Severance pay: voluntary or forced investment?

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As you may or may not know, Italy is debating on the new laws that push to invest severance pay benefit on pension funds. In fact, a percentage (7.41%) of salary is earmarked by the employer for the severance pay fund, and the worker receive it when he retire or when he leaves the company. I’m not getting in-depth into details, since it’s a quite complex subject, but there’s a consideration to make about Italy.

It quite surprise me that two opposite rumors can spread at the same time: on one side, some members of the Government seem to suggest that it should be possible to change your mind after accepted to invest the severance pay in a pension fund, on the other side other memebers that investment in pension fund should be compulsory.

It looks like something doesn’t square…

Italian translation of this post: TFR: Investimento libero o forzato?

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