Is the Pension Pool a Legitimate Pension Scheme

pension ponzi scheme

The Pension Ponzi Scam is a very tricky legal issue in Italy. This article discusses the legal problems involved with a pension scheme in Italy, and how this scheme has been stopped in Italy and Italy’s role in stopping it. The term “Pension Ponzi” comes from the fact that, in the past, the Italian pension fund was financed by illegal contributions, and these illegal contributions came from high profiled business executives and their relatives. These businessmen would often purchase old government bonds from these government entities, which then they would sell at higher rates to unsuspecting investors. The bonds they purchased were given high-interest rates, and investors, in the end, would not realize any profit.

Pension Ponzi Scheme

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These pension funds, of course, we’re never legally established. Instead, they were created only for the benefit of those businessmen who had created them and later used them for personal gain. Therefore, instead of investing their profits, they used their own money and then borrowed from banks or other lending institutions in order to pay their creditors. Later on, all this borrowing money became the liability of the pension scheme, and when an investor decides to stop contributing, this pension scheme would have nothing more than worthless pieces of paper.

The Legal Dilemma:

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How the Pension Ponzi Scheme Came About – The illegal sale of pension bonds is often blamed for the creation of the Ponzi scheme. However, there are other possible causes. For example, some countries like Italy could have been in a very bad economic situation, and the government may have had no other choice but to accept the illegal transactions. Other countries like Mexico could have had similar pension fund issues, and the corruption in Mexico might have played a role in that as well.

Many attorneys, however, believe that the real perpetrator of the Ponzi scheme is the illegal owner of the pension plan itself. After all, in order for someone to create a Ponzi scheme, they would need to believe that their pensions are actually worth something. They would need to believe that future contributions will be made, and that those contributions will actually be received, and that the only way to receive them is through some illegal scheme and by using their contributions in some illegal venture. From this perspective, it would seem that the perpetrators really do have nothing to hide. Therefore, their guilty parties should be punished, and the whole system should be reformed.

The Solution:

The Italian pension scheme is now closed, and Italy is now trying to figure out how best to reform its entire pension system. Some argue that it is impossible to completely reverse the illegal practices that created the Ponzi scheme in the first place, because in the end, Italy would have to allow tax evasion. This would mean, ultimately, that wages would be taxed and therefore, a pension would not be able to be paid out to employees, and it would be up to the government to either pay those wages in some other way or force those employees to contribute to the scheme through taxes. If you think about this, I am sure that you come to the conclusion that perhaps the Italian pension scheme is just one of the too many examples of illegal, public finance activities that have permeated Europe over the last couple of decades. And hopefully, over time, European governments can sort it out and stop these kinds of schemes from ever happening again.

However, Italy is only beginning; it has yet to figure out how to reform its entire pension system and to ensure that all of its citizens can receive fair compensation when they become old. So, for the moment, let’s just look at the legal issues involved with a pension scheme, which is designed to give people who worked for a company in Italy a pension at a predetermined amount. It is important to note that such a pension scheme does not exist in the U.S., nor in most other developed countries. This is because, in the U.S., people are given 401K plans rather than pension plans.

Therefore, one might say that this is an unfair plan because you are paying out more money to the company for the retirement benefit rather than receiving a pension at all. Another legal argument would be that such a scheme would not prevent a company from going bankrupt and leaving its workers jobless. Of course, this is true. But, if the company is struggling to pay its bills, then perhaps giving your employees a pension may not be the best way to go about solving their problems.

Bottom Line

However, one would suppose that there would be some law regarding this because one cannot have a pension scheme on paper that clearly states the rules and regulations regarding such a plan. And, it is also true that such a law could very easily be changed over time. For example, the EU could change the rules so that it would be illegal for a company to pay out a pension to illegal immigrants, while at the same time, the pension scheme could be interpreted as one that is legal but is not taxed enough by European governments. It seems likely that the truth about the pension Ponzi scheme is that it is probably illegal and even perhaps already illegal in some parts of the EU. However, as long as the US government does not interfere with that, then it may end up becoming completely illegal, at least in the US.

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