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The CGT and the CFDT refuse to allow retirees to assume the cost of suspending the pension reform

The government plans to finance the suspension of pension reform by underindexing pensions and leveraging mutual funds.

The CGT and the CFDT expressed this Thursday their opposition to the solutions chosen by the government to finance the suspension of the pension reform, which involves mutual funds and retirees.

The suspension of the 2023 pension reform, described by the CFDT during its announcement on October 14 as a “true victory for workers”, will be financed in part by an increase in the contribution rate of complementary organizations (mutual societies, health insurance, etc.) which will go from 2.05% to 2.25% in 2026, according to the amending letter presented on Thursday to the Council of Ministers.

The tax on mutual companies “will have an impact on employees and even more so on retirees”

On the other hand, retirees will be forced to contribute more, since the underindexation of their pensions in relation to inflation, initially planned at 0.4 points, will increase by an additional 0.5 points in 2027. Two financing methods denounced by the CGT. Regarding underindexing, the union points out, like the CFDT, “a second blank year in 2027” and “a considerable drop”, in the voice of its confederal secretary, Denis Gravouil.

As for mutual societies, the increase in their contribution rate “will still have repercussions for employees and even more so for retirees”, predicts Denis Gravouil. “When we are retired we already have the most expensive options because we have more needs for health financing and we find mutual and complementary health insurance prices that continue to rise due to the transfer of expenses,” he laments.

Author: PL with AFP
Source: BFM TV

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