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– The Prime Minister must notably speak on pension reform this Tuesday, January 14 at the National Assembly.
Will the pension reform be put on hold for several months? The answer to this question will have to wait until general policy speech by François Bayrou before the deputies of the National Assembly, Tuesday January 14. One thing is certain: the demand for suspension of reformor rather the ultimatum of the socialist party – which makes it a condition for not censoring the government – is well and truly studied by the executive. The consequences of such a decision, however, are much less obvious.
To get an idea, let’s take a look at pension reform. Effective since September 1, 2023, this text includes two major measures for future pensioners. First of all, it marks the gradual raising of thelegal retirement ageincreased from 62 to 64 years from the generation born in 1968. More precisely, this age limit has been increased by one quarter per year since September 1, 2023. Previously 62 years, it increased to 62 years and three months for people born after August 31, 2023 and up to on December 31, 2023. Then at 62 years and six months for the 1962 generation and now at 62 years and nine months for the 1963 generation.
A contribution period of 43 years for the 1965 generation
Another big change in the pension reform is the increase in the contribution period necessary to leave with the full rate, that is to say with a pension without reduction. Set by the Touraine reform of 2014 at 168 quarters, or 42 annuities, for people born between 1961 and 1963, this duration had to be increased by one quarter every three generations, or to 42 years and one quarter (169 quarters) for the 1964 to 1966 generations, at 42 years and two quarters (170 quarters) for policyholders born between 1967 and 1969, at 42 years and three quarters (171 quarters) for those born between 1970 and 1972 and finally at 43 years (172 quarters) from the 1973 generation.
But this timetable was considerably accelerated by the pension reform, the contribution period for the full rate increasing to 169 quarters for future retirees born between September 1 and December 31, 1961, then increasing by one quarter per year to reach THE 172 quarters from the generation born in 1965. Thus, workers who wish to retire in 2025 must have 169 quarters of contributions if they were born in 1962 or 170 quarters if they come from the 1963 generation. “This 1963 generation must therefore have contributed 170 quarters to qualify for full retirement and can draw up their pension from the age of 62 and nine months”summarizes Valérie Batigne, founder and president of the specialized firm Sapiendo retirement.
Freeze the current limits for the 1963 and following generations
And it is precisely these boundaries that the Socialist Party is asking to be fixed today. “We demand that the extension of the legal age no longer applies to French people who must retire this year and the organization of a conference with the social partners in order to sustainably finance this suspension, details at Capital the Calvados deputy Arthur Delaporte, spokesperson for the PS in the National Assembly. That is to say, to maintain a legal starting age of 62 years and six months, or 62 years and nine months if it is too late, with a freeze on the progression of the legal age over time. Same thing for the contribution period (169 or 170 quarters depending on the year of birth, Editor’s note)”pleads the elected official.
If François Bayrou pronounces the “suspension” of pension reformthis Tuesday, January 14, workers born in 1964 and subsequent years will therefore be able to hope to maintain a legal retirement age of 62 years and nine months at most. The same goes for the number of quarters required for a full-rate retirement, which would remain capped at 170 quarters at most. The reform will still have to be modified, through an amendment to the future Social Security budget for 2025 for example. “If the government is not censored, we will then have to wait for this measure to be integrated into the software of the National Old Age Insurance Fund, which could take several months”she warns. So many reasons which push the expert to recommend to French people who are thinking of retirement not to get too excited too quickly and to “continue to keep in mind the current law and timetable”.
