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Pensions: the hard-rocking contributions employer State in the new universal system

The State employer contributes to the pension of his agents 75% by year - 74,8% Figaro exactly - plus 11,10% of employee contributions in 2020. A contribution

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Pensions: the hard-rocking contributions employer State in the new universal system

The State employer contributes to the pension of his agents 75% by year - 74,8%


exactly - plus 11,10% of employee contributions in 2020. A contribution is huge, which is also an equilibrium contribution because the pensions of the agents of the State, more generous in their calculation, does not balance with the rate of contribution of the normal and the plan is in a deficit of population (ratio of population contributors/pensioners of 0.93 against 1.30 for the general scheme).

see also : pension Reform: a prohibitive cost

In the new system, the State shall make contributions as other employers. These are articles 13, 17 and 18 of the draft law, which has been unveiled by the government which set out these principles:

article 13 describes the rates and bases of contributions, as well as the sharing of the burden between employer and employee.

● The system of universal pension is funded by social security contributions calculated in the limit of three times the amount of the annual ceiling for social security (PASS).

● A decree shall determine the total level of the contribution rate of the pension to 28,12 %.

● This level will be shared 60% employer and 40% to the insured, as today. This contribution rate is the level which is already subject employees.

article 17 says that, with the establishment of the universal system, it is expected to take into account the full compensation paid in the calculation of pension rights, and, therefore, allow the officials to open up the rights on their premiums. And article 18 states that the government will define the conditions of convergence of the scheme contribution of these officials to the target system, in the framework of a transition period not to exceed fifteen years.

Decrease in sudden and massive contribution employer

Problem: this will lead to a reduction in sudden that massive contribution employer of the State: the impact study shows that the contribution employer in the public service of the State will earn in 2025 before it switches to 55 billion euros, and only 14.6 billion euros in the new system.

In the section on the budgetary impact of the reform, the impact study says that the overall contribution of the State will be maintained. "In the future this contribution will be fully preserved in 2025". Of course. But the study does not specify its evolution beyond 2025.

just us-he said that this contribution "will evolve then according to the nature and dynamics of the expenditure it is intended to cover (like rights of common, and departures of the active categories, taking into account the difficulty in the public service, specific rights in extinction...)."

however, this contribution of balance currently found in the account of the trust of the public pensions has so far increased exponentially. Between 2008 and 2018, the rate of increase was approximately one billion more per year.

see also : "A perverse effect of the pension reform: the social elevator still more fragile -"

in addition, the government is negotiating with public officials, announces many compensations, and guarantees the maintenance of the level of pensions, even going so far as to imagine a transition that would calculate the vested interests in the current system for public employees over the last six months of the career projected, and not on the real life in 2024 at the time of the switch (clause in Italian), with the goal that the agents in the early/mid-career are not penalized.

Remains to be seen how much it will cost. A lot more than the $ 55 billion announced in any case. And when this will be in the great cauldron of the universal plan, it will be difficult to find!

It should therefore be a true impact study in the matter, with a projection until 2067, the date on which the last of the officers have started their careers in the old system will retire.

as long As we will not have more information on the sustainability of the regime and on the transition of the billions of contributions to the new pension system, we will not be able to say that as the Council of State: "the financial projections remain incomplete". Hence the 3/10.

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