The Retirement Funds are instruments belonging to the private pension system that the Italian legal system recognizes in order to guarantee workers a supplementary pension to that paid, pursuant to the law, by social security institutions and which constitutes the social security first pillar.
Pension Funds represent the second pillar pension and can be of two types:
- Closed Pension Funds: regulated by collective agreements, usually between the company and trade unions;
- Open Pension Funds: managed by financial intermediaries (Banks; Insurance Companies; Savings Management Companies).
The Pension Funds, unlike the compulsory pension, are based on the capitalization system and the contribution is made through severance pay and payments made by the worker and by the company during the working activity.
Pension funds entered the Italian pension system with Legislative Decree no. 124/1993 updated by Law no. 335/1995 (Dini reform).
To learn more about this topic, read the guides:
Pension funds: what they are, what they are for, all types
Open pension funds: how they work and how to join
Fondo Cometa: how it works and how to join, advantages and disadvantages
Supplementary pension: the list of closed pension funds
Supplementary pension: the list of open pension funds
