Pension reform: a set of measures applicable on 1 September

Of the 31 statutory instruments foreseen for the implementation of the pension reform, so far 18 have been published in the Official Journal. The decrees published on 30 July, 11 August, 22 August and 31 August 2023 concern in particular: the abolition of four special schemes; the upgrading of minimum pensions; the expansion of the phased retirement scheme; job-pension cumulation; the prevention of occupational wear and tear; the prevention occupational account; the creation of the carers’ old-age insurance; the creation of the orphan’s pension under the general scheme; a parental benefit scheme; the buy-back of reduced-price quarters for higher education or traineeships; and the taking into account of periods worked under work contracts collective utility (TUC).

Abolition of four special schemes

The four special schemes abolished are those of the Régie Autonome des Transports Parisiens (RATP), the electricity and gas industries (IEG), clerics and notary employees (CRPCEN) and the Banque de France.

Persons recruited from 1^er September 2023 will therefore be affiliated to the general scheme for their basic pension and to the supplementary scheme corresponding to their activity (Agirc-Arrco for employees of RATP, IEG, notarial studies and Banque de France).

Persons hired before 1^er September 2023 remain affiliated with their special scheme, in line with the so-called “grandfather” clause. However, their legal age of departure will be gradually reduced by two years, for example from 52 to 54 years for drivers and from 57 to 59 years for some maintenance workers.

The Ministry of Labor also reported that the Prime Minister had "Urges the Economic, Social and Environmental Council (EESC) by letter to amend its pension fund rules".

Revaluation of minimum pensions

The minimum pension is increased to EUR 100 gross per month for persons retiring from 1^er September 2023. This includes employees, craftsmen and traders and farmers who have worked at the SMIC all their lives and have a full-time career.

Moreover, the minimum pension is now indexed to the SMIC, not inflation.

An increase in minimum pensions is also planned for those who retired before 1^er September 2023. The Ministry of Labor has indicated that some of them will receive this revaluation as of autumn 2023; the others as of spring 2024 with retroactive effect to 1^er September 2023. This temporal difference in the payment of the valuation is explained by the analytical work needed to determine who is entitled to it.

Expansion of the phased retirement scheme

Access to gradual retirement is widened: hitherto only for employees, craftsmen and traders, the scheme is extended from 1^er September 2023 to public servants, liberal professionals and lawyers.

The employer must now justify that the part-time work requested by the employee is incompatible with the economic activity of the company. The absence of a reasoned written response from the employer after two months shall be deemed to be an agreement.

New rights linked to job-pension cumulation

Job-pension cumulation allows a retired person to work and to receive both his occupational income and his retirement pension.

From 1^er september 2023, job-pension stacking creates new pension rights. Until now, this contributory income did not give rise to any entitlement to an additional pension. It is now possible to apply for a ‘second pension’ calculated on the basis of the same rules as the first pension at the end of a period of employment-pension accumulation, subject to certain conditions.

Prevention of professional wear and tear

An investment fund for the prevention of occupational wear and tear is set up to improve the prevention of exposure to occupational risk factors known as ‘ergonomics’. These include heavy lifting, strenuous postures or mechanical vibration. This fund is intended in particular for employees exposed to ergonomic risks who wish to initiate a vocational retraining procedure.

Moreover, employees exposed to the risk factor "night work" will be able to earn hardship points from 100 nights a year (up from 120).

Preventive Business Account Enhancement

The number of points earned on a preventative work account now increases in proportion to the number of risk factors to which an employee is exposed. For example, an employee who is exposed to three risk factors at the same time acquires 12 points per year, or 1 point per exposure quarter for each risk.

Each point allows an employee to contribute 500 euro (375 euro) to his personal training account before 1^er September 2023). Ten points allow any holder of a prevention business account to benefit from the equivalent of half a time for 4 months (instead of 3 months, before 1^er September 2023).

Creation of the caregiver’s old-age insurance

Old-age insurance entitlements are open to new carers:

• parents of a disabled child whose disability rate is less than 80 % but who are eligible for the supplement to the education allowance of the disabled child;
• caregivers of an adult with a disability who do not live together or have no family connection with the person being assisted, but who have a stable and close connection with the person being assisted.

Parents of children who are beneficiaries of the disability compensation benefit, for example, are thus given pension rights under the general scheme.

Creation of an orphan’s pension under the general scheme

From 1^er september 2023, the children of an insured person under the general plan are entitled to a pension for each deceased parent. Some schemes, such as the civil servants' scheme, already allowed orphans to receive part of the retirement pension of their deceased parent.

The orphan's pension may be paid up to 25 years on the condition of means, in particular for students and without any age limit for orphans with a disability of more than 80% before their 21st birthday.

A Parent Bonus

Some parents will be able to see their pension increased. This premium applies to mothers and fathers who have reached full insurance (43 annuities from 2027) one year before the statutory retirement age (64 years for persons born from 1^er January 1968) and who are entitled to at least one additional term of insurance for maternity, adoption or upbringing of the child.

Their basic retirement pension can thus be increased by 1.25% per additional quarter worked between 63 and 64 years of age, thus 2.5% for two quarters and up to 5% for a whole year.

In addition, daily allowances received by women who had one or more children before 1^er January 2012 are now included in the reference salary used to calculate their retirement pension. This was already the case for children born from 1^er January 2012.

Redemption of discounted terms for higher education or internships

From 1^er in september 2023, it is possible to buy back at a reduced price quarters for a paid internship in company until 31 december of the year of his 30th birthday. Previously, this had to be done at the latest two years after the end of his internship. Reduced-cost redemptions for higher education terms can now be made until 31 December of the year of his 40th birthday, instead of 31 December of the 10th year following the end of the studies in question.

Taking account of periods worked under collective service contracts (UTC)

The UTC contracts were in force between 1984 and 1990. They were reserved for young people between the ages of 16 and 25 and were exempt from contributions. The periods during which persons were employed under this contract were therefore not taken into account in the calculations relating to their retirement.

From 1^er in september 2023, these individuals are entitled to quarters of retirement in respect of the periods worked under this contract.

This development is also relevant to:

• ‘young volunteers’ traineeships;
• traineeships at the company of the Barre plan;
• work-life training courses;
• and Local Integration Programs (LIPs).

These four schemes existed between 1977 and 1992.

To learn more as the pension reform is implemented, you can consult the sheet of Service-Public.fr How to find out about your retirement?