ANNUAL CONTRIBUTIONS OF PERSONS INSURED IN THE NATIONAL OLD-AGE AND INVALIDITY INSURANCE INSTITUTION, 1900 TO 1903. [Source: Bollettino di Notizie sul Credito e sulla Previdenza, 1905.]

The table shows a very rapid increase of the number of persons who made no contributions during the year. In 1900 they amounted to only 2.1 per cent, in 1901 to 6.4 per cent, in 1902 to 11.9 per cent, and in 1903 to 28.5 per cent. Thus in 1903 nearly three-tenths of the members were not paying their contributions. The total number of persons insured as stated in the preceding table must be considered in the light of these data.

It is true that a number of persons failing to contribute anything during one year may do so during the next year. Of the persons making some contribution during the year 1903 nearly half contributed 6 lire ($1.16), which entitles them to the subsidy. The number of persons contributing that amount in 1900 was 42.7 per cent of the total; and in 1903, 31.4 per cent of the total number, or about 44 per cent of those who contributed anything during that year.

The very large number of persons contributing less than 6 lire ($1.16) in 1902, and nothing in 1903, is explained in the official report as a result of the fact that in consequence of a very active propaganda a large number of workmen insured themselves in the institution, who soon found it difficult to keep up the contributions and gradually dropped out.

Of the finances of the old-age and invalidity insurance institution unfortunately very little information is available. The assets and liabilities of the institution for 1899 to 1909 are shown in the tables following. The deposits and other revenues of the institution are distributed among numerous funds, as is prescribed by the laws and regulations governing it. These funds are shown in detail in the next table.

(1) The endowment fund, representing a source of financial strength and future revenues for the institution, grows very rapidly, both by special revenues and by assignments from the ordinary revenues, as prescribed in the law. But with the increase of deposits the proportion of the endowment funds to the total is gradually declining.

(2) The invalidity fund, representing the amounts to be used in subsequent grants of invalidity pensions and

(3) The special reserve fund for protection of the two funds above mentioned have been described above.

(4) The mutual benefit societies' fund represents amounts specially designated for bonuses to be added to pensions of persons insured under the collective insurance contract.

(5) Similarly, the special fund for "brief period" insurance is intended to provide means for payment of bonuses to pensions of members of mutual benefit societies who have been insured less than 10 years when reaching the pension age.

(6) Special grants in favor of certain groups of depositors, when so designated, must be kept in a special account according to the regulations.

(7) The pension fund represents the actuarial value of current pensions which have matured or have been purchased outright (as in the case of compensation for permanent injuries).

(8) The indemnity deposit fund represents the deposits of compensation made in case of injuries likely to remain permanent; these deposits are held in trust by the National Old-Age and Invalidity Insurance Institution for two years, according to the accident insurance law, until the final adjudication of the claim.

(9) The depositors' fund is the most important of all. It contains the actual payments made either by insured persons or for them, and the benefits annually contributed by the institution out of its revenues. (10) Popular old-age insurance which is done by the institution. (since 1905 on an independent rate and without participation in any of the benefits granted to workmen) is kept in a separate account. While the operations under this plan are as yet very small, they show a perceptible growth and indicate the advantages of the low rates offered by the institution.

(11) The provident fund for the employees of the central office represents the results of accumulations of small gratuities given annually by the administration in favor of these employees.

(12) The last fund represents the difference between the general cr ordinary revenues of the institution and its expenses. The ordinary revenues do not include those revenues which in virtue of the law

must be turned into the endowment fund, nor the deposits made by or for the insured directly.

All expenditures, exclusive of pension payments, are met out of these revenues, and the surplus is redistributed among the other funds. In this table the amount in this fund on December 31 of each year is shown, the distributing usually taking place at the end of March. Unfortunately, data concerning the annual receipts and expenditures and the distribution of this surplus are not available later than 1902. As appears from the report for that year, the 2,698,997 lire ($520,906.42) available for distribution at the end of that year were assigned as follows: 304,485 lire ($58,765.61), or 11.3 per cent, to the endowment fund; 392,285 lire ($75,711), or 14.5 per cent, to the invalidity fund; 98,071 lire ($18,927.70), or 3.6 per cent, to the special reserve fund; 458,000 lire ($88,394), or 17 per cent, to the fund of brief period insurance; 55,800 lire ($10,769.40), or 2.1 per cent, to the special mutual benefit societies' fund; 900,000 lire ($173,700), or 33.3 percent, for distribution of the regular subsidies of 10 lire ($1.93), among the individual accounts; and the remainder, 490,356 lire ($94,638.71), or 18.2 per cent, was carried over into the next year's accounts.

AMOUNTS IN THE VARIOUS FUNDS OF THE OLD-AGE AND INVALIDITY INSURANCE INSTITUTION, 1899 TO 1908.

[Source: Bollettino dell' Ufficio del Lavoro Vol. XIII, May, 1910.]

As is required by the law and regulations, the largest part of the assets is invested in interest-bearing securities held by the Bank of Deposits and Loans. In 1908 nearly 80 per cent of the total assets were so invested. The amounts invested as loans to Provinces and communes since 1903, in virtue of the act of 1902, are insignificant; though the revised act permitted investment in real estate, this form of investment has not shown any increase.

ASSETS OF THE NATIONAL OLD-AGE INSURANCE INSTITUTION.

COMPULSORY OLD-AGE INSURANCE FOR CERTAIN STATE EMPLOYEES.

The Italian Government has at various times granted old-age and superannuation pensions to various groups of its employees. It is impossible here to enter into a discussion of these civil-service pension laws. But the general tendency to incorporate these pension schemes into the National Old-Age and Invalidity Insurance Institution deserves to be emphasized, at least as far as the industrial employees of the Government are concerned.

Perhaps the best example of this tendency is found in connection. with the employees of the government tobacco monopoly.

TOBACCO MONOPOLY.

On November 23, 1886, a bill for the establishment of a pension fund for the employees in the tobacco industry was introduced, but it did not come up for discussion. A similar fate befell the later effort of November 19, 1887. While both these efforts failed, the administration was forced to begin the payment of regular benefits to disabled and superannuated employees. In the beginning such informal benefits were paid only to employees working for time wages, but since 1892 these benefits were extended to workers for piece wages. From 1892 to 1899 the minimum annual pension for a workman was 120 lire ($23.16), in 1899 it was increased to 180 lire ($34.74), in 1901 to 216 lire ($41.69), and in 1902 to 240 lire ($46.32).

The maximum in 1897 was placed at 240 lire ($46.32), in 1899 increased to 360 lire ($69.48), and in 1902 it was abolished. According to the rules adopted in 1892, inability to work did not give the right to a pension unless the applicant had reached the age of 60; in 1894 the conditions were modified so that 35 years of service were sufficient, without regard to the age at the time of applying for a pension; and in 1899 the limit was reduced to 25 years of service.

The following table gives an indication of the rapid development of these benefits during the period 1894 to 1903, the average number of employees being about 15,000:

NUMBER OF BENEFICIARIES AND AMOUNT OF BENEFITS PAID TO EMPLOYEES OF THE TOBACCO MONOPOLY, 1894 TO 1903, BY YEARS. [Source: Bollettino di Notizie sul Credito e sulla Previdenza, 1994.]

On September 29, 1899, immediately before the beginning of the operations of the old-age insurance institution, Minister Carmine ruled that no person could be accepted as a permanent employee of the tobacco industry who would not be insured in the national old-age insurance institution. The contributions to be deducted from their earnings and paid by the administration of the industry were 1 lira (19 cents) per month from the wages of females and 2 lire (39 cents) per month from the wages of the males. To this contribution the administration of the industry added an equal amount. Thus the system of gratuitous old-age pensions was abolished in 1899 except for persons already employed. Considerable difference in the treatment of the old and new employees arose. Those employed on or before September 30, 1899, were entitled to a pension after 25 years of service. This pension was determined. by the average annual salary for the last five years of service and amounted to of the average salary when the service was less than 30 years, when the length of service was 30 but less than 35 years, if 35 years but less than 45 years, if 45 years but less than 50 years, and if 50 years or over. In all cases, however, the pension

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