Pensions: consultation on reform enters hard

The Ministry of Labor and the social partners address, from the week of November 28, the last cycle of discussions devoted in particular to the recovery of the legal retirement age.

By Bertrand Bissuel

The most thorny themes were kept for the end. Committed to a month and a half ago, consultation on pension reform is part of its ultimate phase, with a third and last “cycle” of discussions devoted to the financial “balance” of pension plans. Meetings between the Ministry of Labor and the social partners must take place from the week of Monday, November 28 – according to a calendar which is not precisely known, at this stage. On the agenda, one of the most controversial campaign promises of Emmanuel Macron: the recovery of the legal age of departure from 62 to 65 years.

This measure is vigorously contested by all unions. There is “no need” to take it, said on Monday morning on the RTL set, Laurent Berger. The secretary general of the CFDT once again indicated that his organization will oppose it. According to the leader of the Cedétiste central, such a provision would create “a lot of conflict”, while the social climate is already characterized by a strong “incandescence”. “Does the government really want to set fire to the country and do they want to make a deeply unfair reform for the most modest workers?”, He said.

A position shared by Philippe Martinez. In a daily interview L’Humanité on Monday, the number one of the CGT claims that a very clear majority of the population is hostile to parametric modifications having the consequence of postponing the age of rights to 65 years or to increase the contribution duration required to be able to receive a full -rate pension. “This presumes powerful mobilizations if the government persists,” he warns.

anti-redistributive effects

To support their criticisms, employee organizations are based on INSEE surveys that show that life expectancy at 65 is much less important among the most modest people. It was, for example, 15.8 years for the 5 % of men with the lowest standard of living and 21.8 years for the most favored 5 %, over the period 2012-2016.

Unions also have the 2010 reform in mind, which staggered the legal departure age from 60 to 62 years. It has had anti -redistributive effects, according to a note from the Research, Studies, Evaluation and Statistics Department – a service attached to social ministries. Thus, the transition to the 62 -year -old rule would make winners, among the 1980 generation: the 25 % of the best paid people. Over their entire period of retirement, they would receive an overall amount of pensions higher compared to the situation where the law would have remained unchanged. Such improvement is that they would retire later, with more comfortable end-of-career remuneration, which would generate more rights to life insurance. On the other hand, half of the individuals at the bottom of the income scale would be losers, as well as those who are “out of employment”.

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/Media reports cited above.