The government has suspended the pension reform. The amending letter to the Social Security financing bill (PLFSS), which specifies the conditions for pausing the 2023 reform, was presented Thursday, October 23, during an exceptional Council of Ministers.
This letter, consulted by Capitaldetails the cost of the measure. The suspension of the reform should weigh 100 million euros in 2026 on the state budget and 1.4 billion euros in 2027. This is less than what was initially announced by the government of Sébastien Lecornu, which predicted a cost of 400 million euros from 2026 and 1.8 billion in 2027. This difference could be explained by the exclusion of certain profiles from the suspension of the reform of the retirements.
Long careers deprived of the suspension of pension reform?
According to The Parisianretirees who benefit from early departure for a long career would not be affected as would certain special schemes. This would save 300 million euros, says the newspaper. “These early departures are not affected by the suspension because their trajectory and their point of arrival are already more favorable than the 62 years and nine months provided for by the reform”reports a senior official in the columns of Parisian.
As a reminder, in the amending letter to the PLFSS, the government plans to involve certain actors in order to compensate for the cost of the suspension of the pension reform. The contribution rate of complementary organizations, mutual societies and health insurance, should increase from 2.05 to 2.25% in 2026. At the same time, while the finance bill already provides for the freezing of retirement pensions in 2026 by 0.4 points, the amending letter proposes an under-indexation of pensions by 0.9 points in 2027. The purchasing power of retirees should then be undermined since, according to the executive estimates, inflation is expected to reach 1.75% in 2027.
If the measure is adopted during the examination of the budgetary texts, the suspension of the Borne reform should run until January 1, 2028. Thus, the generation born in 1964 will be able to retire at 62 years and 9 months instead of 63 years. The increase in the contribution period will also be suspended at 170 quarters.
