PENSION REFORM. The review of Article 7 to gradually raise the legal retirement age from 62 to 64 has begun in the Senate.
[Mis à jour le 8 mars 2023 à 09h07] On Tuesday, March 7, the Senate began examining the long-awaited article 7 of the pension reform, providing for the raising the legal age starting from 62 to 64 years old. No less than 1,327 amendments were tabled on this one and only article. As a reminder, in recent days, the elected representatives of the Luxembourg Palace have voted in favor of several amendments. First, on Saturday, for the abolition of special diets the RATP, the electricity and gas industries, the Banque de France and notary clerks and employees. On Sunday, the latter also validated theindex of seniors, supposed to sanction companies with more than 300 employees who do not advertise the recruitment of employees over 55 years of age. Finally, on Monday March 6, the creation of a Senior CDI for people aged at least 60 was also voted. It will make it possible to reduce employer contributions to encourage employers to retain or hire profiles close to retirement age. End of debates Senate : THE Sunday March 12 at midnight.
The 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 unlimited recourse to 49.3 as is the norm in the texts concerning the budget. To try to see more clearly, here are the 8 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 penalties in case of non-compliance
- Creation of a Senior CDI
- The age ofcancellation of the next to stay at 67 years old
The government wants to implement this new 2023 pension reform to ensure the survival of the pay-as-you-go pension system dear to France. 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.
The pension reform project has followed a very specific legislative path since the official announcement of January 10, 2023. In all likelihood, the text will be integrated into a future Social Security amending financing bill (PLFRSS). Here are the key dates to remember:
- January 23, 2023 : presentation in the Council of Ministers
- February 6, 2023 : examination at the National Assembly
- March 2, 2023 : examination in the Senate
- March 26, 2023 : end of discussions in the Senate
- September 1, 2023 : entry into force of the reform?
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
“We are going to take better account of long careers, by maintaining a certain number of devices, such as the system of early departures”, explained the Minister of Labor Olivier Dussopt, Monday January 23 during the report of the Council of Ministers. With its pension reform, the government intends to make the system of long careers more “adapted”, as indicated by Prime Minister Elisabeth Borne in an interview with the Sunday newspaper published on Saturday 4 February. The minister also announced, during this interview, that the long career system will be extended to people who started working between the ages of 20 and 21, and that they “will thus be able to leave 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. A return to the postponement of the legal age would amount to “renouncing the financial balance of the system” declared the Minister of Labor Olivier Dussopt. On Wednesday January 25, during questions to the government from the Senate, the minister defended the text tooth and nail: “the reform that we are carrying out provides protections for women, you have trouble hearing it. The fact of upgrading the minimum The basic contributory scheme makes it possible to target the most vulnerable. This is our priority.”
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.
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 therefore cease if the reform comes into force. THE Paris Opera dancersTHE 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. .
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.
40,000. This is the number of retirees who should be able to hope, according to the Minister of Labor on February 15, to receive a “minimum pension” of 85% of the minimum wageor a little less than 1,200 euros if the pension reform were to come into force in the summer of 2023. In the end, it will be rather “between 10,000 and 20,000 people”, corrected Olivier Dussopt in a letter sent to the deputy of the Socialist Party Jérôme Guedj. Mail that he did not fail to publish on Twitter. A new cold shower when the very first declarations of the government during the presentation of the reform on January 10 last clearly stated that all retirees would be concerned.
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.
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.