Italian lawmakers have moved to exclude first pillar pension funds for professionals – Casse di Previdenza – from supervisory oversight for the resolution of out-of-court disputes with members.
Legislation implementing Italy’s National Recovery and Resilience Plan under the EU’s Next Generation EU programme had originally brought professional pension schemes within the remit of the pension regulator, Covip, for handling member disputes outside the courts.
However, the budget committee of the Chamber of Deputies has approved an amendment removing Casse di Previdenza from the list of entities subject to Covip’s out-of-court dispute resolution framework.
The measure, approved by the Chamber of Deputies on 9 April, is now being reviewed by the senate and is expected to be converted into law by 21 April.
Adepp, the association representing first pillar pension funds for white-collar professionals, opposed the initial inclusion.
The association had suggested reconsidering the extension of supervisory powers to Casse di Previdenza, which, like the national institute for social security (INPS), “exercises a constitutional function”, said president Alberto Oliveti.
“Pension fund for professionals would rather need streamlining of the levels of control currently in place”, Oliveti said.
The legislation introduces, for the first time, an out-of-court dispute resolution mechanism for Italy’s supplementary pension system, broadly modelled on existing arbitration bodies in other sectors, including the banking and financial arbitrator (ABF) at the Bank of Italy, the financial dispute arbitrator (ACF) at securities regulator CONSOB, and the insurance arbitrator at IVASS.
The new body is intended to enable pension scheme members to resolve disputes more quickly and cost-effectively, without resorting to legal proceedings.
Healthcare funds, now brought under Covip oversight, and supplementary pension schemes – including the pan-European personal pension product (PEPP) – will fall within the scope of the new arbitration framework.
