Abstract

Purpose – The dote system is the most recent and only way to finance and deliver services in the training and labour policy field in Lombardy (Italy), strengthening the regional quasi-market approach. The purpose of this paper is to analyse its logic and highlight the implications for the policy system. Design/methodology/approach – Qualitative case-study including preliminary documentation, analysis of administrative data, in-depth interviews with stakeholders and practitioners. Findings – The dote system is based on a strongly pre-structured and pure performance logic. It predefines forms, ways and steps towards people’s “autonomy”, further categorising the policy system and establishing a combination of individualisation without personalisation. The strict regulation makes it difficult to design accessible, high-quality and tailor-made interventions. Dote could represent an interesting innovation for high-profile measures, but as a universal equivalent it often fails to match the needs of people and the labour market. Research limitations/implications – The self-funded research is limited to a regional context, analysed against the background of European welfare transformations. Greater effort in qualitative research could improve the knowledge about the implications of NPM and quasi-markets. Practical implications – Regional centralism is strengthened; local authorities and private bodies are excluded from planning; freedom of choice is limited. A marriage of convenience between providers and users increases the level of stress and the dispersion of resources. Originality/value – Dote is a particular experiment in the panorama of activation. It works in a unique way, impacting on governance and activation modes. The paper is addressed to researchers, practitioners and policy makers interested in gaining better understanding of the implications of quasi-markets and NPM.

Highlights

  • The Occupational Pension Schemes (Scheme Administration) Regulations 1996 (“the Administration Regulations”) require the Trustees to prepare an annual statement regarding governance, which should be included in the annual report

  • The Corporate Trustee are responsible for investment governance, this includes the Corporate Trustee reviewing the default arrangement remains in the best interests of the members

  • When the Scheme was originally established the Corporate Trustee took professional advice and selected a pension scheme where the With-Profits Fund was the only available investment fund option available to members. This was originally with Friends Life, who were acquired by Aviva Life & Pensions UK Limited (Aviva) in 2015, all policies, assets and liabilities of Friends Life were transferred and completed by 1 October 2017

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Summary

Chair of Trustees Governance Statement

The Occupational Pension Schemes (Scheme Administration) Regulations 1996 (“the Administration Regulations”) require the Trustees to prepare an annual statement regarding governance, which should be included in the annual report. When the Scheme was originally established the Corporate Trustee took professional advice and selected a pension scheme where the With-Profits Fund was the only available investment fund option available to members. The Corporate Trustee monitors the level of charges borne by members through the Conventional With-Profits Fund. When assessing the charges and transaction costs which are payable by members, the Corporate Trustee is required to consider the extent to which the investment options and the benefits offered by the Scheme represent good Value for Members. - The Conventional With-Profits Fund differs from a unit linked policy in that it is not totally reliant on the current value of the underlying assets This type of fund offers an underlying guarantee that provides a cushion against falling investment markets in certain circumstances. The Corporate Trustee will be reviewing the membership profile as part of the Scheme Review to ensure that this fund continues to be suitable for the membership

Sound administration
Scheme governance
Scheme Details and Scope of Statement
Consultations Made
Investment Principles
Guaranteed Amount
Other area of risk
Choosing Investments
Investment manager structure
Fee Structure for Investment Manager
Findings
Environmental or Ethical Consideration
Full Text
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