Pension reform : why it divides within the government

RETIREMENT. The Economy minister, Bruno Le Maire, repeats the record of the pension reform must now be a "top priority" of the government. However, many minis

Pension reform : why it divides within the government

RETIREMENT. The Economy minister, Bruno Le Maire, repeats the record of the pension reform must now be a "top priority" of the government. However, many ministers do not seem to share his opinion.

Summary Timetable For that ? Universal system Age pivot Minimum pension Drudgery Lawyers, civil Servants Women

[updated on 30 November 2020 at 11h48] Two camps now appear to be forming within the government on the reform of the pension : those who are supportive of its return in the short term, and those, for which, it is far from the priority at the moment. For several weeks already, Bruno Le Maire, constantly hammering at what point the file should now be one of the major challenges of the coming months. In The Parisian Sunday, the tenant of Bercy said that it had "the strong conviction" that the pension reform should be "the absolute priority" to repay the debt generated by the crisis of health for the coronavirus. "The absolute priority is to get out of the health crisis, economic, social, protect jobs, it is the unanimous opinion of the social partners", said the minister of Labour, Elizabeth Terminal, when the program "Sunday politics" on France 3. "The top priority of the government is to address the health crisis, (...) this is to ensure that people can get out of the precarious situations in which they are collapsing because of this health crisis and a social one. That's the priority, it is not another thing", added the minister in charge of relations with the Parliament, Marc Fesneau, at the microphone of France Inter on Monday.

Another point of major disagreement : the meaning of the reform. "The pension reform, as it had been asked, it was a reform which aims to have more justice, and the angler on the budget issue does not seem to me at this point not the question", has down Marc Fesneau.

This battle of communication is far from trivial. In fact, it came a week after the publication of the annual report of the Board of direction des retraites (COR) . In the latter figure, the deficit of the pension system 23.5 billion euros in 2020. This figure is the result of the economic situation and a worsening of the revenue compared to last year. Activity, partial decrease of the contributions paid or defer payment are all major factors . The health crisis, the coronavirus causes a need for additional funding. This figure of 23 billion remains however to be nuanced, as it takes account of the economic outlook before the government's decision to put in place a second containment. The effects of the second wave of the epidemic, therefore, are not integrated.

In detail, the COR states that the share of pension expenditure in the gross domestic Product (GDP) is expected to increase from 13.6% in 2019 15.2% in 2020. It indicates that the pension system could be in equilibrium, at the earliest, in the mid-2030s, and, at the latest, 2070 ! And this, in particular through the progressive implementation of the reform of Touraine, which aims to extend the contribution period to 43 years of pensionable service. The NRC has levers, little bit surprising, to accelerate the return to equilibrium : lower pensions, increased contributions and raising the statutory age of retirement.

the annual report of The COR-will he lead the government to bring the issue of the pension reform on the table ? For the time being, the government has not disclosed specific timing. A new calendar might make it back to the table of negotiations by the end of 2020 or early 2021 . As a reminder, the project had been suspended, after it was passed in the first reading at the Assembly. Jean Castex has promised that the reform would be "maintained". It is committed to adopt a new method, distinguishing between the so-called reform is systemic, aiming at the establishment of a universal system - and the financial aspect. In a letter, the five leaders of the union (CFDT, CGT, FO, CFE-CGC and CFTC) have suggested to the government to"announce that the time is not to submit to the order of the day on the subject of pensions".

The publication of the report comes as the senators have recently adopted an amendment to the Republicans in the framework of the review of the PLFSS, aimed at ensuring the balance of pension schemes by 2030, by introducing the conference funding. Senator René-Paul Savary, develops multiple solutions in case of failure of the conference. It suggests, in particular, to push back the legal retirement age so that it reaches 63 years in 2025 . It also offers an acceleration of the reform of Touraine, which aims to extend the contribution period to 43 years of pensionable service. on the left, the amendment caused an outcry. Is this to say that the amendment will be preserved ? No. There is a fort &agra

Date Of Update: 30 November 2020, 19:58

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