France: The Retirement Reforms at the heart of the political debate
The political, legislative and social scene in France has been dominated by the debate around the retirement reform. Despite the strikes, the government has moved ahead with its planned reform to implement “a common universal system”. Here is a rundown of the key points of the proposed retirement reform:
- In the universal pension system, pension rights will be calculated in points. These points will be acquired throughout working life and will be recorded in the personal account of the insured individual.
- The contributions used as a basis for calculating pension rights will be calculated within the limit of 3 times the amount of the annual social security ceiling. A decree will set the total level of pension contribution rates at 28.12% (60% for employers and 40% for insured persons).
- The reform states that the retirement age is 62, but takes into account long careers: individuals will be able to retire from the age of 60, subject to proving a duration of activity equal to 516 months of contributions.
- The reform takes into account the difficult and dangerous nature of certain professions.
The government’s bill proposal will now make its way through the legislative process after having been analysed by the Conseil d’Etat.