ENEPRI Research Reports publish the original research results of projects undertaken in the context of an ENEPRI project. This paper was prepared as part of the Adequacy of Old-Age Income Maintenance in the EU (AIM) project-which has received financing from the European Commission under the 6 th Research Framework Programme (contract no. SP21-CT-2005-513748). The views expressed are attributable only to the author and not to any institution with which she is associated. Abstract Many countries

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... ave recently enacted radical reforms to their pension systems to recover long-term financial sustainability. One measure has been to introduce an actuarially fair pension rule. A system that grants actuarially fair benefits is not only fair across individuals and generations, i.e. it grants equality of treatment, but is also sustainable in the long run. In this paper, we take Italy as a case study and use a microsimulation model-an instrument able to monitor actuarial fairness of the pension rules in a less conventional approach-to analyse the phasing-in of the reforms and their ability to recover the long-term sustainability of the system.