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The age at which French citizens can receive a full pension is expected to rise from 64 to 62, a 64-year-old, the government's special adviser on pension reform said. Demonstrations against the reform, which aim to unify 42 different regimes into a single point-based system, have already been planned.
In a report, Jean-Paul Delevoye, said that workers could still retire, as promised by President Emmanuel Macron during his campaign, but that they should work two more years to get a full board without reduction in the new system effect in 2025.
The French pension plan is currently facing a major budget deficit and the changes are aimed at saving public money.
To ensure the financial balance of the pension system, Delevoye proposes to create an "age of balance" or "full pension age" at age 64 for all citizens.
For the moment, people aged 62 to 67 usually take a full retirement.
People who want to retire at age 62 can do so, insists the special advisor, while observing a decrease of 5% of their pension.
Simplified process
In the current system, each person receives a different pension based on their salary and the duration of their work.
The new reform aims to unify 42 different pension schemes into a single point-based system. Here are his main strengths:
- Unique system
- Simplified contributions
- The legal retirement age remains at 62
- Retirement "balance" at age 64
The plans are likely to benefit the self-employed and the self-employed, but the effect on public sector workers is unclear.
The reform is potentially explosive. Most French people have a public pension plan and do not benefit from a private plan. The problem is important.
Unions have a history of opposing changes in pensions, often sending millions to the streets to protest.
Opposition and negotiation
On Thursday, two extremist unions, FO and CGT, called for a strike on 21 and 24 September.
"This system is all in smoke," said Philippe Martinez, a Communist-backed CGT union leader who has long enjoyed the support of government employees and workers in power plants and railways.
"The message we are sending to workers today is that we should mobilize."
Two years after taking office, Macron is keen to revive its reform agenda after months of rebuilding political capital and trying to quell anti-government protests against the yellow vest.
Prime Minister Edouard Philippe, however, took care to suspend negotiations with the unions, contrary to the first package of reforms that Macron pbaded through parliament through decrees, exasperating even the most reformist unions.
"A new phase of listening and consultation of social partners and citizens will start on this basis," he tweeted.
The reform is aimed in particular at the "special pension schemes" of SNCF's state rail operator, the Paris-based RATP metro company and public utilities such as EDF, whose regimes pensioners receive 5.5 billion euros each year from taxpayers to fill their chronic deficits.
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