Italy: Disappointing results for scheme to boost supplementary pensions

It appears that a plan to encourage employees to transfer their severance pay entitlement into supplementary pension funds has so far not had the desired effects.

Under Italian law, employers must set aside around 8% of their employees' wages and pay the accrued amount to them as a lump-sum severance payment – the "end-of-service" allowance (Trattamento di fine rapporto, Tfr) – at the end of the employment relationship.