Deadline set for French second pillar talks

FRANCE – France’s social partners have named November 12 as the date on which they hope to have finalised negotiations on the second pillar pension system.

Yesterday saw the conclusion of a meeting of the social partners at the offices of Medef, during which they decided to complete negotiations next month.

Medef, the CGPME and the UPA met one month ago with the unions, CGT, CFDT, FO, CGC and CFTC to discuss how the reform will affect the two supplementary retirement fund associations, AGIRC and ARRCO. They have since been deciding on a timetable.

Says Cecile Vokleber, adviser at AGIRC-ARRCO: “The reform stated that, for lower-earning employees, the benefits must equal at least 85% of the salary. This will have an impact of ARRCO as it is the supplementary association for lower-earning employees.” AGIRC is the supplementary scheme for executives.

The reform also upped the contribution period which will lead to a longer working life. What age people will now retire at, is a further issue for discussion, as is the issue of early retirement.

According to the French press, there is no panic regarding the financial situation of the two systems. The unions are cited as saying that problems will not be seen for at least another five years, with the major impact being seen after 2020. Discussions are said to be amicable, and there is little doubt that an agreement will be met by November 12.