Latest Updates on Pension Reform: Revaluation of Minimum Pension, Combination of Employment and Pensions, and More!

2023-08-11 17:43:00

This Friday, August 11, 2023, six implementing decrees for the pension reform were published in the Official Journal. They will come into force on September 1st and concern in particular the accumulation of retirement employment, professional wear and tear or the revaluation of the minimum pension.

Three weeks before the entry into force of the pension reform, six new decrees were published in the Official Journal this Friday, August 11.

The revaluation of the minimum pension

Are affected by this decree, employees, craftsmen and merchants earning the minimum wage with a full full-time career. The minimum pension will thus be increased to “up to 100 euros per month” for people who will retire from September 1. This is equivalent to a revaluation of 1200 euros over one year.

According to the Ministry of Labour, Integration and Full Employment, “nearly 1.7 million retirees” will benefit from it, including 700,000 from next fall. The next revaluations will take place in the spring of 2024. From now on, this minimum pension will be indexed to the minimum wage and no longer to inflation.

Combination of employment and pensions

This major theme of pension reform will concern around half a million pensioners. The decree explains that from September 1, people already retired and resuming an activity, will be able to acquire new rights.

The Ministry of Labor clarified in particular that at the end of a period of combined employment and retirement, it will be possible, under certain conditions, to request a ‘second pension’ calculated on the basis of the same rules as the first pension.

The progressive retirement scheme

Extended on September 1 to civil servants, liberal professionals and lawyers, this device will allow them to reduce their professional activity while receiving part of their retirement, “from two years before the legal age”, according to the ministry.

Prevention of occupational wear and tear

An investment fund in the prevention of professional wear and tear will be created and “endowed with one billion euros over 5 years”, according to the Ministry of Labour. It will improve the prevention of exposure to “ergonomic risk factors” such as carrying heavy loads or even painful postures.

The decree specifies in particular that people exposed to the “night work” factor will be able to acquire hardship points from 100 nights per year, instead of 120 before. Thus “the thresholds associated with the professional risk factors “night work” and “work in successive alternating teams” of the professional prevention account” will be lowered.

Creation of old-age insurance for carers

The rights of caregivers will also be strengthened by the creation of a new old-age insurance for new caregivers. Will be concerned “parents of disabled children whose disability rate is less than 80% but who are eligible for the supplement to the disabled child’s education allowance” and “caregivers of non-cohabiting disabled adults or having no family ties but only a stable and close tie with the person being cared for”.

Improvement of the prevention professional account (C2P)

The professional prevention account will also be improved by two new decrees which will facilitate its recourse, will improve existing rights and create “a right to professional retraining”, according to a press release from the Ministry of Labor published on Friday. Thus, an employee’s points account will increase in proportion to the number of risk factors to which he is exposed.

According to the points conversion scale, one of them will feed the professional training account (CPF) up to 500 euros, against 375 euros currently.

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