The bill, presented this Friday morning in the Council of Ministers, leaves pending many points which will be settled by ordinances and decrees by the end of 2022. Here are the main lines of the text.
A universal point system. The project provides for the creation of a universal scheme, unique for all, private sector employees, civil servants, the self-employed and the liberal. The legal age remains fixed at 62 years (except derogations) and 1 euro contributed will give the same rights. Criteria valued in additional points will take into account, in particular, the arduousness, still under negotiation. All pension funds are destined to disappear in favor of a single common fund.
End of special diets. The reform merges the 42 existing schemes in favor of a single general scheme.
But specific diets. Police and military will be governed by specific rules. The pilots obtained the maintenance of their additional fund. Other professions, such as lawyers, may follow.
Who is concerned ? The future universal system will be set up from 2022. The 1st generation entirely governed by the new rules is the one born from January 1, 2004. For those born since January 1, 1975, the reform will apply from 2025 and will coexist old and new rules. For generations born before 1975, who will not yet have retired in 2025, decisions that could affect the conditions of their departure should be taken by the funding conference. For special regimes, the 1980 or 1985 generations, as the case may be, will be affected.
"Pivotal Age" or "Balance Age" . Edouard Philippe has agreed to temporarily withdraw the pivotal age, which he says is necessary to bring the regime into balance by 2025, by saving 12 billion euros, if the social partners find alternative measures by then end of April. The universal plan does indeed provide for a progressive age of balance, or reference age, which is based on the same principle: a penalty, or discount, applied when the person retires before this age, and a bonus, or surcharge applied if he leaves afterwards. It is the financial cornerstone of the new system. According to the executive's assumptions, he would be set at 65 years of age.
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Lifetime haircut and surge . The discount or surcharge will be 5% of the pension - for life - for each year of departure before or after the retirement age. Take the age of 65: starting three years earlier, at 62, the new retiree with a full career will permanently lose 15% of his pension. If he works until age 66, his pension will be increased by 5% for life.
New calculation method . Pensions will all be calculated over the entire career and no longer over the best 25 years (private sector), or the last six months (public service).
A minimum pension of 1,000 euros . The most modest who will have 42 or 43 years of contribution (depending on their year of birth), will benefit from a minimum pension equal to 85% of the minimum wage, or 1,000 euros net, from 2022.
Revaluation . Pensions will no longer be revalued according to inflation, but according to rising wages.
Point value. She is the great unknown. The only certainty is that the President of the Republic has made a commitment that the value of the point will not drop.
