Pension Reform: A Look at the Key Changes

A series of decrees implementing the pension reform was published in the Official Journal to supplement the initial texts issued earlier this summer, which abolished the special pension plans and raised the legal retirement age from 62 to 64. 
 

This new wave of decrees specifically concerns the increase in small pensions, adjustments related to arduous working conditions, the combination of employment and retirement, and the establishment of a pension for orphans.

One of the decrees published aims to raise the minimum pension amount, increasing it "by 100 euros per month for people retiring on or after September 1, 2023," according to a statement from the Ministry of Labor. This will benefit approximately "200,000 retirees each year, or about one-quarter of those retiring." Going forward, this minimum pension will be “indexed to the minimum wage (SMIC), rather than to inflation.” In addition, nearly 1.7 million current retirees will see their pensions increased, including 700,000 as early as this fall.
 

The rules regarding working while receiving a pension have also been amended, allowing retirees who return to work to increase their pension. Under certain conditions, they will be able to apply for a “second pension” recalculated according to the same rules, the ministry states. This measure currently affects approximately 500,000 retirees.
The option for phased retirement is being extended to civil servants and self-employed professionals, and access to it is being “made easier” for employees, as employers must now “justify their refusal.”

An “Investment Fund for the Prevention of Occupational Wear and Tear” (Fipu) has been established, with a budget of one billion euros over five years. This fund will finance initiatives within companies and industries aimed at preventing “ergonomic” risk factors such as awkward postures, vibrations, and heavy lifting, among others.
The “Occupational Prevention Account” (C2P) is also undergoing adjustments: the thresholds associated with risk factors such as “night work” and “rotating shift work” are being lowered, from 120 to 100 nights per year and from 50 to 30 nights per year, respectively.
 

For employees simultaneously exposed to multiple risk factors, it will be possible to earn additional points in order to temporarily work part-time and contribute to their personal training account (CPF). In addition, C2P holders will now be able to consider a career change.
Young people under the age of 21 who have lost both parents as of September 2023 will be eligible for an “orphan’s pension” until age 25, subject to means testing, or without an age limit in cases of severe disability.
These new decrees also grant new rights to certain categories of caregivers, notably “parents of children with disabilities who have a disability rating of less than 80% but are eligible for the supplement to the education allowance for children with disabilities (AEEH),” as well as caregivers of adults with disabilities who do not live with them but with whom they maintain a “stable and close relationship.”