Economy / Politics

The Italian “golden pensions”

In Italy, pensions are paid by the State, although employees are now encouraged to adhere to private retirement plans.

The amount of every pension is in proportion to the contributions paid to the State by the employee and his employer, but there are very significant exceptions.

The pensions which are calculated under old rules, which apply more or less to the contributions that you paid until the middle Nineties, are paid in proportion to the salaries earned by pensioner in the last then years before his retirement. The special pensions which are reserved for politicians follow even more generous criteria.

Technicalities? No, if the old rules and the special rules result in exorbitant pensions in the framework of a serious crisis. The Italian press discovered that Mauro Sentinelli, a former director general of the TIM telephone company, receives a monthly pension of 91.473 euro. Even more staggering is the case of Antonio Cartasegna, a in-house lawyer of the Municipality of Perugia who, after winning a lawsuit against the State, obtained a pension three times higher than his last salary: 651,000 euros a year.

More recently Nichi Vendola, the Governor of Apulia, was granted a political pension of 5,618 euros a month without having to quit his job. After all, he is just 57.

 

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