Pension reform: what to remember from the proposals of the Institute for Social Protection

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Talks have resumed. This Monday, November 21, 2022, unions and the executive are meeting around the thorny pension reform. According to exclusive information from Europe 1 and Le Figaro, the Institute for Social Protection (IPS) has presented nine measures in this direction. Among them, three are considered to be the main proposals around the accumulation of employment and retirement, the retirement age or even early retirement. Jean-François Chauffeté, founder and director of Expertise Optimization Retraite, helps Planet readers better understand the ins and outs of the ideas laboratory’s suggestions.

The first measure proposed by the Social Protection Institute (IPS) concerns the possibility of early retirement from the age of 45, and for a maximum period of two years. To do this, it will be necessary to respect a certain number of conditions, including that of having sufficiently contributed. According to the institute, such a measure would allow French men and women to be more flexible in their career choices and, possibly, professional retraining.

An advantageous possibility, but not without consideration. Employees who would use this possibility would then be forced to see the legal retirement age postponed by two years. “For example, if an employee decides to take early retirement at 45, and the legal retirement age is 64, he will have to retire definitively from the age of 66”, write our colleagues from Europe. 1.

“If we push this kind of reasoning, we can use unemployment to make a professional retraining”, comments Jean-François Chauffeté. For the specialist in retirement info, questions remain unanswered: “Do they receive their retirement from their first half of life? Do we suspend them for the two-year retirement period and then we takes back the salary?” he asks.

Regarding the postponement of the legal age, the specialist believes that it is a “fair consideration”… But what about the second flagship measure of the IPS?

The second flagship recommendation of the Institute for Social Protection aims to facilitate multiple employment and retirement. It would be a question of making it possible without conditions for all professions, and from the legal age of retirement. According to the IPS, such a provision aims as much to improve the employment rate of seniors as to limit labor shortages in many sectors.

For the pension specialist, such a measure has the advantage of transparency: “The rules are different for everyone, depending on professions and careers, there are a lot of misunderstandings, not everyone can combine jobs. -retirement and some forbid it because they don’t know they can,” says Jean-François Chauffeté.

Before commenting: “Today, when you combine employment and retirement, you continue to contribute to your retirement while the rights are not valued. All these contributions are lost”.

The last key measure of the institute concerns the financial balance of retirement accounts.

To finish the podium, the institute proposes “to inject a dose of collective capitalization into the compulsory schemes for a better financial balance of the retirement accounts”, writes Europe 1.

“What would change for the employee? He would finally have a capital in front of his contributions, real money. Today when we contribute, we have points, it’s virtual, we can give them the value that we We contribute without revaluing the contributions to purchasing power, to economic reality”, regrets the specialist.

Among the other proposals of the IPS, there is also the postponement of the legal retirement age to 64 in order to balance the accounts and “maintain the standard of living of pensioners”.