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the main points of the reform by points

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January 24, 2020
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A brand new "common" and point-based pension system with an identical social rights for all, but additionally a really controversial "age of equilibrium": listed here are the details of the reform introduced on Friday within the Council of Ministers.

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Common

The long run system will cowl "all folks working in France, with out exception": workers within the non-public sector and particular schemes, civil servants, magistrates, troopers, farmers, self-employed staff, parliamentarians …

All lively staff born from 1975 will contribute to a brand new "Nationwide Common Pension Fund" which can oversee the 42 present schemes – earlier than, maybe, absorbing them.

By factors

The quantity of the retirement will rely on the variety of factors collected "all through the skilled profession" and now not on the contribution interval (in quarters) and the reference wage (25 greatest years within the non-public sector, final 6 months within the public).

Basic unit of account of the long run system, the purpose may have an "acquisition worth" (throughout the profession) and a "service worth" (for the calculation of the pension), which can’t lower or improve extra slowly than inflation, and can ultimately evolve in accordance with common wages.

Steadiness Age

The authorized retirement age will stay at 62 (or much less for sure professions), however it will likely be essential to "work slightly longer" to obtain a full pension.

An "age of equilibrium", mixed with a "bonus-penalty mechanism" of 5% per 12 months, will thus intention to "encourage the French to go away later with a greater pension".

Initially, the federal government envisaged its entry into pressure in 2022, to progressively improve it to 64 years in 2027. Confronted with union opposition, this "short-term measure" was withdrawn from the invoice, a " convention of funders "to suggest by the tip of April different means" of attaining monetary steadiness ".

Early departures

Civil servants exercising sure "royal features" (police, customs, jail guards, air visitors controllers) can at all times retire at 57, even 52 years of age. Ditto for the army, who will hold the proper to obtain a pension after 17 or 27 years of "efficient service".

For different civil servants within the "lively classes" and workers of particular schemes, the authorized age will probably be progressively raised to 62, however the extension of the "arduous work" account and of retirement for everlasting incapacity already in pressure within the non-public sector will enable some to cease working at 60.

Profession Ends

Phased retirement, which makes it potential to obtain a part of his pension whereas persevering with to work part-time, will probably be prolonged to workers on a day package deal, particular schemes and farmers.

The principles for combining employment and retirement will probably be modified in order that these receiving a full pension can earn extra factors once they resume an exercise.

Minimal pension

Future retirees "having accomplished a full profession" will obtain if vital "extra factors" in order that their pension reaches 1,000 euros internet in 2022, then 83% of the Smic internet in 2023, 84% in 2024 and 85% in 2025.

Household rights

Every youngster will probably be entitled to "a rise in factors of 5%", allotted by default to the mom however which each mother and father may have "the potential of sharing".

An extra bonus of two% will probably be granted for the third youngster and shared equally between the daddy and the mom, until they determine in any other case.

Conjugal rights

The survivor's pension will assure to the surviving partner, from 55 years and after at the least two years of marriage, "70% of the retirement factors acquired by the couple".

These guidelines will nonetheless solely apply "from 2037", for individuals who have joined the common system. The rights of divorced spouses will probably be specified later by ordinance.

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