Le Monde: France has watered down pension reform

Le Monde: во Франции смягчили условия пенсионной реформы

His speech was eagerly awaited. 11 Dec Edouard Philippe gave clarification on the future shape of the pension reform at the meeting in the Economic, social and environmental Council. In General, the Prime Minister confirmed the architecture of the future unified pension system, which was proposed by Emmanuel Macron during the election campaign of 2017 and presented in the July report delevoy.He gave answers to a number of unresolved issues and changed some of the plans of reform, particularly on the schedule of its implementation. Let’s deal with new issues, and that remained unchanged from the original proposals.What are the principles of the reform?— The creation of the so-called “universal” pension regimeunchangedAt the moment there are 42 retirement benefits, each of which has its own rules. Emmanuel macron pledged during the presidential campaign of 2017 to create a “universal pension system, in which one Euro charge will give equal rights” to all. “Universal” means everyone (…) without exception,” — said Edouard Philippe. Including for “political staff”.This means that all the economically active population will pay contributions on the same system throughout his career, and that everyone’s pension will be calculated according to the General rules. Furthermore, it makes life easier for those who change their profession, because they don’t have to move from one retirement mode to another.— Points in the basis of calculation of the pensionunchangedIn the framework of the government’s proposed system of contributions of the population will be converted to retirement points. They accumulate into a kind of “piggy Bank” in the course of a career, and then traded in Euro at retirement. In some situations, can earn “bonuses” (unemployment, maternity leave, caring for family).At the same time, the system is a “distribution”, that is, contributions of the active population are used to pay pensions. “France made a choice in favor of a system of “every man for himself”, and I think will never make it,” said Edouard Philippe.— Lawful retirement at age 62 and “axial age”Partial changeédouard Philippe confirmed that the reform is not talking about changing the age of retirement. Any economically active citizen of the country will still be able to retire at 62, or even 60 years in some cases (long career, workload, etc.). “You can’t force, but we need to push the French to work longer,” said the Prime Minister.For this purpose, the maintenance of the “age of balance” or “axial age.” In the case of retirement prior to his reaching the value of each score will be reduced. Conversely, it will increase for those who decide to retire later.The report of the high Commissioner for pensions, Jean-Paul delevoy provided for the establishment of axial age of 64 years in 2025, but now the government proposes to refer the matter to the leadership future of the pension system with the involvement of trade unions and heads of companies. “I talked with the trade unions, who did not want to dwell on the year 2025,” said Edouard Philippe, mentioning the prospect of the introduction of the axial age in 2027. This means that it can affect those attached to the current modes.The Prime Minister also assured of the existence of derogations from the rules for “those who are engaged in hazardous work” (firemen, police, military, gendarmes…).— The retirement balance may not to be in balance in 2025NewAs published in the November report of the Council for pension orientation, the deficit of the system could range from 7.9 billion euros to 17.2 billion by 2025, if it remains in its current state. The report delevoy provided that the balance of the pension system will come into equilibrium in 2025, when expected to come into force reform. This implies acceptance by the time large-scale economic measures.On Wednesday, Edouard Philippe announced that to balance the pension system by 2025 will come. “There’s no hidden agenda. We’re not trying to save money here and there. On the contrary. We seek to protect the purchasing power of pensioners”, — he stressed.— Reserves regimes of the liberal professions will be saved forthe NewSelected Autonomous pension regimes of the liberal professions now have financial reserves that can amount to billions of euros. The introduction of a single pension regime raises the question about the future of these amounts. The report delevoy provided for the use of these funds for universal mode, but the representatives of certain free professions, said of a possible “robbery”.Édouard Philippe stated that these “reserves will remain in professional offices” and you can go to “support the transition” of these regimes to the future system, particularly lawyers and doctors. “Pumping” money is not, he said.Who is affected and when?— For current retirees, nothing changesNo changesAs promised Emmanuel macron during the campaign, the new universal mode will not affect current retirees. Reform will not change the calculation of their pension.— Born before 1975, the reform will not affectthe NewEdouard Philippe recognized that the transition from the current system to the one proposed by the government, it takes time: “We are not starting with a clean slate. The transition from 42 modes to the new system represents a significant challenge. I understand that this is alarming”.The report delevoy it was envisaged that the reform will apply from 2025 those who were born after 1963 (the senior of them should then note 62). In response to criticism, the government decided to revise the schedule. Ultimately, the reform will apply only in 2037 to those who were born after 1975. In other words, the reform will not affect those who remained “is less than 17 years prior to retirement,” said the Prime Minister.— In special regimes of retirement until 2037 will remain unchangedthe Newone concession on the part of Edouard Philippe, before the entry into force of the universal regime in 2037 attached to special regimes people can continue to retire before 60 years. For example, born before 1980 (where is supposed to retire at 57 years) and 1985 (52 years) will be able to exercise the right to early retirement.— The new system will involve seniority after 2025, the NewGovernment initially talked about a gradual transition from one system to another, but Edouard Philippe, this time for the first time gave clarification about how this will happen. For those who will retire after 2037, its size will be calculated as follows:— work experience by 2025 will be considered “under the old rules”;— working experience after 2025 will be taken into account according to the rules of the new system.According to Edouard Philippe, this means that the first of those who will retire in 2037, she “70%” will be calculated according to the current scheme. “Not to harm the regimes which base the pension on the last six months, we will build provides reliable protection system,” he said in response to the alarm of officials.— The younger generation 2022NewGeneration 2004 will be the first that will go down in the future system, declared Edouard Philippe. According to him, it will pay royalties at universal regime 2022 (not 2025 as those born after 1975). This means that the transition to the new pension system will finally be completed with the retirement of this generation, that is, in 2065-2070 years.

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