In 2007, workers had to decide between continuing to accrue their future indemnity allocations (Trattamento di Fine Rapporto or TFR) with their employer, or to transfer future TFR accruals to an outside pension plan, and explicitly notify their employers of this choice. They have been required to keep their TFR in the plan they chose for a minimum period of two years. As of July 1, 2009, that two-year period has ended for those who enrolled within the 2007 deadline, and workers are free to switch pension plans.
The main particulars of this shift are as follows:
In January 2007, second-pillar reform regulations were passed that allowed employers to set up company supplementary plans in addition to industry-wide pension plans for their employees. Employees who failed to make the decision of which fund to enroll in by the June 30, 2007 deadline, or after six months from their date of hire, were automatically enrolled in either the industry-wide pension fund or the company-sponsored fund. Where neither the industry-wide fund (for instance, in the credit sector) nor the company-sponsored fund existed, a new pay-as-you-go fund was set up by the National Social Security Institute.