It will not be finally on December 15, but on January 10 that the government presents its pension reform. This project, whose main lines are known, is already contested by all the unions, the opposition and even by the majority. This reform is already considered potentially “explosive.”
The legal retirement age at 65 or 64 years
The executive has already begun to prepare minds, multiplying press interviews, work meetings in Matignon and summit dinners at the Élysée. But the plan is a foregone conclusion, marked by a presidential promise to roll back the legal age from 62 to 65.
There is now talk of a postponement at age 64, but with a counterpart: the increase in the contribution period. For the Head of State, the increase in the retirement age will allow not to increase contributions or reduce the amount of pensions.
From the “61” generation
This reform will affect those who are on the eve of retirement, unlike the previous one that spared those who were less than five years old. The first generation in question is from the second half of 1961, a population that could theoretically finish their professional careers as soon as next summer.
Everyone will be affected, including long runs. Those who started working before the age of 20 and who expected to leave at 60 will have to work two more years, at 62.
In compensation, the minimum amount of the pension for new retirees will be increased to 1,200 euros for those who have completed their degree. Regarding hardships, those that were removed from the system during the last five years (painful postures, handling heavy loads, etc.) will be reincorporated. The Government also plans to set up an index for the elderly to monitor the behavior of companies in terms of training and hiring people over 55 years of age.
The calendar
The government no longer wants to waste time, but at the same time give time to consultations. This project that was going to be presented on December 15 will finally be presented on January 10, Emmanuel Macron revealed this Monday. Consultations with unions and employers’ organizations will begin on January 2. The objective remains an entry into force of the reform for the summer of 2023.
Meanwhile, the text will go through both chambers, the National Assembly and the Senate. If a majority does not emerge, which seems likely, the government intends to use the constitutional weapon of 49.3 to get it passed without a vote. This urgency is justified by the lasting return of massive deficits, which would exceed 12,000 million in 2027.
The 49.3 gun
The battle promises to be tough in the Assembly. All the opposition parties are against it and even within the majority, the project provokes strong reluctance. François Bayrou, president of Modem, believes that the educational work has not been done.
The head of deputies of the LFI, Mathilde Panot, vows to “fight it step by step” with a shower of amendments. Marine Le Pen (RN) made known her “absolutely total opposition to the bottom” of the reform. The leaders of the various parliamentary groups will once again be received at Matignon between Monday and Thursday morning.
union coalition
No union accepts this reform, not even the CFDT, which hardened its position on the issue during its last congress in June. Since then, its leader, Laurent Berger, has insisted on his opposition to any “measure of age” and has warned against a “hard reform” that would provoke an “equally determined social reaction”.
His CGT counterpart, Philippe Martínez, also urges the executive to “take it seriously”, but without illusions: “They are obstinate”. His troops also know how to be strong, as the recent blockades of refineries have reminded us. In a context of record inflation and wage demands, the warning shots also hit the electricity and gas industries, as well as the RATP, whose special regimes are targeted by the government.
These warnings raise the specter of the social conflict of the winter of 2019-2020, which had been joined by railway workers, truckers and stevedores, among others. But union strategists are waiting for the right moment to do battle. The eight national centers (CFDT, CGT, FO, CFE-CGC, CFTC, Unsa, Solidaires and FSU) are scheduled to meet following Elisabeth Borne’s announcements, to fix their response around the date of presentation of the bill . in the Council of Ministers – on January 10, confirmed Emmanuel Macron on Monday.
Too much reform?
France has undergone a series of important reforms of its pension systems over the last thirty years to respond to the aging of the population and the financial deterioration of its funds.
In 1991, a White Paper highlighted the future financial difficulties of the schemes and recommended extending the contribution period from 150 to 168 quarters in order to benefit from a full pension. In 1993, the Balladur government increased from 37.5 years to 40 years (from 150 to 165 quarters) the contribution period in the private sector for a full pension. The amount of pensions is now calculated on the best 25 years of working life instead of the best 10
In November 1995, under the presidency of Jacques Chirac, the reform of its Prime Minister Alain Juppé was not approved. His objective was to reform the pension system for civil servants and public services. For almost a month, public transport has been blocked due to strikes.
In 2003, the reform of François Fillon, Minister of Social Affairs in the Raffarin government, completes that of Balladur, raising the contribution period to 40 years for civil servants. It causes strikes and demonstrations. It is only accepted by the CFDT.
In 2007, Nicolas Sarkozy’s reform refers to the specific regimes of public utility companies (EDF, GDF, SNCF, RATP, Banque de France, etc.) as well as to professions with special status (notarial employees, elected officials and parliamentary employees) . For these employees, the contribution period increases to 40 years.
The Woerth reform of 2010 ends the principle of retirement at age 60. The legal retirement age has been raised by two years, progressively increasing to 62 years. The same applies to the departure age with full rate (67 years in 2022). The reform extends the long-career system to those who started working at age 17, allowing early departures.
In 2014, the reform of Marisol Touraine, Minister of Social Affairs under the presidency of François Hollande, inscribed in time the principle of extending the contribution period to obtain a full pension. It is increased by a quarter every three years from 2020 to 2035 to reach 172 quarters (43 years) for the generations of 1973 and later. An emergency personal account has been created to allow those who work difficult jobs to anticipate their departure.
Source: BFM TV
