On 23 December 2011, the Italian Parliament passed a bill which included various provisions which significantly modified the Italian pension systems. The most important changes are to (i) the method for the calculation of pension entitlements, and (ii) the retirement age for women.
Under the new pension system, the method of calculation of pension entitlements has switched from a defined-benefit system to a defined-contribution system so that pensions will now be calculated by taking into account the social security contributions paid by each worker during his/her career. In order to receive a state pension, a worker must pay at least 20 years' worth of social security contributions.
The bill also increased the retirement age for women, as of 1 January 2012, to age 62 and, as of 2018, to age 66; so from 2018, retirement ages for men and women will be equal.
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