Universal Pension Plan Bill

10 MAJOR MEASURES OF THE UNIVERSAL PENSIONS BILL

 

2022-2025

GRADUAL APPLICATION OF THE REFORM, ACCORDING TO THE GENERATIONS

  • Before 1975 : Generations not affected.
  • From 1975 to 2003 : Superposition of the old / new regime calculation rules from 2025.
  • From 2004 : Generations affected by the new rules from 2022.

 

POINT ALLOCATION SYSTEM: 1 € CONTRIBUTED MUST GIVE THE SAME RIGHTS FOR ALL

  • Rights calculated over the entire career (contribution points and solidarity points, included in a single account).
  • Exemptions will remain in certain regimes.

 

62-64 years

LEGAL DEPARTURE AGE SET AT 62

  • Temporary suppression of the parametric equilibrium age (who would turn 64 in 2027) pending the conclusions of the social partners (04/30/2020).
  • Early departure maintained and adapted for the long careers, the disabled insured, the hardship , the incapacity , and the disability.

 

REVENUE LIMIT FOR CONTRIBUTIONS SET AT € 120K GROSS ANNUAL (3 PASS)

  • Contribution constituting rights up to 3 PASS.
  • Solidarity contribution beyond, from January 2025.

 

2022

EMPLOYMENT-RETIREMENT TRANSITION FLEXIBILITY

  • Progressive retirement extended to executives for a day package since the 1 er January 2022.
  • Combination of employment and retirement rights generator for insured persons who have acquired their pension at the legal age and at the full rate.

 

REVERSION

  • 70% couple’s pensions
  • Without means test .
  • Accessible from 55 years. Marriage duration of 2 years minimum .
  • Only for surviving spouses of beneficiary insured member of the Universal Regime.

 

SOLIDARITY

  • Minimum pension gradually increased to 85% of the minimum wage for a full career in 2025 .
  • Allocation of a number of points, fi nanced by national solidarity, for people in a situation of unemployment, sickness, maternity, invalidity .

 

FAMILY MAJORATION

  • Bonus of 5% granted from the first child and for each child (default for the mother).
  • 2% additional for large families (3 children and more) – Default: 1% for the father and 1% for the mother.
  • Bonus points awarded in the event of interruption of activity for the education of children.

 

28.12%

CONTRIBUTION RATE

  • 90% contribution creating rights and 10% not creating rights.
  • Gradual transition to 10, 15, or 20 years old prescribed by ordinance for officials , some liberal professions and farmers .
  • Independent : 28.12% until 1 PASS 10.13% between 1 and 3 PASS.

 

SPECIAL DIETS

  • Gradual extinction former categorical early departures, on a 15 year period .
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THE UNIVERSAL REGIME APPLICATION TIMETABLE

December 2020

  • Creation of the National Fund of the Universal Regime and establishment of governance

2022

  • Entry into the universal system for insured persons born from 2004
  • Easing work-retirement transitions
  • Minimum pension

2025

  • Entry into the universal system for insured persons born from 1975
  • Beginning of age transitions
  • Beginning of contribution transitions

 

THE REGULATORY TIMETABLE OF THE BILL

  • January 30 to end of April 2020: Funding conference and negotiations on the modalities for returning the system to equilibrium

 

Document produced in January 2020 by France-Retraite www.france-retraite.fr