Laurent Berger (Cfdt), Francois Asselin (Cpme) and Geoffroy Roux de Bezieux (Medef) during a press conference on the pension reform financing conference on January 30, 2020. - Jacques Witt / SIPA

Installed at the end of January by Prime Minister Édouard Philippe, the "financing conference" responsible for bringing the pension system back to balance by 2027 will start its work on Tuesday, the social partners having to meet six times by April .

Trade unions (CFDT, CGT, FO, CFE-CGC, CFDT, Unsa) and employers' organizations (Medef, CPME, U2P, FNSEA) are invited to two working groups at the Ministry of Solidarity in Paris. One has been in progress since 9:30 am on Tuesday, the other will be held this Thursday at the same time.

Present alternative measures to the pivotal age

This Tuesday's meeting is working on the means of absorbing, in the short term, the expected deficit at “12 billion euros per year in 2027”, according to Edouard Philippe, the second relating to the financial management of the future universal point system.

This “conference”, initially suggested by the CFDT, should allow the social partners to present alternative measures to the pivotal age, below which it is not possible to leave with a full pension, but without touching the level pensions or labor costs.

But "before talking about cocktails of measures, we need a shared diagnosis," warned the secretary general of the CFDT Laurent Berger, in an interview with the Journal du dimanche. "We asked for several figures to assess the reality of the short-term imbalance and the cost of the new provisions," he said.

A cumulative deficit of 113 billion euros by 2030 ... if nothing is done?

According to documents sent to the social partners before the meeting, consulted by AFP, if nothing is done, the cumulative deficit between 2018 and 2030 could reach 113 billion euros.

This calculation was made on the basis of the report of the Pensions Guidance Council (COR), delivered in November, which had estimated between 7.9 billion and 17.2 billion euros the deficit of the pension system in 2025.

"If there is a shortfall in revenue due to a disengagement from the state, is it the workers to pay? No, "added Laurent Berger, while the downsizing and small salary increases planned for civil servants lead to a reduction in pension resources.

"The State must pay its debts," added to AFP the CFTC negotiator, Pascale Coton, with reference to the "relief contributions" social not compensated by the State. Draw from the retirement reserves fund, raise the income ceiling subject to contributions ... Various avenues must be studied.

Opposed to the reform in its very principle, the secretary general of FO Yves Veyrier explained that his union would go to the working groups "to monitor what is said and what is done there because we do not have the intention that social mechanisms be spoiled, diverted, to make up such or such pension contribution ”.

A final document to be submitted at the end of April

Working sessions are scheduled for March 10, 12, 24 and 25, with a view to a plenary session in early April and before delivery of a final document in late April. Edouard Philippe assured that if the "conference" resulted in a compromise, he "would endorse these proposals".

The pension reform bill, currently under consideration in Parliament, provides that the government, within three months of the text's vote, will issue an order to "achieve financial balance" in 2027.

As it stands, the pension reform that is being debated has little impact on the projected deficit by 2027, it is specified in the working document given to the unions.

By 2030, the impact of the universal points system would lead to an increase of 330 million euros in expenses, linked to the improvement of pension minima and measures on progressive retirement, and to a gain of 900 million revenue, mainly due to the increase in social security contributions for certain categories, is it calculated.

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  • Society
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  • Pension reform
  • Funding
  • Retirement