HomeEconomyStaggered retirement and combined pension employment: what changes the reform that the...

Staggered retirement and combined pension employment: what changes the reform that the Government wants

The project presented to parliament provides for changes in the conditions of access to these regimes that allow, for the former, to reduce their working time as retirement approaches and, for the latter, to supplement their pension by working.

Less than 25,000 workers today benefit from what is known as progressive retirement, a device that makes it possible, in particular, to attenuate the psychological impact of passing from a salaried activity that consumes a lot of time to the total absence of professional obligations that confers a full and full retirement.

The so-called progressive retirement scheme allows an employee close to the age at which he has the right to finish his career to ask his employer to stop working full-time (for example, if he wants to have a four-week weekend all year days or all of his afternoons) while he begins to receive part of his retirement pension.

Thus, a worker who becomes part-time will only receive half of his salary but will also receive half of his retirement pension calculated on the basis of what he has already contributed. And, of course, while working part-time, he will accumulate supplementary pension quarters and points that will increase the level of the full pension that he will receive when he stops working altogether.

Entrepreneurs must justify their refusal

In the project presented to Parliament, this system is expected to evolve on two levels. Firstly, the age from which an employee can request to benefit from it. It was at the earliest at age 60, it will be two years before the age of majority, so it will depend on the applicant’s date of birth. In other words, you’ll have to wait longer to take advantage of this phased retirement.

On the other hand, the government has foreseen a provision that should allow more employees to benefit from it, since an explicit agreement from the employer is nowadays necessary to benefit from this progressive retirement while with the reform, if after having requested it , the company does not answer you or does not justify its refusal and does not explain why your activity is incompatible with part-time work, you will automatically be granted this progressive retirement.

Working after retirement will increase your pension

Another novelty that the reform provides: civil servants will also have the right to benefit from this system. The project presented to parliament it also provides changes for retirees who continue to work. With an important novelty for this combination of employment and retirement.

New or rather return to the rule that prevailed in 2015, namely that a working pensioner sees the level of his pension increase. Because today his salary is subject to contributions but the amounts paid to old-age insurance or Agirc-Arrco have no effect on his own retirement. With the reform, a new calculation will be made when you stop working and the supplementary pension quarters and points will be taken into account, increasing the level of your pension from the moment you lose the benefit of your salary.

Therefore, the system will be fairer and more incentive based. But since the objective of the reform is also to increase the effective retirement age, there will probably be fewer pensioners able to continue working and, if anything, it will be for a potentially shorter period.

Author: Pierre Kupfermann
Source: BFM TV

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