1. The Social Security in Italy Project Communicate October 2006

2. Law Social Security “1st pillar” Basic pension is covered by D.L. 503/1992 and L. 335/1995

3. Financial structure Pay as you go

4. Social security contribution Total percentage: 32,70% Of which: For employers 23,81% For employees 8,89% Of which: For social security benefits For assistance benefits

5. The Income Tax on the annual salary From 0 to 26.000 23% From 26.001 to 33.500 33% From 33.501 to 100.000 39% Over 100.001 43%

6. The impact Income Tax on the annual salary: EXAMPLE: ANNUAL SALARY 40.000 (23% TILL 26.000 = 5.980 + FROM 26.001 TO 33.500 (33%)=2.475 + FROM 33.501 TO 40.000 (39%)=2.535 Total=10.990 (average 27,47%)

7. Typology of Benefits Life annuities

8. Form of pension provided for 1. OLD AGE F 60 – M 65 2. SENIORITY AGE F and M 57 years old (from 01/01/08 60 years old) and 35 contribution years (years of job); Or, 39 contribution years (from 01/01/08 40 contribution years)

9. Form of pension provided for 3. SURVIVORS’BENEFITS 4. DISABILITY

10. The substitution rate The ratio between pension and the last salary is 80%

11. Pension adjustment Indexation to inflation or cost of living

12. State Pension expenditure 13,5% of GDP in 2001 it will rise to 15,7% in 2040 if no further reforms are taken

13. SUPPLEMENTARY FUNDS (2 nd Pillar) THE 98,3% OF THE ITALIAN BANKS (2004) HAVE SUPPLEMENTARY FUNDS ARRANGEMENTS

14. SUPPLEMENTARY FUNDS ARE: OPTIONAL COMPANY FUNDS

15. TIPOLOGY OF FUNDS PENSION FUNDS

16. SOURCES OF SUPPLEMENTARY FUNDS COLLECTIVE AGREEMENTS (NATIONAL LEVEL & COMPANY LEVEL) COMPANY REGULATIONS

17. FINANCIAL SYSTEM DEFINED CONTRIBUTION FUNDED

18. FINANCIAL SYSTEM CONTRIBUTION: TOTAL PERCENTAGE 4% FOR THE EMPLOYERS 2% FOR THE EMPLOYEES 2%

19. FORM OF PENSION PROVIDED FOR OLD AGE: 1. AGE 2. CONTRIBUTION 3. DISABILITY 4. SURVIVOR’S BENEFITS 5. ILLNESS 6. LABOUR ACCIDENTS

20. BENEFITS MIXED WHEN YOU RETIRED EXEMPTION OF CONTRIBUTIONS AND TAXATION OF INCOMES AND BENEFITS (2% Employer 2% Employee) In case of TERMINATION of the EMPLOYMENT RELATIONSHIP the WORKER can REDEEM HIS PENSION ENTITLEMENT or transfer HIS position TO ANOTHER FUND

21. MAIN PROVIDERS Fund asset management is entrusted to qualified financial intermediares: savings, management companies, banks, stock brockerage companies and insurance companies

22. Federazione Autonoma Bancari Italiani International & Projects Department “Communicate Project” October 2006