in order to take account of the purchasing power. In particular, Italy's GDP growth rate is very low for several years: think that in 2008 the GDP declined by 1% in 2009, this year, probably the Italian GDP will fall by 5, 4%. So tomorrow's pensioners, the youth of today who will retire in a few years to have these years, for 2008 to 2009 and perhaps also in 2010, a decrease in the value of their contributions for this year because, as I told, the appreciation of these contributions is made on the basis of the development of GDP in the five-year period, so you can even have a situation of a devaluation of these contributions. A question that arises is: Is it right, it is correct, it is permissible to use the growth rates of GDP as a way to re-evaluate the contributions paid by workers in the contributory scheme? First question.
Second question: is it sensible that this re-evaluation system is determined not only on the years from which actually introduces the contribution system but the entire post and then be applied retrospectively for previous years? Also in this respect is a fair system of calculation of this kind? This also with respect to the transformation coefficients, which is not that only apply to three years related to the introduction, but are applied to everything the riser.
There are problems in terms of equity, fair treatment for those who will retire with effect from 1 January next year with a contributory scheme. I repeat once again: we are talking about mainly young people.
That said, however, we must not hide some structural problems that affect the pension system: pension expenditure in Italy is twice that of other countries in the OECD, that of the other rich countries. In Italy the relationship between pensions and the gross domestic product is 14%, compared to 7% of the OECD average. Pensions in Italy account for a total of 30% of the budget, compared with around 16% on average across OECD countries and also in terms of contributions paid by employees, we must take into account that it is very expensive, because about 33% of gross wages to finance the end of social security contributions, the OECD average is 21%, which is much lower. This increased spending on pensions is of course the expense of other expenses that may be made: both expenditure on the social front - and we support the poorest families - and expenses such as education, research and technological innovation. If you use this large sum of money for pensions means that you can not make other investments.
Another consideration: the age of retirement in Italy is now similar to that of other countries, we are talking about 65 years for men, which is the age that is adopted in most developed countries. But if we look at the average effective age of retirement, ie the age at which Italian workers actually retire, we find a great anomaly: in Italy the average effective retirement age for men is 58 years, women is 57, then it means going into retirement well before the date theoretical, theoretical age. To get an idea of \u200b\u200bcomparison, in Germany the average effective age of retirement is 63 years, 63 against 65, that is only three years before; in Italy is 58 years compared with 65 the average male retiring seven years early. This is a problem and is a very serious, very serious and is one of the reasons why it should be addressed with courage is a measure that seeks to raise the minimum age should as soon as possible the effective retirement age. If the government had the strength and courage to raise that minimum effective, it could be considered to recalculate some of these factors we have discussed and processing to make the system somewhat fairer. We believe that in 2011 the minimum age should retire in Italy will be 60 years in 2013 to 61 years and so will away, so it will be a very slow process of adjustment in the retirement age. What is maybe we should have the courage to raise the retirement age and, thus, to release additional resources that could be used to make whole the pension system more equitable, especially to protect the younger generation, who are likely to retire with a coverage rate, and with a pension that is equal to 30 / 35% of salary if they were employed, a coverage rate which is well below the 75 / 78% of previous generations. There is a problem of equity between generations, there is a lack of courage on the part of the government to address this issue and to speak in a clear and transparent to the Italians and the young people of how things are right now.
0 comments:
Post a Comment