The contours of the pension reform will be fully revealed. The text will come into force from next summer.
‘For the past few weeks, the executive discusses pension reform with representatives of political parties and the social partners. The contours of this device are beginning to become clearer. Also, the government wants to raise the legal retirement age to 65, instead of 62. It's about a progressive reform at the rate of 4 months additional per year. Who is concerned ? What are the exceptions? We take stock in this article.
During an interview, the Prime Minister, Elisabeth Borne confirmed the establishment of the retirement age at 65 . Clearly, this is “a gradual postponement of the retirement age from 62 to 65 by 2031”, an essential action for “bring the system back to equilibrium within ten years” .
In this case, the government wants to extend the average duration of workers' contributions . He now wants to start working on the cost of the pension system. Indeed, the Orientation Council of retreats gave an alarming estimate. For the time being, State expenditure in this direction represents 14.5% of GDP, i.e. 332 billion euros per year .
However, the rate of this extension is still to do with the social partners .
'If there is another path proposed by the trade unions and employers' organizations which makes it possible to achieve the same result, we will study it,' said Elisabeth Borne.
For win during these negotiations , the government wants:
The famous “grandfather clause” will be discussed at that time . The key mechanism for carrying out this reform. Its application should respect the rights of current pensioners. It will begin gradually with the next retirees. Then its full potential will be achieved in a few years .
The retirees current are not affected by the upcoming pension reform . The law wanted them to retire at 62 and it's already done.
If the text is adopted in 2023, it will be effective for individuals born between July 1, 1961 and December 1, 1961 . They will therefore be the first to be affected by the increase in the legal retirement age.
In order to gradually increase this retirement, the government wants to add 4 extra months every year , to the minimum working time, until reaching age 65. Following this system, the symbolic age will be able to reach the age of 64 in 2027 and 65 in 2031 . Given this information, here's what the future retirement timeline might look like:
The government wants to show some flexibility . Thus, Elizabeth Borne declared that the age of cancellation of the haircut will not be postponed. This will be maintained at 67, like the current system.
This reform will even take into account some exceptions . This is particularly the case for retirees from long careers and those who practice a difficult job.
The head of government affirms that this reform of retreats will consider workers who entered service earlier . An exception will be granted to them.
In fact, the reform in 2023 provided that workers who already have a long career ahead of them, will be able to leave “two or four years before the legal age”. This benefit will be 'maintained, and even relaxed for those who really started working very early' . But we will have to be patient before knowing exactly what the executive means by “very early”.
The reform should also take into account the periods of parental leave considered in the calculation of the contribution period. Another detail that still requires negotiations with the social partners .
Many jobs are difficult for workers in the private sector, and even those in the public sector. The executive mentioned that he was going to consider this hardship , meaning that these professionals will be able to retire before the legal age.
Thus, the law granted benefits via the professional prevention account (C2P). Clearly, bonus points will be awarded to professionals who endure one or more points of hardship among the following 6 criteria :
Once these points are granted, the employee can use them as he wishes : retire earlier, switch to part-time or train.
Source : planet.frsource: foozine.com