Eighth Report on the Italian Pension System "Pension and Welfare Financial and Population Trends in 2019"
The Report about the Italian Pension System, now in its Eighth edition, is the ideal follow up of the publications created by the Pension Expenditure Evaluation Unit (NUSVAP), which was set up under Act n. 335/95 and then wound up in June 2012. The aim of this Paper is to provide a very broad overview of the complex pension system in Italy and a reclassification of pension expenditure within the national accounts in one single document.
On the basis of the accounts provided by Social Security organizations, this Report illustrates pension expenditure and contribution revenue trends and the balance of the compulsory public and private pension schemes in Italy. The observation period begins in 1989, the first year to allow for a comparative analysis on the basis of homogeneous time series. The retrospective analysis is up to 2019, the last year for which there are available and complete data on the financial statements of the entities that make up the Italian system. This Report uses ad hoc indicators to describe and evaluate the trends of all mandatory pension funds: the public schemes integrated into INPS, the only public pension institution and the privatized professional pension schemes under Legislative Decrees n. 509 del 1994 and n.103 del 1996.
Their performance is evaluated on the basis of the main variables in terms of number of active members, number of pensioners, average contributions, average benefits and demographic and economic ratios which determine current account balances and medium and long term outcomes. The analysis of the results of the individual schemes is also preceded by a general evaluation of expenditure trends of the compulsory pension system over a time period of 31 years. As a result, the Report is able to highlight short, medium and long term trends also in terms of financial sustainability, total expenditure/GDP ratio and adequacy of benefits.
Finally, the Report analyses the performance of the Welfare Benefit Scheme (GIAS) and of the Temporary Benefit Scheme (GPT) for the income support benefits funded by the production sector and by general taxes, of the accounting data of INAIL and of Health Expenditure. It also features a particular insight in active and passive support measures for workers provided through solidarity, inter-professional and bilateral funds. In conclusion, the Report provides a detailed analysis of the privatized pension funds, a qualitative and quantitative picture of the complementary and supplementary welfare measures and a general overview of the main regulatory changes and innovations up to 2020/2021.
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