Posted Dec 13 2022 at 18:11Updated 15 Dec. 2022 at 20:09
Postponed from autumn to mid-December to allow a cycle of discussions with the social partners and political forces, the presentation of the pension reform, the keystone of Emmanuel Macron’s presidential program, will finally take place on January 10. 2023. History of stepping over the end of the year celebrations.
The outline of the project has not changed since the re-election of the Head of State, determined to increase the legal retirement age from 62 to 64, or even 65. “It’s the only lever we have,” says Emmanuel Macron, who has ruled out from the start increasing contributions or reducing pensions. This reform is « indispensable »he believes.
“This reform has a double objective”, summarizes Olivier Dussopt, the Minister of Labor, in charge of the file. The first being “toensure the balance of a “structurally deficit” system, which should plunge back into the red in 2023 and post up to 15 billion euros in losses in 2030 if nothing is done to remedy it. The second “ofimprove the system ”, via “the level of small pensions”, the “prevention of professional wear and tear” and the taking into account of “long careers”. This implies “funding new rights” for “employees and future retirees”.
” We’re going […] propose to work longer but not all at once, not for everyone, and taking into account long careers and difficult jobs”, tried to reassure the minister, on December 15. “Our goal is to find the fairest path, that’s why we are open and we are examining different scenarios,” he insisted, referring to the continuation of discussions with unions and employers.
But once the reform has been unveiled, the executive wants go fast. The bill should be adopted by the Council of Ministers on January 18 or 25, 2023, for a subsequent examination in Parliament. The track of a new budgetary text is even envisaged to speed up the deadlines while using the weapon of 49.3 at will. The reform could in this way enter in force from summer 2023with an initial decline of three or four months for the pioneers of the “1961 generation”.
Too fast, too strong, believe trade unions, which for the first time in twelve years and the Woerth reform (which had raised the legal age from 60 to 62) are ready to mobilize together, including the CFDT. The political opponents to Emmanuel Macron also say they are already ready for a fierce fight. As to French, their hostility to reform is still strong. The government struggles to explain it and therefore to convince.
Overview of the main measures in preparation, with links to the decryptions of the specialists of the “Echos”:
Shift the legal retirement age
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The government has not yet decided on the formula used to raise the average retirement age, explained Olivier Dussopt on December 15.
The track of a postponement of the legal age to 65 in 2031, Emmanuel Macron’s campaign promise, remains privileged. But it is possible to imagine a shift in the legal age to 64 and an acceleration of the 2014 reform (known as Touraine) which provides for an increase in the contribution period to obtain a full pension. The government will not go beyond the 43 years required to receive a full pension as provided for by the previous reform. But the implementation could be three times faster.
In any case, the government would not consider increasing the age for cancellation of the discount, which is 67 years old.
Establish a minimum pension of 1,200 euros
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The executive wants to establish a minimum pension for all retirees claiming a full career. Ultimately, this minimum should represent at least 85% of the minimum wage, i.e. 1,200 euros in 2023 when the reform comes into force. During his presidential campaign, Emmanuel Macron had promised this revaluation for new retirees but also those who are already retired. But the revaluation of the “stock” of small pensions should ultimately be ruled out. It is not so simple to implement and its cost, estimated at around 2 billion euros, is also a deterrent, defends the executive.
Better take into account the arduousness
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The hardship of certain trades would be better taken into account. But the contours of the device remain unclear.
The executive plans to create a right to retraining leave for employees benefiting from a professional prevention account (C2P). He also wants to make it easier to acquire points on the C2P, by lowering several thresholds, in particular for night work, by removing ceilings and by increasing the points acquired for people exposed to several risks. It would be a question of better measuring the difficulty of carrying heavy loads, painful postures and mechanical vibrations, three criteria which had been withdrawn in 2017 from the C2P due to their complexity.
The government also wants to create a professional wear and tear prevention fund for trades identified as difficult. This fund would be supplemented by Social Security, via its branch accidents at work and occupational diseases (AT / MP), surplus, to finance “training and prevention plans”.
The executive intends to facilitate access to retirement for permanent disability and will not increase the retirement age of people with disabilities or incapacity, workers exposed to asbestos or with disabilities, already mentioned Olivier Dussopt. The government also intends to pay particular attention to professional wear and tear in the care professions, he said.
Long or even “very long” careers
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The government intends to adapt the “long career” system offering early retirement to those who started working early and who have contributed enough. A new system for “very long careers” would be created. Those who started before the age of 20 could leave four years before the legal age (against two today). Provided they have worked 10 quarters before the end of their 20 years (compared to 4 or 5 quarters for current long careers).
Another option would be to offer a four-year early departure to those who have contributed 5 quarters before the end of their 18 years.
The government could also abandon its plan to tighten the screw by no longer taking into account “summer jobs” in the calculation of quarters.
The end of special diets
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The government intends to abolish the so-called “special” schemes created before Social Security and which allow beneficiaries to retire before the legal age, such as that of the RATP and the Electric and Gas Industries (IEG).
As with the 2018 SNCF reform, the so-called “grandfather” clause would be preferred. This means that the benefits associated with these plans will be removed only for new hires. Current affiliates could continue to retire earlier, but they would see a shift in their retirement age, just like other workers.
The scheme for fishermen or even that of the Paris Opera would be maintained, due to the arduous nature of the professions they cover.
What about active categories
Adil Benayache/SIPA
Civil servants who occupy a job presenting a particular risk or exceptional fatigue allowing them to leave five to ten years before the legal age – the “active categories” – would retain a right to early departure but the retirement age would be shifted to the same title than that of the other assets.
However, the question arises of the length of service in the active category necessary to benefit from the associated advantages. For example, it is currently 17 years for caregivers and 27 years for prison guards.
Boost the employment of seniors
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The government wants to create a “seniors index” modeled on the professional gender equality index, in order to measure companies’ efforts in recruiting, training and employing seniors.
The professional branches would be responsible for opening negotiations to decide on the methods of setting up this index sector by sector. It should not be accompanied by penalties, but the Minister of Labor says he is considering a penalty for companies that do not publish it.
The device of phased retirementwhich allows you to receive part of your pension while working part-time, could be improved or even extended to the public service.
The device of job-retirement combination – consisting in pursuing a professional activity while receiving a retirement pension – could be revised in such a way as to allow beneficiaries to accumulate additional rights, as for phased retirement.
The government is also considering the creation of a bonus for senior job seekers who would like to return to a less well-paid job than that offered by unemployment compensation, under the future unemployment insurance scheme planned for the 1st January 2024.