The outlook for a funded pension
system in Italy suffered a setback
following a delay to the
approval of the reform of the
so-called Tfr system.
The reform aimed to put the Tfr,
an end-of-career indemnity, into
pension funds. It has been estimated
that this would boost the
funded system by billions of euros.
The government’s press service
AGI has reported that only three
cabinet ministers, from the Northern
League, backed the reform –
which means that the measure will
have to go back to parliament.
Prime Minister Silvio Berlusconi
did not vote.
Labour minister Roberto Maroni
was quoted in the media as saying
that the government has decided to
send the proposal back to parliament
as the move was “damaging,
unjustified and counterproductive”.
Asset manager association
Assogestioni reckons Tfr funds,
which are currently kept by firms
and paid out as lump sums when
staff leave, are worth more than