Automatic estabilizer on social security system: factor of sustainability and appreciation index

Abstract

Introducing our Social Security system double sustainability factor would be between reform measures nonparametric character. That is embedded in the Social Security system a mechanism for automatic adjustment of pensions, connecting them with demographic and economic risks. This measure is a first step in reshaping our pension system, transforming a system of defined benefit and ours toward a defined contribution where the pension to be paid to workers is not known in advance and will be linked to life expectancy 67 years at the time of retirement. You can then understand that this is not a reform. A drastic changes operated by the Law 27/2011, especially in the pension, was added this new phase of reform of social protection with undoubted effect on the amount of pensions and most importantly paves the way for future shift.