Abstract

The note is a comment on the recent pension reform in Italy passed by the Dini Government in 1995. The promise (which was made by the trade unions) to renounce real indexing of pensions appears to be a "sham" used in order to make the first yearly pension payment more generous, but which will be sociallly impossible to maintain. Equalization will be necessary and will unhinge once again the financial balance of the system because the rate of return will be pushed beyond the rate of growth of overall wages and the golden rule will be violated. As well, the individual rate of return will again be diversified by favouring those working people whose retirement period might be longer (in terms of the working period) and/or characterized by more frequent or more generous adjustments.