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Civil servants' plans: this hidden deficit that weighs heavily in the equation

2022-05-23T19:10:55.639Z


DECRYPTION - The real deficit of civil servants' pension schemes was in reality largely underestimated, which reinforces the government's desire to reform.


Elisabeth Borne insists on her desire to "

not lie

" to the French.

This is good, because a truthful discourse on the financial situation of the pension system is needed to understand the need for its recovery.

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Based on the annual report of the Pensions Orientation Council (COR), the unions believe that a reform is not financially useful.

The latter envisaged last June a return to equilibrium “

towards the middle of the 2030s

” in the best case, if not “

between 2040 and 2050

”.

Pension spending - 332 billion euros in benefits paid in 2020 to 16.9 million retirees, or 14.4% of GDP - will not explode, they say.

Their weight in GDP will even decline in the long term due to the rules for indexing pensions to inflation, which cause them to evolve more slowly than salaries.

But also because the many baby-boom generations will eventually die.

Finally, they assure that an increase in the retirement age will lead…

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Source: lefigaro

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