On 13 April, the elected members of the National Council unanimously adopted a bill establishing the creation of a Monegasque Supplementary Pension Fund (CMRC) on 1is January 2024 (read our edition of April 15). A ten-year-old project, initiated in 2013 by the FEDEM and the USM then led by the Prince’s government and the social security funds, which will make the Principality sovereign on the subject of pensions, even though France is still shaken by movements social groups once morest state reform.
The objective is twofold: to provide employees of the Principality with a better supplementary retirement pension, compared to the current one under the Agirc-Arrco scheme, and to lower the contributions paid by employers and employees.
It now remains to finalize the financial agreement to repatriate the French regime to the Principality, which is estimated at… 2.8 billion euros.
Christophe Robino, Government Advisor-Minister of Social Affairs and Health answered our questions on the subject.
What are the advantages of creating a Monegasque Supplementary Pension Fund (CMRC)?
If we consider the solvency of the French Agirc-Arrco regime and its good management by joint committees, we ultimately had no reason to leave it. But we wanted to ensure our sovereignty and improve our attractiveness. By managing this fund ourselves, we will ultimately provide better pensions to retirees while having less weight for employers and employees. This therefore means, in the long term, better incomes for the latter.
The other argument put forward was that of no longer depending on French reforms…
The evolution of pension schemes in France and the regulations of these funds are gradually moving away from the Monegasque model, which has remained stable with retirement at age 65 but which is actually at age 60, without a discount. For women who have had three children, it is even 55 years.
France, like other European countries, is obliged to extend the duration of work and contributions to ensure the security of the schemes. What we refuse to do in Monaco. For the sake of consistency, therefore, so as not to end up with a disparity between the supplementary pension scheme and the general one, it seemed appropriate to us to repatriate the scheme and to model the rules for the liquidation of pensions on the general scheme of the CAR .
“You will have to have worked at least ten years in Monaco”
What will be the financial gain for future retirees (1)?
We expect an increase of 5 to 6% over time. The initial value of the CMRC point will, by necessity, be identical to that of Agirc-Arrco. But from the first year of exercise, the control committee and the financial committee can review the value of the point.
How many people are affected by the CMRC?
We are going to transfer to the Principality the file of 200,000 employees, 55,000 of whom are still working here. The others have gone back to France or Italy but, because of their career in Monaco, will be entitled to a supplementary pension paid by the CMRC. These are the same rules as the CAR: you must have worked at least ten years in Monaco (2).
“At the end of 40 years, this Monegasque supplementary pension fund will be in balance, if not profitable”
What are the negotiations, still in progress, with Agirc-Arrco?
They relate, on the one hand, to the total amount of maintenance of the pension rights of employees already retired from Agirc-Arrco. It is a question of reimbursing the pensions already liquidated until exhaustion of the rights. This balance was estimated at 2.8 billion euros. And, on the other hand, on the terms of this reimbursement. This will be spread over 13 years, at cost for the first five years to build up a reserve fund, then annually for the following eight years. With this hybrid scheme, we are sure not to be in difficulty with payment from Agirc-Arrco. It is important to specify that it is the CMRC which will finance thanks to the technical products resulting from the subscriptions and contributions.
The state, for its part, acts as guarantor.
Without this, the security of the regime would be called into question?
The projections, even in the worst-case scenario, allow us to be calm at the 40-year deadline. This Monegasque Supplementary Pension Fund will be balanced, if not profitable, which is rare for a pension scheme.
And beyond these four decades?
It is difficult to make predictions. The French are trying to have a reform that secures them at ten years. We have a safe diet at 40.
“In Monaco, we refuse to extend working hours and contributions”
If common ground is not found with Agirc-Arrco by January 1, 2024, the announced date of the launch of the CMRC, can this delay its creation?
I do not think so. The progress of the discussions and the validation of the milestones by Agirc-Arrco allow us to reasonably think that we will be able to sign the financial agreement in the coming months.
The National Council would like the scope of this new regime to be extended to civil servants. Were you able to measure the financial and technical impacts of such a decision?
The supplementary scheme for civil servants comes from the State budget. Being able to ensure the liquidation of these supplementary pensions on a dedicated fund would represent, in the long term, a substantial saving for the finances of the State, of the order of several tens of millions of euros. I agree with the National Council: it is an interesting option. But we must study the financial impact and whether or not this jeopardizes the security of the regime.
“There is no question of starting the operation of this system without having resolved at 99% the reconstitution of the careers of employees who have worked in Monaco”
The CMRC project was initiated by the FEDEM and the USM in 2013, two social partners who have a tendency to fight each other. What other issues would you like to see them agree on?
On this subject, they got along relatively well. I prefer to have a peaceful social climate in Monaco and that it lasts. There are several subjects on which it is necessary that one leans: the question of the interim, the framing of CDD, the evolution of the wages. On this last point, it is a question of attractiveness and there has already been a historic step in the hotel and catering industry. The latest pay scales dated back 23 years and had been published in francs. This demonstrates all the difficulties in getting the social partners to agree. But with a little goodwill from everyone, we can get there.
Why did it take ten years for the CMRC project to come to fruition?
It began in 2013 with a wish expressed by these two social partners. But to achieve it, it took a lot of work because the stakes are colossal. Since 2015, the social security funds have started working with Agirc-Arrco to reconstruct careers, to study how to secure the transfer of pensions, how to set up these chains for collecting contributions and contributions. It sounds simple said like that.
But there is no question of starting the operation of this system without having resolved at 99% the reconstitution of the careers of the employees who exercised in Monaco and who came under the Agirc-Arrco. The reconciliation must be as exhaustive as possible so that they do not lose the rights that would be due to them.
1. Retirees who have already liquidated their pension before the creation of the CMRC will continue to receive their Agirc-Arrco pensions but, in order not to be prejudiced, will benefit from a bonus benefit paid by the CMRC, thus compensating for any differential revaluation between the points of the French scheme and those of the Monegasque scheme. 2. Ten years continuously or not. The other condition is that these periods of activity include a minimum total duration of actual or assimilated work of sixty months.
“Government and National Council must work together for the general interest”
National advisers regularly complain regarding the slowness of government decision-making. Passing to the other side of the hemicycle, has your perspective changed on the question?
[Sourire]. I have always assumed that the Monegasque State might only function well if you had two institutions working together. The role of the National Council is that of a co-legislator: it will discuss the finished texts and will amend them, will be the bearer of ideas. And we have to take inspiration from some of them. The government does not only have the mission of being a co-legislator. He is in charge of the executive, that is to say, of managing the affairs of the State on a daily basis. There are a lot of subjects to deal with at the same time, a certain number of steps to follow, including in the Administration. This means that there may be, in the opinion of the National Council, a certain slowness. But it is also the responsibility of the State to ensure that the decisions it will take are relevant, that they secure it and do not expose it and its constituents to particular risks. We must respect each other’s work. We must work together in the general interest.
It’s been a year since you left the National Council for the government. What is your view of the past year?
It’s been a bit of a pivotal year. Stéphane Valeri, who for me was a great president of the National Council, has taken on other functions. Brigitte Boccone-Pagès, her right-hand man for many years, was elected the first woman president of this institution. Symbolically, this is a great step forward. I hope that we will be able to have an effective term of office with a united majority that will be committed to working for the general interest and with the Prince’s government. I don’t forget where I come from, I hope they don’t forget where I come from and that we can freely continue to dialogue on projects, legislative developments and move forward as best as possible to ensure the future.
Are the relationships still good?
Personally, I have good relations with the National Council. Afterwards, the role play between the elected officials and the government means that we have, from time to time, somewhat heroic scenes [rires].
Christophe Robino, former national adviser to Stéphane Valeri, went to the other side of the hemicycle last year.Conseil national.
