2023-07-17 10:16:00
Has the French pension system reached its limits? This is the question posed by the latest report by the experts of the CSR (retirement monitoring committee). This team of statisticians and economists, placed under the Prime Minister, is responsible for assessing whether the pension system is in line with its main objectives: fair treatment of insured persons, solidarity between generations, and financial sustainability.
“We will not go back on the pension reform” (Yaël Braun-Pivet, President of the National Assembly)
However, according to the 2023 report of the CSR, published a few days following the validation of the reform by the Constitutional Council, the current uncertainties on the real effects of the pension reform confirm the limits of the system, which is too fragmented and too difficult to read.
The effects of parametric reform
During Emmanuel Macron’s first term, Édouard Philippe, then Prime Minister, had launched a structural reform of the pension system around a universal system, but the preparation of the latter had been interrupted by the Covid crisis. During his second presidential term, Emmanuel Macron chose a parametric approach. Its reform raises the legal retirement age and extends the duration of contributions for generations that were spared by the previous reform.
As a result of this reform, we can see with certainty a reduction of 0.6 to 0.7 months in the time spent in retirement, say the experts. This decrease is the result of the increase in the average retirement age from 62 to 64 years.
Similarly, the guarantee of a minimum pension of 85% of the Smic (for a full career at the Smic) is now guaranteed, “ provided that Arcco-Agirc (the supplementary pension organization) also takes part in the fall, said Didier Blanchet, president of the CSR. This guarantee makes the reform “redistributive”, seen from the angle of overall assessment of benefits over the entire retirement period “, he estimated.
At the end of June, the two main French pension funds, the National Old Age Insurance Fund (Cnav) and Agirc-Arrco (complementary), had displayed their serenity to prepare for the first post-reform departures from September 1.
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The difficulties of the system
“This year’s experience has reinforced the feeling that we are reaching the end of what parametric approaches can do (just changing settings such as the legal retirement age or the contribution period) in a system that also remains fragmented and difficult to read”, underlines the 2023 report of the monitoring committee.
« The first effect of this complexity is to make it difficult to share the observation on the real situation of the pension system, as shown by the differences in assessment between the pensions orientation committee and the government on the levels of deficit expected following the reform, continues the report. Similarly, the costing of the measures taken and the evaluation of ” their true impact ” East ” difficile “, estimates the experts of the CSR.
In the June report of the COR (retirement steering committee), the experts state that the pension system will be ” sustainably in the red next year. It will therefore not be balanced in 2030 as promised by the executive.
(With AFP)
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