Pension reform : who is telling the truth on the future pension of women ?

According to calculations from the Institute of social protection, some mothers may see their pensions decrease by 10 %. False, says the government.

The mothers of families could see their retirement funds vanish with the implementation of the universal regime by points ? This is affirmed by the Institute of social protection (a think tank composed of experts-accountants and specialists of social protection) in a note issued on 26 November. Problem : they say the exact opposite of what is claimed by the government, which insists that the reform is favourable to women and which challenges the analysis of the IPS.

According to the calculations of the latter, the pensions of women would fall by 10% in some cases. It takes the example of a woman separated from the father of her child, who has contributed for 152 quarters on the basis of an average of 25 000 euros of annual salary. If she wants to retire at age 62, his pension will be 12 497 € per year (1 041 € per month) after the reform : it is 1 € 250 less (- 9 %) today.

The pensions of women lost 10% ?

Another example : a couple with three children in which both spouses have contributed for 162 quarters on the basis of an annual average of 35 000 €. Today, if they want to retire at age 62, their pension will be 26 456 € per year for it, and 22 350 € for him (she has in fact 12 additional quarters under its three maternity hospitals). With the reform, their pension will be increased to 20 423 € for it, 17 759 € for him, which is a decrease of 10 624 € (- 21,77 %) for the couple.

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DECRYPTAGE >> Pension : the parents of three children will cringe

"These estimates are based on the future conditions of the granting of the "family rights" can be found in the report submitted by Jean-Paul Delevoye, high-commissioner of pensions, in July last," says the director Bruno Christian, president of the IPS. It provides that the surcharge of 10 % of the pension granted to both parents as soon their third child will be replaced by a gradual increase of 5 % per child for a two parents. In addition, the three bonus granted to mothers (4 quarters at birth and 4 quarters in respect of education) and fathers (4 quarters education) will be replaced by a system of bonus points which the mechanisms are not yet known. (Read the box).

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"The establishment of an 'age pivot' set to 64 in the report, and the loss of quarters bonus will require mothers to work longer to get a pension at the full rate. This goes against one of the announced goals of the reform," says Bruno Christian. According to the government, it is expected to reduce the pensions gap between the poor and the wealthy, between men and women, support to families and allay the fear of widowhood.

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"A pitch-and part-voluntarily-load"

The mothers are not the only ones concerned. The widows have also a lot to lose from the reform because of the new terms and conditions for granting survivors ' pensions (of which 89 % of the beneficiaries are women). "With the decline of the right to reversion of 55 years to 62 years, many widows are likely to find themselves without a pension," explains Bruno Christian for whom it is a social setback important that deserves to be discussed."

The reaction of Jean-Paul Delevoye was not long in coming : on the same day of the publication of the report of the IPS, the high commissioner for pensions was criticised for "simulations that are incomplete and which do not take into account the solidarity instruments in the system of universal pension," pointing to "a line of argument that partial and voluntary support".

The high commissioner criticized the experts of the IPS of having "deliberately directed" reflection, "by retaining the case of a woman born in 1963, retiring at age 62", so not taking into account "the variety of ages of onset." In fact, 1963 is a pivotal year : the generations born before will not be affected by a reform to come into force on January 1, 2025 (if this date is accepted).

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The release of Jean-Paul Delevoye are mainly two important elements : the high commissioner admits, in a hollow, it will be necessary to work beyond the age of 62 years to receive a good rate of replacement. He then adds that "to calculate a pension with the rules of the future system, it should be applied retrospectively at his career, according to rules which are not here specified." Neither here, nor elsewhere. Many elements are still unclear. "We chose the tracks that seemed the most solid in the report submitted by Jean-Paul Delevoye in July 2019 and in the various subsequent speech, explains Bruno Christian. The problem is that one hears especially of the great principles. On a topic as central as retirement, settle for it by refusing to give figures, generates anxiety."

the case of reversions, the high commissioner said that a mission is entrusted to the general Inspectorate of the businessres social "to ensure that persons who are victims of these situations of widowhood early the solidarity of the Nation". Proof, according to the IPS that it has raised a hare.

pension Reform : what changes for women

... MOTHERS

• retirement a mother today

Plan of Insurance basic old-age

- Bonus of 4 quarters for the birth, and 4 quarters for the education of a child.

- a 10% increase in pension from the 3rd child (granted to the mother and the father).

supplemental Plan Agirc-Arrco

- 10 % of extra pension for the mother and the father, in the limit of 2 072,66 € per parent.

• The retirement of a mother in the future regime universal

- The quarters provided under the birth and education of a child will be replaced by subsidies of points the number of which remains to be determined.

- 5 % of gross pension per child for a two parents : the choice will have to be done prior to the 4th birthday of the child. Otherwise, the increment will be automatically awarded to the mother.

- The increase in pension by 5 % per child (5 % for the 1st child, 10 % for 2nd, 15% for the 3rd, 20 % for 4th, etc.) may be capped beyond a certain number of children (which remains to be defined).

... PENSION REVERSION

• The survivor's pension today

Plan of Insurance basic old-age

- 54 % of the basic retirement pension of the deceased spouse.

- Its annual amount shall not, in 2019, to be less than 3 444,02 € and above 10 941,48 €.

- The beneficiary must have been married to the deceased spouse (the Pacs and concubinage are not taken into account). It must be aged at least 55 years of age and have an income of less than 20 862,40 € if he lives alone, 33 379,84 € if it is in a couple (pensions included).

supplemental Plan Agirc-Arrco

- 60 % of the supplementary retirement pension of the deceased spouse, without conditions of resources.

- The recipient must be 55 years of age if the death occurred after January 1, 2019. But this condition is canceled if the surviving spouse is an invalid or has two dependent children at the time of death.

- The divorced spouse and remarried, may not take advantage of this reversion.

• The survivor's pension in the future regime universal

- the amount of the pension will represent 70 % of the pension rights of the couple.

- The beneficiary must be age 62 years or older and be married to the deceased spouse.

Read our complete file

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The survivor's pension will be granted without conditions of resources.