France: Government Proposes Changes in Pension System
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Version 0 of 1. The government of President François Hollande announced Tuesday the broad outlines of a much anticipated pension reform bill, aimed at preserving a generous but underfunded system but which is likely to be seen by some European officials as insufficient. The bill will seek to stem a $28 billion deficit with increases in withholdings from workers and employers and, beginning in 2020, a gradual increase in the pay-in time required to receive a full pension. A reform in 2010 raised the minimum retirement age from 60 to 62 and increased the pay-in time to 41.5 years; the new bill would raise the pay-in time to 43 years by 2035. Unions and company representatives said they were disappointed. |