PENSION REFORM

THE ANNOUNCEMENTS OF EDOUARD PHILIPPE

"The system will be the same for all French, without exception, instead of being organized by statute. The time of the universal regime has come, that of the special regimes ends, "he summarized.

He responded to his political opponents by assuring that "the ambition of universality carried by the government is an ambition of social justice. We do not stigmatize anyone (...) There will be no winner, no loser ".

Here are the broad outlines of his intervention :

1 ° French born before 1975 not concerned

Workers born before 1975 will not be affected by the new universal system, the prime minister explained. "Those who enter the job market in 2022 will integrate the new system. The 2004 generation will be the first to integrate the universal pension system from its first job, "he added.

For the others "the transition will be very gradual," he added, assuring that "all the part of career carried out until 2025 will give rise to a retirement calculated on the old rules" and that "only the years worked from of 2025 will be governed by the universal system ".

2 ° The implementation of a point system in a PAYG pension

The Prime Minister has confirmed the implementation of a pension system by points, not by quarters. The social partners to set the value of the point "under the control of Parliament", a value that should not decline since "the law will provide a golden rule that the value of the acquired point can not decline" with "a non indexation not on the prices but on the wages which in our country increase more quickly ", affirmed Edouard Philippe

3 ° The suppression of special diets

The phasing out of the 42 existing pension plans, including the special plans, will take place. "We will end special regimes", but "gradually, without brutality, with respect," said the prime minister.

4 ° A minimum pension at 1000 euros

A minimum pension of 1000 euros net per month for a full career at SMIC will be guaranteed. This minimum pension "will be guaranteed by the law to 85% of the minimum wage and will evolve like this one", added the Prime Minister

. "The universal system will better protect the most fragile French, who are too often forgotten in the system," he pleaded. Good news especially for farmers and women whose pension level is often lower than this amount.

5 ° A legal age at 62 and a pivotal age at 64

The prime minister said that the legal age of departure will be maintained at 62 years while a pivotal age will be introduced at 64 with a "bonus-malus" system. "To reach the age of equilibrium of 64 years in 2027, we will have to set up a system of bonus-malus that will encourage the French to work longer," said the Prime Minister.

Firefighters, gendarmes or the military will retain the benefits of age. They will continue to benefit from the bonuses. For carers, the thresholds will be adapted for the recognition of hardship and devices can be put in place to offer a part-time without loss of salary at the end of career.

6 ° The "rich" put to work by solidarity

"Beyond 120,000 euros annual income, the richest will pay a higher solidarity contribution than today," said Édouard Philippe. These remarks repeat the report of Jean-Paul Delevoye who suggests that these high-income continue to contribute beyond 120,000 euros up to 2.81%.

The draft law on pension reform will be submitted to the Council of Ministers on January 22, 2020 and discussed in Parliament at the end of February, said Edouard Philippe.

"The pension reform bill will be ready by the end of the year, we will submit it to the Council of Ministers on 22 January 2020 and it will be discussed in Parliament at the end of February," said the head of the government.