PENSION REFORM 2023. The Constitutional Council must render its decision this Friday, April 14 as to whether or not to adopt the pension reform as it stands. Calendar and explanations.
[Mis à jour le 11 avril 2023 à 09h46] What fate will be reserved for the pension reform by the Constitutional Council ? The Sages will speak Friday, April 14, 2023, after examination of the text and deliberation. Clearly, three options are possible to seal the outcome of this disputed reform: the validationthere partial censorshipor the total censorship. As a reminder, the text of the pension reform, if it were to come into force at the end of the summer, should lead to major changes concerning the rules of retirement. Gradual decline in the legal age to 64, significant modification of the “long career” system or even the abolition of special schemes… Here is the complete summary of the potential upheavals.
The pension reform is integrated into a future Social Security amending financing bill (PLFRSS), as announced by Prime Minister Elisabeth Borne, Thursday March 16 in the midst of an extremely excited National Assembly. The number 2 of the government then announced the use of the famous 49.3 to try to pass the text of the pension reform without resorting to a vote of the National Assembly. Mission accomplished since the two motions of censure tabled in the process failed on Monday March 20, and the pension reform bill was adopted. To try to see more clearly, here are the 9 key points to remember concerning the pension reform project:
- Raising the legal retirement age by 62 to 64 years old
- Creation of a minimum pension at 85% of minimum wage
- New device on long careers (early departure)
- Better consideration of arduousness (extension of C2P)
- Towards an abolition of certain special diets (RATP, IEG)
- Creating a “index of seniors” with sanctions in case of non-compliance
- Creation of a Senior CDI
- The age ofcancellation of the next to stay at 67 years old
- Maximum contribution period to 43 annuities
In order to ensure the survival of the pay-as-you-go pension system dear to France, the government wanted to review the retirement system. The executive relies first of all on theincreased life expectancy. We live longer, so we can work a few extra years. THE number of retirees, it is growing faster than the number of assets. And this figure is expected to increase steadily in the years to come. 16.8 million retirees in 2020, and up to 23 million in 2070. A big acceleration should be felt around 2040 with the retirement of the baby-boom generations. Problem, these are the assets that contribute to pay pensions for retirees. Hence the wish for the government to “rebalance” this pension system which requires greater funding.
While the bill on pension reform has just been adopted by the National Assembly, here is the summary of the latest events and events to come:
- March 16, 2023 : the Prime Minister resorted to 49.3 to have the text of the pension reform adopted.
- March 17, 2023 : two motions of censure have been tabled.
- March 20, 2023 : the two motions of censure are rejected and the pension reform project has been definitively adopted by the National Assembly.
- March 21, 2023 : Prime Minister Elisabeth Borne seized the Constitutional Council for an examination of the text of the pension reform.
- The members of the Constitutional Council (the Elders) will now analyze and check each article of the project to see if it is in conformity with the Constitution.
- The entry into force of the bill is envisaged by the end of 2023.
After the change from 60 to 62 in 2010 (Woerth reform), Emmanuel Macron want to switch to 64 years old with an acceleration of the contribution period, which will reach 43 years and 172 quarters. It’s here generation 1968 who will be the first to have to wait until age 64 to benefit from a full pension. Are you concerned? Here is the new legal starting age, based on your year of birth:
- Generation 1961 : 62 years and 3 months, in 2023
- Generation 1962 : 62 years and 6 months, in 2024
- Generation 1963 : 62 years and 9 months, in 2025
- Generation 1964 : 63 years old in 2026
- Generation 1965 : 63 years and 3 months, in 2027
- Generation 1966 : 63 years and 6 months, in 2028
- Generation 1967 : 63 years and 9 months, in 2029
- Generation 1968 : 64 years in 2030
The platform info-retraite.fr already allows you to carry out a simulation to try to know the new retirement age if the reform were to come into force. You should provide some information such as your age, as well as the number of quarters contributed before the age of 20 (to find out if you are one of the beneficiaries of the long career scheme).
With its pension reform, the government intends to make the long career scheme more “adapted”, and extend the long career scheme to people who started working between the ages of 20 and 21, so that they can retire at 63. . In the long career scheme of the current pension system, a person who started working before the age of 20 can retire two years in advance, while a person who entered working life before the age of 16 can benefit from an early retirement. anticipated by four years. With the pension reform, which sets the legal retirement age at 64, people who started work between the ages of 18 and 20 will be able to retire two years earlier than the new legal retirement age, ie 62. People who started working at age 17 will be able to claim retirement at age 61, etc. In detail, if you have validated at least five quarters before age 20 (with 43 years of contribution and 172 quarters), it will be possible to retire at:
- 58 years old : if you started working at 14 years old
- 59 years old : if you started working at 15 years old
- 60 years : if you started working at 16 years old
- 61 years old : if you started working at 17 years
- 62 years old : if you started working between 18 and 20 years old
- 63 years old : if you started working between 20 and 21 years old
The project is also accompanied by an impact study revealing certain inequalities between women and men. According to the report, on average, a woman will have to work 7 months longer with the reform, compared to 5 additional months for men. And up to 9 months longer for a woman born in 1972, four months longer than a man.
For more than three years, the abolition of special diets has been in the government’s small papers. Faced with the rumble of contributors to special plans, the latter has reviewed its copy. With the pension reform, he wants prohibit access to special diets for new hires in the trades concerned. In other words, the old ones will keep their special regime, but the new ones will no longer have access to it. The limit is as follows: to remain attached to his special scheme, the employee must be less than 17 years from retirement, in 2020. This is the famous “grandfather clause“. Please note that the increase in the legal retirement age should start a little later for these special schemes. The 2010 Woerth reform, which raised the legal retirement age from 60 to 62, will only be fully effective in 2024. The companies employing these employees could therefore be forced to establish a period of convergence with the other schemes.
Monday, January 30, the disappearance of special diets was acted upon in the Social Affairs Committee of the National Assembly. Those of the RATP, the electricity and gas industries and the Banque de France will disappear, the reform having been adopted. THE Paris Opera dancersTHE Dockersand the French comedy they are not affected. This special diet should not move one iota. It should be noted that in the public service, the advantageous method of calculating the retirement pension, which consists of basing it on the last six months of the career (often the best paid) against the best 25 years for the private sector, is kept.
Monday, January 23, during the Report of the Council of Ministers, the Minister of Public Service Stanislas Guerini asserted that the pension reform measures will be applied “symmetrically” to civil servants. “We have decided to keep the fundamentals of the system for civil servants”. The executive is considering the integration of progressive retirement schemes, the portability of rights associated with active categories, taking into account the end of careers of active categories or the integration of years spent as a contract worker. Finally, “a prevention fund and D’business wear dedicated to public service carers” will be created, as announced by the Minister of Labor Olivier Dussopt, Monday 23 January during the same press briefing. The amount of this fund will reach 1 billion euros.
Hardship at work is one of the government’s priorities in this 2023 pension reform. In this logic, access to C2P (prevention professional account) must be extended to new employees, more than 60,000 more per year, the government said on Tuesday. This system makes it possible to accumulate points so as to leave earlier in retirement, according to six criteria of arduousness: night work, work in alternating successive shifts, repetitive work, activities in a hyperbaric environment (under water, nuclear reactor containment), extreme temperatures or even noise.
The carrying of heavy loads, painful postures and mechanical vibrations, three criteria of hardship at work which had been abandoned in 2017, should not be reinstated as the unions would have liked. Nevertheless, the employees concerned will be offered “reinforced medical monitoring” from mid-career. On medical advice, these same employees may obtain an adaptation of their position and/or working time. They will also be able to benefit from enhanced access to retraining. In the most critical cases, an early departure from the age of 62 may finally be offered to them.