France rolls out new pension reform plans

News


11 Dec, 2019

France rolls out new pension reform plans

The French government’s pension reform plan will officially affect people stepping into the labour market as of 2020, and will not apply to anyone born before 1975.

As reported by French media, further details of the plan are due to be disclosed later on Wednesday.

Public employees have been taking industrial action against the pension reform plan for the past seven days. The reform, backed by President Emmanuel Macron, has prompted unions to call for more strikes on December 12 and December 17, following two mass protests on Tuesday and last Thursday. 

French Prime Minister Edouard Philippe will disclose the details of the government plan to make the country’s elaborate pension systems arrangements more simplified. 

BFM Television also informed the public, amid other media reports, that the new pension regulations will be applicable to those born in 1975, and will only affect pensioners as of 2037.

France Inter radio said the system would impact young people starting a new job as of January 1, 2022, and that as of that date, the government will also launch a minimum pension of €1,000 monthly, for those who worked a full career. 

President Macron is hoping to work towards a simplified system which would include over 40 separate pension plans. A single system based on points would be fairer, he argued, giving each retiree the same rights for each euro contributed. 

Unions believe however, that Macron wants to deprive workers of hard-earned benefits in order to offset the state budget.