Pension reform: Rise in small pensions will increase Social Security deficit by 400 million by 2023

Pension reform: Rise in small pensions will increase Social Security deficit by 400 million by 2023

The revaluation of small pensions envisaged by the pension reform will increase the social security deficit by 400 million euros, which is now expected to reach 7.5 billion euros this year.

Before the accounts are rebalanced, pension reform will begin to aggravate them. According to the latest version of the bill, the government’s planned revaluation of small pensions will increase the social security deficit by 400 million euros.

Less than a month after announcing a budget for 2023 that announced a deficit of 7.1 billion euros, the government revised its forecast to 7.5 billion in the Social Security Financing Amendment Act submitted to the State Council.

Reassessment of the amount of the minimum pension

The difference of 400 million is borne by the old-age division and is justified by the “first effects of all measures to reform the pension system” contained in this text, in particular “the reassessment of the level of the minimum pension for pensioners who have already liquidated their pension rights and for new pensioners “.

The board has indeed promised that a full career – meaning 43 years of contributions – would give entitlement to a pension of at least €1,200 gross per month or 85% of the net minimum wage when the measure comes into force on September 1st.

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The first draft, sent to the State Council last week, reflected that commitment to future retirees, a quarter of whom (about 200,000 a year) are expected to benefit from the change.

But Prime Minister Elisabeth Borne, in the draft law that will be presented to the Council of Ministers on March 23,

The latest version confirms that “pensions from the general scheme for current pensioners liquidated before September 1, 2023 will be revalued up to “100 euros per month for insured persons who have actually contributed to a full career”. “. without being able to exceed the threshold of 85% of the Smic “through equity with the new pensioners”.