A Look at France’s Heated Debate Over Pensions
The planned overhaul of the French pensions system aims to streamline a complicated patchwork of provisions, but workers argue it will require them to work longer and will reduce their income.
The heated debate over the changes to the retirement system are laid bare in the nationwide strike and protests taking place Thursday.
The popular discontent will test the resolve of the government of President Emmanuel Macron, who says it remains determined to pass the reform next year.
Here’s a look at the planned measures, and why they are generating debate.
THE CURRENT PENSION SYSTEM
All French retirees receive a state pension. The average pension this year stands at 1,400 euros per month ($1,500 per month) once taxes are deducted. But that average masks differences across 42 different pension systems.
The easy bit: Employees in the private sector are part of the general pension system. They account for about 7 out of 10 workers.
The more complicated bit: many professions have a special pension scheme. Some people, like rail workers and air crews, are allowed to take early retirement. Others, like lawyers and doctors, pay less tax.
Civil servants – who number over 5 million – also have a separate pension scheme.
Over the last three decades, governments have made changes but each reform has been met with massive demonstrations. None of the changes managed to simplify the system.
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