2023-10-25 15:43:40
The account is good, according to Cnav. The director general of the National Old Age Insurance Fund assured Wednesday that the first figures on the impact of the pension reform for small pensions, the subject of much controversy, were in line with his forecasts, in particular for new retirees.
The reform increased “by 30 euros on average” the minimum contribution (boost for small pensions) received by people who retired in September, declared the CEO of the Cnav, Renaud Villard, in the Senate. A figure “in line with our forecasts”, he said, without specifying the number of people affected by this boost.
For people already retired, the reform increased the minimum contribution “by 50 euros on average” for around 500,000 individuals, added the director of the Fund. Of these 500,000 people, 20,000 received the maximum amount of 100 euros. The average of 50 euros “is a little lower” than the Cnav forecast, which was 60 euros, said Renaud Villard. The Fund, however, maintains its long-term forecast, because the 500,000 beneficiaries are more recent retirees and need less of a boost, he explained. “The amount for retirees who left 20 years ago will be greater.” “We can then check” the amount of 60 euros.
A negative balance of 7.4 billion in 2027
In total, 1.7 million retirees at the time of the reform must benefit from an increase in value by September 2024, according to Cnav forecasts. The revaluation of small pensions was the subject of controversy during the pension reform, on the scope of its beneficiaries or on its amounts.
It should make it possible to implement the government’s promise of a gross minimum pension at 85% of the SMIC – 1,200 euros at the time of the reform – for all employees who have completed a full career at the SMIC. Regarding the evolution of the deficit of the general system and the Old Age Solidarity Fund, the Cnav forecasts a negative balance of 7.4 billion euros in 2027, whereas it would have been 11.7 billion without the reform, according to figures from the president of the Cnav, Éric Blachon.
By 2030, the deficit will be around 10 billion, “while it would have been 17 billion without the reform”, according to director Renaud Villard. The persistence, despite the reform, of a deficit of 10 billion euros “may be surprising”, admitted Mr. Villard. “We must not forget” that the pension reform “did not plan to restore balance to the general system, but to all the basic and supplementary systems,” he said.
He also warned that the funding problem will likely arise again in subsequent years. “The latest reform contributed to significantly reducing the need for financing, but this is not yet completely covered beyond 2030 and 2040,” he underlines. In 2070, with current demographics, (…) the retired contributor ratio reaches the fateful figure of 1. This means that each worker will have to carry 1 retiree on their shoulders, whereas today it is 1.4. »
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