French construction industry scheme Pro-BTP is in the process of setting up new forms of savings based on the principle of capitalisation.
“We are in the process of establishing for the whole construction industry new forms of savings based on the principle of capitalisation,” says Pierre Ramadier of Pro-BTP.
“That starts now and will become fully operational by the end of the year. It will complement the existing ‘repartition’ system whose funds are invested in very short terms assets. The existing system will continue as before but with an increased level of contributions to allow it to continue to exist. But the additional contributions only serve to rebalance the system, so that the pensions that are going out can be fully paid for.”
Ramadier said the new scheme would be backed by long bonds and index-linked bonds (total two-thirds), with a third in equities. Two-thirds of the bond portfolio would be government-issued and a third corporate.