Pensions: the Monitoring Committee noted an “improvement” – Le Figaro

The monitoring committee of pensions notes a “slow but significant improvement” of the financial equation of the pension system, consider leaving with “serenity” the “changes” still needed in its third notice delivered Monday to the Prime Minister. This five-member committee, created in 2014, must assess each year by July 15 if the system meets the three objectives set by the law. Living standards of retirees, fairness between policyholders, financial sustainability

As the two years earlier, it does not make recommendations, considering that “the situation and perspectives of the pension system does not depart significantly” these goals. It nevertheless carries some observations on the consequences of the forecasts of the Board of the Pensions (COR). According to the annual report of the NRC, already public, the deficit of the system (all schemes and old age Solidarity Fund included) would be reduced to about 2020 to -0.2% of GDP, or about $ 4 billion, better than expected. In the scenario of an unemployment rate stabilized at 7% and a minimum growth of 1.5% of earned income, the system would return to equilibrium in the mid 2020s and would become surplus in the longer term.

“the results are slow but significant improvement, reflecting reforms made during the last decade” reforms of 2010 and 2014 and agreement on supplementary pensions end of 2015, notes the monitoring committee. “Once a growth of around 1.5% productivity is achieved by long-term average,” these reforms guarantee “a change in the level of pensions that meets the requirements of fairness between generations,” he wrote . But the Committee notes that the system balance remains extremely dependent on this growth, with different consequences depending on whether productivity is below or above this threshold. Below, the financial balance “could not be achieved without additional measures,” the committee. In addition, the challenge would be another “contain dropping” between income assets and pensions.

The current system provides for ten years “replacement rate consistent with the objectives”, that is to say an average pension the first year of retirement that is greater than two thirds of the last net salary . This objective would provide long term complied with growth exceeding 1.3% revenue committee warns. However, “whatever the economic scenario, the current situation is possible to foresee with reasonable serenity developments that are driving” in order to “enhance the overall confidence in the system is probably stronger today and financially less unfair than the often think our citizens. ” The committee cited the one hand, the revision of terms of wage indexation considered for the calculation of pensions “to ensure lower sensitivity of the system to growth.” On this point, he welcomed the studies are launched. It suggests, on the other hand, continue to “significantly closer” the various schemes in “harmonizing family benefits and survivors’ benefits” and bringing the calculation methods “to make the system more readable and easier to steer” including for civil servants

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