Italy: Pension Proposals of Berlusconi Government

Proposals by the Italy's former Prodi-led government to phase in an increase in retirement ages and number of pensionable years held from 57 to 60 in 2010 will not be scrapped, although Maurizio Sacconi, Italian welfare minister, described it "an onerous mistake" of the previous government. According to news reports, "Sacconi wants to start using the new 'coefficients' or ratios through which pensions will be calculated as a function of contributions, from as early as this autumn, rather than the 2010 date set by Prodi's government."

In addition, Sacconi wants to narrow significantly the definition of "fatiguing" jobs or manual labor employment which officials believe allow people to retire at an earlier age. He also is encouraging greater attention to private pensions and has proposed setting up a European commission on pensions, with the specific objective of identifying a general strategy, capable of promoting development and re-direct towards patterns of growth.

Sources: IPE.com "New Italian government alters pension plans" (June 11, 2008); AGI News "Pensions--Sacconi: Right To Set Up A European Comparison" (June 7, 2008)

Survey: Talent Gap Widens as Workforce Ages in G7 Countries

According to a study conducted by Towers-Perrin on behalf of AARP, as the number of workers reaching traditional retirement years increase in the G7 countries, the marketplace is experiencing a decline in the number of skilled younger workers available to fill in the ranks of those retiring. Thus, suggests AARP, employers must end age discrimination in the workplace if countries and employers are to be best positioned to thrive in the global economy tomorrow.

The study--International Profit from Experience--was released in advance of a conference on the same sponsored by AARP, in partnership with the European Commission, the Business Council for the United Nations and Nikkei. Among the survey's key findings:

• Age discrimination is the single largest barrier for those 50+ who want to continue working past their anticipated retirement age, with at least 60% of employees 50+ in each G7 country viewing age discrimination as the primary barrier to securing new jobs;
• Older workers in the G7 countries want to continue to work on average an additional 5 years;
• Surges of immigration and productivity that might offset the anticipated decline in skilled workers are unlikely to occur; and
• Allowing employees to continue working past their traditional retirement age will not only allow older workers to remain in their careers and stay active, but will have a positive impact on an employer’s bottom line.

Line Vreven, Director of AARP International, says that “While the survey clearly identifies the talent gaps emerging within G7 countries, the responses by employers do not sufficiently address this challenge.” In addition, those "nations working to actively retain older workers and are providing incentives, rather than deterrents, to their continued employment, will reap economic gain in the long-run.”

An executive summary of the full 124-page report is also available.

Source: AARP Press Release (September 25, 2007)

Survey: Few Employers Are Taking Action to Recruit and Retain Older Workers; Manpower Offers Up Recommendations

According to a survey conducted for Manpower Inc. of more than 28,000 employers across 25 countries and territories, only 14% of employers worldwide have strategies in place to recruit older workers and only 21% have implemented retention strategies to keep them participating in the workforce.

The published results of the survey-- Older Worker Recruiting & Retention Survey--break down recruitment and retention by country and industry. Among different countries, employers in Japan and Singapore were far ahead of their international counterparts with 83% and 53% of employers surveyed, respectively, working proactively to retain their older employees; at the other extreme, in Italy and Spain, only 6% of employers had such strategies in place.

"Many employers have not yet recognized the need to forecast the percentage of their workforce that is set to retire in the next five to 10 years and planned ahead to stem the potential loss of productivity and intellectual capital that will occur when those people walk out the door," said Jeffrey A. Joerres, Chairman and CEO of Manpower Inc. "A surprisingly large number of organizations are still viewing upcoming retirements as cost- savings opportunities, but this is a dangerous and shortsighted view, as older adults will be relied upon as one of the most important sources of talent for the future workforce."

Simultaneously with the survey results, Manpower issued a white paper--"The New Agenda for an Older Workforce"--which explores the increasing reality of the global aging workforce, the resulting gaps in workforce supply, and the demand that this is creating. Among other things, the white paper proposes strategies that companies can adopt to circumvent these talent challenges; recommendations on how employers can help older employees extend their careers should they choose to do so; and suggestions for the role that governments can play to help solve the older worker conundrum.

Source: Manpower Inc. News Release (April 23, 2007)

Italy: Prodi Government Proposes Raising Retirement Age, Other Pension Reforms

According to a report from La Republica, Italy's Prime Minister Romano Prodi plans to discuss pension reforms with unions immediately after being re-instated by parliament, including a proposal to increase the retirement age from from 57 to 58 on January 1, 2008, after 35 years of pension contributions. The retirement age would then gradually be increased, it said.

Source: AFX News Limited "Italy govt to discuss pension reform with unions after confidence vote - report" (February 26, 2007); La Republica "In pensione a 58 anni dal 2008
il governo scrive la sua riforma" (February 26, 2007)