PENSION REFORM. The pension reform project could come into force before the end of summer 2023. Minimum pension, hardship at work… The complete summary.
[Mis à jour le 18 janvier 2022 à 08h04] The pension reform project “was done in consultation” affirmed Prime Minister Elisabeth Borne, Tuesday January 17 during the eventful session of questions to the government in the National Assembly. In reference to the meeting of the political leaders of the different parties. As a reminder, the executive envisages, in this new reform, the postponement of the legal retirement age from 62 to 64 years, accompanied by the extension of the contribution period to 43 years in 2027 (172 quarters) . The increase in the minimum pension, better consideration of hardship at work and the abolition of many special schemes are also part of the project. All the details in our dedicated file:
Pension reform should indeed be integrated into a future bill on the amending financing of Social Security (PLFRSS). An asset for the government, which should thus be able to benefit from a use of 49.3 unlimited as is the norm in texts relating to the budget. Normally, this famous 49.3 can only be used once per parliamentary session. With such a device, the government will have the possibility of drawing the famous 49.3 on the various points of friction, from the postponement of the legal retirement age to the arduousness, through long careers, even if, a priori , he shouldn’t need to, with the Republicans looking quite willing to cooperate. here are the 8 points to remember concerning this new pension reform:
- Increase in the legal retirement age from 62 to 64 years old
- lengthening of the contribution period at 43
- Creation of a minimum pension at 85% of minimum wage : nearly 1,200 euros
- 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“in the interests of professional equality
- The age ofcancellation of the next to stay at 67 years old
After the transition from 60 to 62 in 2010 (Woerth reform), Emmanuel Macron wishes to move 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 “long career” system already allows those who started working young to retire earlier. According to government announcements during the presentation of the pension reform on Tuesday, January 10, those who have had a long career will still be able to retire before age 64. In detail, if you have validated at least five quarters before age 20 (with 44 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
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. It plans to prohibit access to special schemes 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.
With the 2023 pension reform, policyholders linked to a special scheme will retain their benefits, for the vast majority if they were born before January 1, 1975. For employees of the RATP, SNCF, Bank of France, IEG and the state workersbefore the January 1, 1980. For the miners and drillersbefore the January 1, 1982. The Paris Opera dancersthem Dockersand the French comedy them will not be impacted. 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, should be kept. .
Thing promised, thing due? Emmanuel Macron had made it one of his campaign promises. From September 1, 2023, the minimum pension will indeed increase, according to government announcements this Tuesday, January 10, to around 1,200 euros per month for new retirees, i.e. 85% of the pension. minimum wage. To be able to respect this principle, the minimum pension will now be indexed to the minimum wage and no longer to inflation. Employees, craftsmen-traders and farmers will be concerned. What about people who are already retired? Will they see their pension increase? The government has, on this point, referred to new consultations with the unions and the political groups.
Hardship at work is one of the government’s priorities in this 2023 pension reform. In this logic, access to C2P (prevention professional account) should 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.
In view of the government’s announcements on January 10, the carrying of heavy loads, painful postures and mechanical vibrations, three criteria of hardship at work which had been abandoned in 2017, were finally not reinstated as the unions. Nevertheless, the employees concerned will be offered “reinforced medical monitoring” from mid-career, it was reported. 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.