The management of generational turnover

The new Italian legislation regarding retirement (Art. 24 of Italian Law No. 214/2011), which raised the age and years of contribution requisites necessary to gain the right to a pension, reduced the “catchment area” of potential retirees for Terna. A summary table of potential retirees in the period 2012-2017 is shown below. The total of 508 people can be broken down as follows:

People who have gained the right to a pension with the old legislation at 31.12.2011 115
of which: senior executives, junior executives and white-collar workers88
blue-collar workers27
People who will gain the right to a pension under the new legislation393
of which: senior executives, junior executives and white-collar workers228
blue-collar workers165

It should be noted that the probability of effective retirement in the five years considered is very high only for the first group of employees, for whom the reform guaranteed application of the previous requisites. On the other hand, for members of the second group, we expect more recourse to the possibility of opting to continue in employment and thus gain a higher pension. As regards expected retirements in the ten years 2012-2021, it should be remembered that the new legislation established that a mechanism related to “life expectancy” is to be periodically applied to the age requirements set out for access to the different retirement options. This is aimed at balancing pension fund management over the medium/long term. Consequently, at present it is not possible to reliably predict retirements over the decade.

Some time ago Terna began a series of initiatives to manage generational turnover. Among the most significant are:

  • the transmission of knowledge and experience, often specific exclusively to Terna, by expanding the organisation of training courses taught by in-house personnel;
  • professional orientation projects aimed at creating and transmitting technical and managerial skills enabling adequate performance of critical roles.

It should finally be considered that the entry of new, more highly-educated resources will make it possible to carry out the same activities as today more efficiently.