UNDERSTAND IT ALL – Age, contribution period, calendar: what we know about pension reform
The government has decided and presented Tuesday its reform framework that will move two important cursors: the retirement age and the duration of contributions. Explanation.
The government unveiled the details of its pension reforms on Tuesday. While France is largely against lowering the legal age of departure, some points are yet to be decided. What to expect from this project, which is also contested by many trade unions?
• What is the philosophy of this reform?
To “save” the pay-as-you-go pension system (active people contribute through contributions deducted from their current income), reforms work at two levels in parallel: the minimum retirement age and the duration of contributions.
If the reform is chosen, in the long run, it is necessary to retire, have 43 years of contribution and at the same time be at least 64 years old. For the government based on 3 pillars: balance, justice, progress.
• How can the official retirement age be increased to 64?
The legal age will be gradually shifted to 64 years, at the rate of three more months per year.
Therefore we will achieve 64 years for those born from 1968 but reforms will apply from this year to those born from the second half of 1961 who had to work an additional three months. And so on until those born in 1968.
• How will the contribution period be extended?
The reform act actually accelerated Touraine’s 2013 reform during that time frame.
Specifically, with this new reform, those born in 1964 must contribute 43 years, or 172 quarters.
But it will also have an impact on early-born retirees:
- Those born in the second half of 1961 should have 169 quarters and not 168 as expected today.
- Those born in 1962 should have 170 quarters and not 168 as expected today.
- Those born in 1963 should have 171 quarters and not 168 as expected today.
- Etc those born in 1964 and later must contribute for 172 quarters (43 years).
Finally, remember that from the age of 67, even without this 43 annuity, a full rate departure will always be possible, as is the case today.
• What are the salient problems?
Some arbitrations have not yet been decided:
- hiring seniors: as a reminder, 56% of those over 50 are not working. They are unemployed, in RSA, self-employed or without income.
- care from the difficulty: How about additional criteria, training, medical follow-up…
- they long career: do those who started before the age of 20 have to work longer hours?
- Special diets: grandfather clause planned, only new agents no longer benefit from special regime. But agents in the post can work another two years, but in a more distant calendar, after 2024.
- Small pension: Macron’s candidate has promised a minimum pension of 85% of the minimum wage (so 1,200 euros per month today). But Republicans and majority members want to ensure that it benefits not only new retirees but current retirees as well, provided they own all of their residences.
According to our information, the Prime Minister can announce that this appointment also concerns current pensioners (without waiting for a parliamentary debate).
In the end, we don’t know what to decide yet for public service.
• What schedule?
On Monday, January 23, the bill will be presented to the Council of Ministers. The calendar will then follow fairly quickly with the goal of implementing reforms in the summer.
- From Monday 30 January: debate in committee in the National Assembly,
- From Monday 6 February: start of deputies debate in session,
- Late February, early March: passage of the text in the Senate, parliamentary shuttle,
- End of summer: text implementation (government goal)
In addition, this Tuesday, January 10, the unions meet at 7:15 pm at the Labor Exchange to set the first date for united mobilization (Monday 23 or Tuesday 24 or Thursday 26).