RETIREMENT. The pension reform adopted in the first reading at the Assembly has been suspended due to the health crisis. We made the point on this, as we know.
Contents That would be relevant ? Calendar System of universal Age pivot Minimum pension Drudgery Lawyers, civil Servants Women
[updated June 18, 2020 at 10h36] The pension reform will be adopted before the end of the quinquennium, Emmanuel Macron or become an issue in the next presidential ? According to information from LCI, the executive would be decided to adopt the draft law ambitious before this deadline. In what form ? The mystery remains whole. In recent weeks, the executive has indicated that the reform would not be canceled , but recovery only in part. In this regard, a proposal for a communist law has recently been approved by the committee. It lets you fulfill one of the promises of the government : the revaluation of the minimum pension, farmers – all farmers -that is, from 75% to 85% of the Minimum wage . The objective of the executive is clear : avoid relighting the embers of the dispute, and this, while France has plunged into recession due to the health crisis of the sars coronavirus. The social partners, believe that the time is not yet ripe to put the topic on the table. “The future of this reform, it is the closet, it is there that it will be the best”, said the president of the CFE-CGC, during a debate. “We have not changed the opinion: it is considered that this reform is bad,” said Philippe Martinez. The CFDT and the CFTC, in favour of a universal system of points, are on the same wavelength as their peers. For Laurent Berger, of the CFDT, “it makes no sense to get back on the figure to the re-entry on this subject-there!”.
as a reminder, the initial goal of the pension reform is lead to a universal system, putting thus an end to the 42 pension plans existing in France. Last march 16, the president of the Republic announced the suspension of ongoing reforms, “including pension reform”. This decision was taken as the first phase of parliamentary had just ended at the national Assembly. The text of ordinary law, consisting of 65 items, was adopted without a vote, the executive has made use of article 49, paragraph 3, of the Constitution to counter the very large number of amendments tabled by the opposition. The organic stream, which includes a golden rule on the financial balance, has been adopted after a vote. The two texts of legislation were to and land at the palace of the Luxembourg in April . universal System, point value, age pivot… Discover in this article everything that is planned for your retirement.
You want to know how to prepare your retirement in the current context, whether you are concerned or not by this bill in the end ? Linternaute.com looked, for you, on this issue. See our dedicated folder without further ado.
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questions to ask yourself to prepare for retirement
If it is maintained, which is affected by the pension reform ?
You’re retired ? In this case, don’t worry, you are not concerned . Same goes for the people who are approaching the legal age of retirement . The calculation of your pension rights and the amount of the pension will remain the same, before and after the entry into force of the law. The switches will take effect in 2022 for people born in 2004 : they will be aged 18 years and see the entirety of their pension rights, calculated according to the rules of the universal system points.
For previous generations, the rocker, it is provided in 2025 for the generation of 1975 for the general scheme. You are official or affiliated to a special regime that allows you to leave today to retire before age 62 ? You are affected by the reform of the pension if you are born after 1980 , and that your job allows you to leave at the age of 57 years. If he allows you to leave today at 52 years old – the drivers of the SNCF, for example -you are concerned if you are born after 1985 . For you also, the entry in the system will occur in 2025. in
A simulator is called “Am I affected”, which you can view here, is available. Another simulator, called “path type”, has also been put online . It allows you to obtain a simulation of the amount of your pension in the current system and in the universal system, based on your age at retirement. It is necessary to take the results of these simulators with caution. All the parameters are not defined, and the answers still remain very general.
What would be the timing of application ?
The government wants the creation of a pension system is universal, by distribution and by points. It involves the disappearance of the 42 existing pension systems (pension-general, supplementary, special) in France at the present time. A project ofmagnitude, which implies very long periods of transition. Several elements must be put in place quickly. It explains all the major deadlines originally laid down :
December 1, 2020 : implementation of the governance of the future system. Given the health crisis, it’s a safe bet for this deadline to be shifted, if the reform is maintained. January, 2021 : first wage increases of teachers. January 1, 2022 : implementation of the new system for the first affected generation, born in 2004. The whole of his pension rights will be calculated with the point system. It is also by 2022 that is expected the introduction of the minimum retirement pension of 1 000 euros for a full career. 2025 : implementation of the system of retirement for the generation born in 1975 for the general plan (1980 or 1985, to the special regimes and officials, with an age of late). The pension rights from that date will be calculated according to the terms of the universal system. In the version adopted at the meeting, l a transition in the Italian style has been adopted for all assets (employees, civil servants…). The conversion of rights acquired under the current system of retirement will be the end of their career and not in 2024. To be clear, the 42 pension plans will continue during a very long transition period. The transition period for the self-employed has been extended from 15 to 20 years. 2037 : the assets born in 1975 will reach the legal age of retirement to 62 years. Some, if they meet the terms and conditions of insurance, will then retire, while having in mind that an age-pin (read more below) will penalize the amount of their pension. That is going to change the universal system by points ?
Make sure “ every euro contributed gives you the same rights” regardless of your profession and your status . It is the objective that is set by the government through this reform. It implies a harmonisation of the rules for the calculation of pension rights. Your rights will not be calculated in quarters but with points . “ Each hour worked will be eligible for points “, one can read in the bill. points of solidarity will be awarded for periods of inactivity experienced : unemployment benefits, illness, disability and maternity. How does one acquire these famous points ? A rate of one-time contribution – with the exception of the independent – must be put in place to 28,12% up to 120 000 euros annual revenue and then a membership fee, non-creator rights to 2,81% . Finally, the entire career will be taken into account , and not the last six months for the civil servants and the 25 best years for the employees.
The question of the value of the point was not decided , but returned to the governance of the pension fund universal. In fact, two values must co-exist : value purchase (the amount that you must contribute to in order to acquire a point of retirement) and service (the amount by which you must multiply the number of points acquired during your career to get the amount of your retirement pension). In the bill, it is recorded that “the acquisition value of the points will be fixed each year by the Board of directors of the national Fund of retirement universal”. Same goes for the value of service. “L a point value will not decrease, this golden rule is enshrined in article 55 of the draft law “, complete the text, specifying that the value will be indexed to wages, not inflation. Remains to be seen what will be the indicator, the secretary of State having recognised in the committee that such a tool does not yet exist.
what is the age pivot ?
concretely, the age of balance involves the creation of a system of bonus malus . An insured person who prior to this age of balance, would see his pension adversely affected by a downgrade. “At the entry into application of the universal system of retirement, they [the downgrade and the storm surge] will be fixed by decree 5 % per year (up to 0.42 % per month) as the current rate of discount and premium”, one can read in the bill. in
It was originally to create an age balance as of 2022 for the generation born in 1960 to 62 years and four months, to raise it gradually until you reach 64 years of age in 2027 for the generation born in 1965. The idea has pushed the CGT, generating a real arm of iron with the executive at the beginning of the year. It is clear that the idea of a measure of age (to lengthen the duration of contribution via an acceleration of the reform of Touraine in or create an age of balance) is not totally ruled out since it has been addressed in the framework of the conference funding. The trade unions themselves do not tell the opposite, provided that other measures are put in place.
For the time being, the bill prevents the introduction of an age balance in the future system, so as soon as 2037 for the generation of 1975. The impact study suggests that the fix in a first time, at age 65, to an insured person who is entered in the active life at the age of 22 and who has “validated all his life, four quarters per year, or 43 years” (length of contribution required in the framework of the reform of Touraine). To complete a full career, it will be necessary to validate 516 months in the future system.
And after ? Age pivot would increase by one month per generation, if we follow the hypothesis of the Insee, according to which life expectancy has increased by one and a half months per year. He might as well reach 67 years of age for the generation born in 1999 . Projections of the impact study should be taken with caution, because they depend on the life expectancy. However, this is far from being as linear as we think. Have also in mind that the pension reform plans on keeping the device for career long – the conditions of which could however be modified through the conference funding – and the departures for incapacity and disability.
this is what to say to the executive, including in its impact study, that the assets will not be affected the same way by this age pivot. “ half would not change their retirement age”, either because they “would have reached the full rate, in the absence of reform, at an age close to the age pivot”, or because they will, as now, at the age of 62 without discount for disability or incapacity, the study says impact. “ A third party could leave early”, in other words, before 67-year-old is now the age of the cancellation of the discount, of approximately “a year and a half” for the generation born in 1981. Finally, “ a fifth would later” , of about “three-year average for the generations born in the 1990s”, is there shown. The impact study also highlights the ” gains are very significant in pension “, as a result of this age pivot. It expects an average increase of the pension of “about 5%” for the whole generation of 1999 compared to today. Same goes for previous generations.
That is affected by the minimum pension of 1 000 euros ?
This is one of the measures of the social reform of pensions. It aims to increase the minimum retirement pension of 1 000 euros net per month for the achievement of a complete career (established to 516 months in the bill) as soon as 2022, and then 85% of the minimum wage (Smic) in 2025 . “The workers are independent and farmers are the main concerned, the small amount of their additional pension with their pension at an overall level lower than that of private employees”, one can read in the bill. During his speech to the Eesc, the Prime minister had also clarified that points of solidarity will be awarded for periods of inactivity suffered (unemployment benefits, maternity, sickness and disability).
as a reminder, the pensioners of the private sector can now benefit from the minimum contributory – provided you have the right to a pension at the full rate and the total amount of the pension does not exceed 1 177,44 € monthly -, the amount of which is 636,56 euros per month with less than 120 quarters assessed and 695,59 euros per month with over 120 quarters, as you can read on the site service-public . The MICO comes in addition to the basic pension. The officials, them, today earn the minimum guaranteed also known as MIGA, the amount of which is € 1 177. If on the paper the minimum pension seems to be simple, it raises a number of questions. The social partners must return to the discussion on this point of the pension reform in order to reach an agreement.
How arduous will it be taken into account ? And the employment of older workers ?
The “trades usants” will have the opportunity to leave “ two years earlier ” thanks to the taking into account of the painfulness. The professional account of prevention (C2P) will be open to public servants classified in category active – which can leave today early, at 57 years of age and employees with special diets. “The device will continue to allow a retirement at the earliest from age 60 based on the number of points allocated to this use, with a decrease in due proportion to the age of balance”, one can read in the bill.
the question is what will be the ” trades considered “usants” On this question, the ball has been returned to the professional branches. These last are responsible for listing these trades usants and even propose solutions for the prevention of the difficulty, in the six months following the publication of the law, had stated Edouard Philippe at the conclusion of the multilateral meeting on Thursday 13 February. A relaxation of criteria has also been announced that night work is taken into account. The lowering of the thresholds has been included in the bill. They are lowered from 120 to 110 nights per year and 50 to 30 nights for the teams alternating. Finally, for the caregivers specifically, it is expected that a new system be put in place to fund a part-time basis, without “loss of income”, at the end of a career.
The criteria for hardness , themselves, should not evolve, the executive refusing the reinstatement of the four dismissed in 2017 (the handling of heavy loads, the postures, vibration, mechanical and chemical risks). Today, there are six criteria in total : repetitive work, by successive shifts alternating, in the middle hyperbaric oxygen, in extreme temperatures, in the noise and night work. Why is the government, he refused the reinstatement of the four criteria ? The executive justifies its position on the grounds that their technical application is not possible.
Still in this context of recognition of the arduous, the ministry of Labour has also worked on his side on the leave conversion for employees plying an occupation, painful during ten, fifteen, even twenty years . A period of six months, this last would be paid 100% of salary and is accessible from a number of points accumulated in the account painfulness. “We understand the logic : if we spent a key period of his career, exhibited at the drudgery, it may be smarter to let the one who wishes to switch to a job that will be more exposed to the difficulty rather than to wait to go until the end of his career and taken into account at the time of repair or an early departure,” has detailed Edouard Philippe. The latter noted that the consultations with the social partners led to the idea that it was necessary to generalize the medical examination generalized for the trades painful as early as age 55, in order to identify those “who will be able to enforce their rights to an early retirement due to permanent incapacity “.
another major challenge of pension reform is the employment of older workers. On phased retirement, Edouard Philippe was reiterated in December that he wanted to see the phased retirement be extended to all, including officials and executives in the package. phased retirement will be available as from the age of 60 years and will be “much more accessible”, for the private sector and the public. As a reminder, this last is reserved to the insured under the general scheme, the agricultural scheme and the self-employed. It allows an employee to get to half-time, thus drawing a salary corresponding to a half-time, and part of his pension of retirement. “Private employers will now be able to refuse the part-time employees entitlement to phased retirement if this proportion reduced of work is incompatible with the economic activity of the enterprise”, complete with the article 25 of the draft law.
And the total employment to retirement ? at the present time, it is possible to have an activity being retired, but it does not acquire new rights. In the framework of its reform of pensions, the executive hopes that any activity as an employed allow to acquire new rights , and so enhance the value of the amount of his pension. “When the insured stopped their retirement and will continue to exercise an activity, they will acquire rights in respect of activities listed, from the age of balance”, one can read in the article 26 of the law sent to the Council of State. Some of the rules, they will not be changed : 67-year-old remains the age at which an employer may separate the employee with their agreement (70 years without his agreement). The improvement of the device is scheduled “as of the January 1, 2022,” can it be read. A reflection should be initiated by Muriel Pénicaud around a time savings account “which would follow each of our fellow citizens throughout his life to help manage her time working in a differentiated way depending on the time of the career”. “No wait, we’re going to déplafonner in the public service, the time savings account to make possible the half-time end of career for example in the hospital”, had stated Edouard Philippe.
Why are lawyers opposed to the reform ? What does it provide for them ?
The national bar Council (CNB) announced last Friday that the continuation of the movement against the pension reform, in the wake of new government announcements. In a press release, the minister of Justice has called to suspend the social movement. What are the measures put forward by the government ? The project provides for a contribution rate harmonized for all assets. The self-employed, themselves, are an exception, since the rate to 28% will be applied up to 40 000 euros of revenues (and then 12% up to 120 000 euros in revenue) per year. Lawyers, like other liberal professions and the selfemployed, are afraid to attend a doubling of their contributions, and therefore, the programmed death of their sector. To compensate for the sharp increase in expenses, the government has promised a reform of the contribution basis, with an abatement of 30%.
details have however been made on the transition. “There will be a transitional regime until 2040 (…), with a smoothing in time which may even go up in 2054”, has advanced Nicole Belloubet. “The normal diet (increase of contributions and pensions), it is 0.5% per year from 2029, this is 15 euros per month. From there, we say, choose a softer transition, with more solidarity, if you like”.
The minister of Justice disclaims any and all “falling pensions” of lawyers in the future system. To recall, the government has consented to the maintenance of the CNBF (Caisse nationale des barreaux français). It will be responsible for the management of “all lawyers” are involved or not, by the project, could we read in the press release of the ministry of Justice. The CNBF can also implement mechanisms of solidarity to the profession and to maintain the reserves accumulated in the current regime. These proposals are not appropriate for lawyers. And for good reason, these last few contest the very principle of the universal plan.
That said the pension reform on the officials ? And the teachers ?
Like all insured, they will have their pension rights calculated on the entire career. in categories “active”, who receive departures under the current regime, will not from to 57 years . On the other hand, they may take advantage of the professional account of prevention (C2P) for the taking into account of the drudgery – and so from, at the earliest, 60 years to the pension. A consultation has been opened in this direction, led by Olivier Dussopt. It must make its results the week of 10 February.
The government has agreed to the exceptions to the trades of peerage : police officers, firefighters and military. Thus, police officers will continue to retire from 52 years of age, provided they have achieved 27 years of service. An employer contribution is also provided for these employees to compensate for the disappearance of the enhancement of the 5th, which allows you to gain an extra year of service for every 5 years worked.
The teachers, themselves, will benefit from improvements in wage, in the form of premiums. The first improvements are expected to intervene as of January 1, 2021 for new hires . For others, the act of programming should be spread out over five years, from 2022 to 2026, according to the information of the Echoes. For the time being, a budget of 500 million euros per year is planned with a cumulative increase . The law should also establish a percentage of gross domestic product (GDP) devoted to education, tells the economic daily.
And on the pay slip of teachers, how that will translate ? “We want as soon as next year, an increase which can be between 70 and 90 euros net per month ,” was developed by the minister. One thing is for sure, all of the teachers will not be accommodated in the same boat. Those who are born after 1975, which are de facto concerned by the entry in the system “universal” as early as 2025, will probably have their wages more valued than those who were born before this date . “Specifically, as of 2021, a novice teacher will win 100 euros net per month ,” said the minister, on BFMTV Sunday, February 23. “It is as if it was an annual premium of 1,200 euros net. It will also affect the generations that follow, in proportions that we must still define”.
The minister suggested that these increases could be made “on merit “. “There is a common dimension to all that is going to do that, there is an increase for all, because it is necessary to mount the general level of wages, and of course there is a dimension of merit, it already exists in part, and we’ll probably increase it”, he informed the micro BFMTV. “ What will happen, this will not be the clopinettes, this will be extremely substantial , on a life this is going to be several tens of thousands of euros for the persons concerned”, defended Jean-Michel Blanquer at the microphone of France info on Wednesday, February 19. The next negotiations, scheduled to start on 24 February, promise to be stormy with the trade unions.
are women really winning with the pension reform ?
To demonstrate that women are going to be winners with the universal system, the executive highlights the progress on the family rights and survivors ‘ pensions. A bonus of the rights of 5% is provided from the first child. It is associated with an increase of 2% from three children. The government has, therefore, made a cross on the lengthening of the period of insurance. The government has proposed Friday, the mandatory assignment of half of the family rights to the mother in respect of maternity “in respect of maternity without the possibility of sharing “, to reassure the women’s associations. The remaining 2.5%, granted in respect of the education of the child, the child will remain on them that can be shared and allocated by default à.; the mother. women raising children on their own should get “extra points”.
What about the rights already acquired ? “ For children born before the entry into force of the new system, increases in the duration of insurance as well as the increase for parents with 3 or more children at this date will continue to apply and will be taken into account under the 100% guarantee of acquired rights “, we can read on the government site. “These children will be eligible for the second part of their career, performed in the universal system, the allocation of the 5% increase and the 2% surcharge for families with many children”.
terms and conditions of the conversion of these rights in points will be determined by order at a later time. For parents who reduce or interrupt their activity to raise a child, they will be able to acquire rights to retirement via old-age insurance for parents at home (AVPF) . “Rights will be granted the title of national solidarity to the tune of 60 % of the SMIC during the first 3 years of the child, and during the first 6 years from the 3rd child”, it adds.
Regarding the pension reversion , it was decided that it would be open as early as 55 years of age and that it should ensure that 70% of the pension of the couple. A mission was entrusted to Bertrand Fragonard, the high council of the family, the conclusions of which were made last week. About the survivor’s pension, it was announced that the divorced women will be able to touch 55% of the pension” of the deceased. The board will be pro-rata to the duration of the marriage, reported to the period of contribution and in terms of resources , said Laurent Pietraszewski. An amendment also provides for a report on the extension of the pension to couples in a civil partnership. Each child will be entitled to an increase of the pension in percentage points 5%, half of which is automatically assigned to the mother. Lone parents will benefit from additional points, while the women with low resources, will be entitled to a minimum guarantee of points.
