Italy's plan for 1.1m school staff
Pension regulator Covip, Commissione di Vigilanza sui Fondi Pensione has given the go-ahead to the first government-backed pension scheme aimed at public employees, Fondo Scuola Espero.
Espero is targetting the 1.1m school staff and teachers, which represents, according to Covip, 33.47% of public employees.
The state is to pay E2.58 for each potential member of staff towards expenses for the start-up costs and the same amount is required of members as a joining – fee.
Public employees have been so far barred from schemes because their end of career indemnity. Trattamento di Fine Servizio(TFS) is not legally the same as other employees’ ‘Trattamento di Fine Lavoro (TFR), the main component of the second-pillar.
But employees hired by December 31 2000 who wish to join can have their TFS converted into a TFR. The state would pay 2% of it in the fund and would also give an ‘extra’ 1.5% contribution, a consultant of the fund told IPE.
These employees would pay 1% of their salary in the fund and the state as their employer would pay the same amount. Those hired from January 1 2001 get a ‘virtual’ TFR indemnity and are required to pay the whole indemnity in the fund, as well as the 1% quota.
To secure a quick response, the state will pay an extra 1% cash into the annual contributions for those who join straight away. The extra contribution would drop to 0.5 for those who join the next year.
Next year, the new board could put out a request for tenders to manage the resources gained from subscription fees and the state’s e2.58 per member contribution.
The TFR contributions and the extra 1.5% one will be managed by INPDAP, the Istituto Nazionale di Previdenza per i Dipendenti dell’Amministrazione Pubblica.