French Pension Revaluation Compromise

French Pension Revaluation Compromise

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French Pension Revaluation Compromise

France's revised pension revaluation plan involves a two-stage increase, protecting low-income retirees from inflation while aiming for budgetary savings through administrative streamlining.

French
France
PoliticsEconomyLabour MarketFranceBudgetRetirement
French GovernmentAssemblée NationaleSénatLes Républicains
Laurent Saint-MartinLaurent WauquiezGabriel AttalMichel Barnier
What are the key features of the new pension revaluation plan?
The revised plan involves a two-stage pension increase. The first, covering half of inflation (approximately 0.9%), will take effect January 1, 2025, for all basic pensions. A second increase will apply in July 2025 to lower pensions, ensuring they fully offset inflation.
What is the estimated cost of this revised pension revaluation?
The revised measure will cost between €500 million and €800 million, significantly less than the initial savings projected under the previous plan. Funding will involve rationalizing administrative bureaucracy.
Which pensioners will benefit from the second revaluation stage?
The second increase in July 2025 will target pensions below the net minimum wage (SMIC). This aims to protect those with the lowest pensions from inflation's impact, benefiting roughly 44% of retirees.
What is the overall goal and political context of these pension adjustments?
The changes aim to balance budgetary concerns with the need to protect retirees' purchasing power, especially those with low pensions. The compromise reflects negotiations between the government and Republican deputies.
What is the legislative process for this measure, and what are the potential outcomes?
The proposed amendment will be introduced to the Senate, which will debate it from November 18 to 23. If rejected, the government might resort to a 49.3 motion to pass it into law.