The executive has communicated widely on the revaluation of small pensions provided for in its pension reform project. Until, sometimes, being confused on the number of people actually concerned and the conditions to be fulfilled.
It had to be the carrot to make up for the stick. While asking the French to work longer as part of the pension reform, the government is making a big noise about the revaluation to 1,200 euros gross per month of the so-called pension “minimum”, “minimal” Or “floor”. However, as many media, including franceinfo, have reminded us, all current and future retirees with a pension today below 1,200 euros will not reach the much-hoped-for level after the reform. This sum is reserved for those who have had a full, full-time career, and who have always earned a salary close to the minimum wage.
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Exit, therefore, the workers with chopped careers or having worked part-time, yet many among the small pensions. Some retirees who have worked all their life may also receive less than 1,200 euros, since this amount is calculated by integrating the supplementary pension, which is not as generous depending on the scheme to which the insured is affiliated, as recalled by the Institute for Public Policy in a blog post published on February 9.
These details have often been absent from the public speeches of members of the government, before the latter put their cards on the table in recent days, in the face of general incomprehension. Here are some examples of the omissions and mistakes made in the past two months in this regard.
Speaking of 1,200 euros net… and not gross
“The objective is that with a full career, no one retires with less than 1,200 euros net per month, or 85% of the minimum wage”details the Minister Delegate in charge of Relations with Parliament, Franck Riester, in South West (article reserved for subscribers) on December 9, 2022. Contrary to what is reported, the reform provides for the revaluation of pensions to reach a maximum of 1,200 euros gross, and not net, from which the general social contribution (CSG) must in particular be subtracted.
The confusion between gross and net amount is also maintained by other members of the executive. During her presentation of the reform to the French on January 10, Prime Minister Elisabeth Borne praised those who “will now leave with a pension of 85% of the net minimum wage, an increase of 100 euros per month. It’s nearly 1,200 euros per month from this year”. However, the 1,200 euros of pension and the 100 euros of maximum revaluation, are gross amounts. But they are constantly compared to another amount – 85% of the minimum wage – which is expressed net … which feeds the confusion.
By being imprecise on the number of retirees concerned by the maximum revaluation
During the conference presenting the reform on January 10, Olivier Dussopt did not hesitate to talk about “minimum pension”, “minimum pension” And “retirement minimum” to refer to what is, in fact, the revaluation of certain small pensions. Above all, the formulation used by the Minister of Labor casts doubt on the number of retirees concerned by this measure. Here is what he says: “We are going to increase the lowest pensions by 100 euros per month from September 2023, thus reaching nearly 1,200 euros per month for a full career contributing to the minimum wage. This measure, the minister also said, will be indexed so that, month after month, year after year, this departure with at least 85% of the minimum wage is guaranteed to employees who request the liquidation of their rights. retired out of four.”
The Minister of Labor reminds us here that the 1,200 euros are reserved for those who have “a full career contributed to the smic”. On the other hand, contrary to what he suggests, “200,000 new retirees” will not benefit from it. According to the impact study of the bill (PDF file), “between 180,000 and 200,000” new retirees, each year, will see their pension revalued in relation to the current rules. But “less than 10% of new retirees are potentially affected by the maximum increase of 100 euros”, estimates the Institute of public policies. According to the impact study, theFuture retirees will earn, on average, 33.50 euros gross per month more (for the 1962 generation, taken as an example in the impact study). Progress certainly, but far from the hundred euros put forward by Olivier Dussopt here.
Note that the Minister of Labor is also familiar with the vagueness on this subject. On January 15, in the “Political Questions” program on franceinfo, France Inter and The worldOlivier Dussopt repeats: “There are about 1.7 to 1.8 million people who will benefit from the revaluation with what we want to do, in terms of guaranteeing 85% of the minimum wage for a full career”. If 1.8 million current retirees “will thus benefit from an increase in their pension”, according to the bill’s impact study, the average gain for them will actually be 56.50 euros per month.
By tangling the brushes on the modalities
The government spokesperson, Olivier Véran, made a series of errors during his intervention on franceinfo on January 11, the day after Elisabeth Borne’s announcements. “IThe minimum pension will be increased, on average, by 100 euros per month” he assures. However, this is the maximum amount, the average additional amount being in reality much lower (see previous point).
“Two million current pensioners, who have a pension of less than 1,200 euros per month, will see their pension increased to 1,200 euros per month”continues the former Minister of Health, who then mentions the “200,000 new retirees” who will also be able to benefit from this measure each year. Informed readers have now understood that this is the number of people who will be affected by a revaluation, whatever its amount, and not those who will be able to claim a pension of 1,200 euros.
How many retirees will actually be able to receive 1,200 euros? On this point, the government remains silent. “To tell you that it represents 10,000, 20,000, 30,000 people, I don’t know, because it will change every year, depending on the careers of the people concerned”thus justified Olivier Dussopt on France Inter, on February 8.