Pension reform: the French who will have to validate more quarters

The government wants to extend the contribution period to deliver a full-rate pension (pension reform). The details.

This Tuesday, January 10 at 5:30 p.m., Prime Minister Elisabeth Borne unveiled the main lines of the new pension reform project . The legal retirement age is agreed at 64 and no longer at 62, as at present. This reform aims to accelerate the Touraine law which also wants to increase the contribution period. From 2027, the executive wants the full rate of full-rate retirement be set at 43 years of contributions . But all this will be done gradually. Find out in this article everything you need to know on this reform .

Pension reform: more quarters to validate

During the period of activity of an employee, part of his salary is deducted and paid regularly to pension funds . A validated quarter is a fully paid quarter, i.e. an accumulation of 150 times the hourly minimum wage. As a reminder, the hourly rate of the net minimum wage in 2023 is equal to 8.92 euros s.

The quarters assessed are then added together equivalent quarters. These latter being accumulated free of charge during unemployment .

Quarters of increase are also attributed to the mother in some cases . Thus, four trimesters are granted to her due to adoption or maternity. Then four more him will be awarded for the education of the child .

The pension reform aims to increase the duration of retirement insurance , i.e. the period during which the employee worked and therefore contributed.

'For the future of our pay-as-you-go pension system, we propose that those who can work progressively longer,' said Prime Minister Elisabeth Borne.

The government wants to redefine full-rate retirement

In order to obtain a full pension, the employee has two choices :

• Have contributed a specified number of pension insurance
• Retire at age 67.

The Touraine reform, voted in 2014, wanted the number of quarters validated for having a full pension is increased . Since the real application of this law in 2020, each employee must validate 172 quarters (43 annuities) for get a full pension .

This Tuesday, January 10, 2023, Elisabeth indicated that “the contribution period to obtain a full pension will be increased to 43 years from 2027 instead of 2035 . We will reach this target faster by moving to a rate of one quarter per year. »

The government pointed out that he would not go beyond his 43 annuities .

“To say that we will have to work for 47 or 48 years is wrong. No one should do it, ”said Elisabeth Borne, on Franceinfo.

On the other hand, active category civil servants will be entitled to a different rate of retirement at full rate . The reason being that these must also face difficult working conditions . The law therefore wants to consider the arduousness for these jobs.

The head of government also maintained “At age 67, the age at which people can retire without a discount regardless of their contribution period” .

Different retirement dates from the pension reform

The number of contribution quarters required to receiving a full pension will be different by year of birth. In effect, the change will be done gradually .

• The 1961, 1962 and 1963 generations will contribute 168 quarters (i.e. 42 annuities).
• The 1964, 1965 and 1966 generations will contribute 169 quarters.
• The 1967, 1968 and 1969 generations will contribute 170 quarters.
• The 1970, 1971 and 1972 generations will contribute 171 quarters.
• The generations born from 1973 will contribute 172 quarters, or 43 annuities.

In order to obtain a full pension rate , employees will have to work more . This is still possible since their legal retirement age has also been postponed .

People born between September 1 and December 31, 1961 will have to wait until they are 62 years and 3 months old before retiring . For the 1962 generation, it will be at 62 years and 6 months. The 1963 generation will leave at 62 years and 9 months. Then the 1964 generation can retire at age 63 . The decline will be gradual until reach the age of 64 for the 1968 and subsequent generations .

Source : centrepresseaveyron.fr