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Emmanuel Macron’s government is preparing to embark on a major project on pension reform , a very sensitive and complex subject in France. The proposed plan aims to introduce a point-based pension system, replacing the existing annuity system, with the aim of addressing inequalities between public and private careers. To shed light on this case, your lawyer, a recognized specialist in French law, will provide you with an explanation.
Emmanuel Macron’s plan for pension reform : –
The existing pension system in France includes 42 special schemes which, at first glance, are not to be called into question. However, the introduction of the points system may have wider implications. In this new system, taking retirement age into account would no longer be essential, as the accumulation of points is not linked to the number of years worked. This would allow individuals to make retirement decisions based on their own assessment of accrued points and desired pension amount. The crucial question that remains unanswered is whether or not a minimum retirement age will be maintained.
The points-based pension system and its implications:-
Currently, a major citizen consultation is underway and will continue until the end of October. Consultations with the social partners will follow and, ultimately, the project will be presented to Parliament between 2019 and 2020. However, the persistent health crisis caused by the coronavirus pandemic has caused a delay in the implementation of the reform.
The proposed reform aims to bridge the disparities that exist between public and private careers by introducing a point-based pension system. By removing the focus on age and incorporating a flexible approach, individuals would have more control over their retirement decisions, determining when they have accumulated enough points and reached the desired pension amount. This system also aims to reduce inequalities by offering a homogeneous framework for retirement benefits across the various career paths.
Nevertheless, challenges remain in the reform process. The current system includes 42 special schemes, which cater to specific professions or sectors. These special regimes are expected to remain intact, raising concerns about the potential impact of the points system on their operations. Finding a balance between reforming the pension system and respecting these specialized schemes will be a delicate task.
In order to ensure a global and inclusive approach, the government initiated a citizen consultation, allowing individuals to express their opinions and concerns regarding the reform project. This process aims to gather valuable information from the public before finalizing the project. Subsequently, the social partners will be consulted, engaging relevant stakeholders and organizations in the discussion. Eventually, the completed draft will be presented to Parliament for further deliberation.
The unforeseen challenges posed by the ongoing health crisis have led to a delay in the implementation of the reform. However, it is crucial to address this issue effectively, as pension reform plays an important role in ensuring a fair and sustainable pension system for all French citizens. The coming months will be key in shaping the future of pension regulation in France .