10 KEY MEASURES OF THE UNIVERSAL PENSION SYSTEM BILL
2022-2025
PROGRESSIVE IMPLEMENTATION OF THE REFORM, BY GENERATION
- Before 1975: Generations not affected.
- From 1975 to 2003: Overlap of old and new calculation rules starting from 2025.
- From 2004 onwards: Generations subject to the new rules from 2022.
POINTS-BASED PAY-AS-YOU-GO SYSTEM: EVERY 1 EURO CONTRIBUTED MUST GRANT THE SAME RIGHTS FOR ALL
- Rights calculated over the entire career (contribution points and solidarity points, consolidated in a single account).
- Exemptions will remain in certain schemes.
62-64 YEARS
LEGAL RETIREMENT AGE SET AT 62
- Temporary removal of the parametric equilibrium age (which would reach 64 in 2027) pending the conclusions of social partners (04/30/2020).
- Early retirement maintained and adapted for long careers, disabled insured persons, arduous work, incapacity, and disability.
INCOME CEILING FOR CONTRIBUTIONS SET AT 120K EUROS GROSS PER YEAR (3 PASS)
- Rights-generating contributions up to 3 PASS.
- Solidarity contribution beyond that, starting January 2025.
2022
EASING THE EMPLOYMENT-RETIREMENT TRANSITION
- Progressive retirement extended to managers on fixed-day contracts from January 1, 2022.
- Combined employment-retirement generating new rights for insured persons who have acquired their pension at the legal age and at the full rate.
SURVIVOR’S PENSION
- 70% of the couple’s combined pensions
- Without means-testing.
- Accessible from age 55. Minimum marriage duration of 2 years.
- Only for surviving spouses of insured persons covered by the Universal System.
SOLIDARITY
- Minimum pension progressively raised to 85% of the minimum wage for a full career by 2025.
- Allocation of points, funded by national solidarity, for individuals in situations of unemployment, illness, maternity, or disability.
FAMILY BONUS
- A 5% bonus granted from the first child and for each child (by default to the mother).
- An additional 2% for large families (3 or more children) – By default: 1% for the father and 1% for the mother.
- Bonus points awarded in cases of career interruption for childcare.
28.12%
CONTRIBUTION RATE
- 90% of rights-generating contributions and 10% non-rights-generating contributions.
- Progressive transition over 10, 15, or 20 years planned by ordinance for civil servants, certain liberal professionals, and agricultural operators.
- Self-employed: 28.12% up to 1 PASS – 10.13% between 1 and 3 PASS.
SPECIAL SCHEMES
- Progressive phasing out of former categorical early retirement provisions, over a period of 15 years.
IMPLEMENTATION TIMELINE FOR THE UNIVERSAL SYSTEM
December 2020
- Creation of the National Universal System Fund and establishment of governance
2022
- Entry into the universal system for insured persons born from 2004 onwards
- Easing of employment-retirement transitions
- Minimum pension
2025
- Entry into the universal system for insured persons born from 1975 onwards
- Beginning of age-related transitions
- Beginning of contribution-related transitions
REGULATORY TIMELINE FOR THE BILL
- January 30 to end of April 2020: Funding conference and negotiations on the terms for restoring the system’s financial balance
Document prepared in January 2020 by France-Retraite www.france-retraite.fr
