Financial system adjustment: Unions and employers collaborate to express their opposition
Liberals Unleash White Paper, Radically Opposing Pension Reform Changes
By Adeline Lorence
Journalist, Retirement, Elderly
March 14, 2023
(© Getty Images / Westend61)
Peppered with raised eyebrows and heated debates, the liberal pension funds are straight-up headlining their objections to the ongoing pension reform changes. In a defiant white paper set to drop this Thursday, they'll lay out their staunch opposition to the impending transformation, especially regarding the potential demise of specific funds based on professions.
The heated rhetoric seems to revolve around the supposed dismantling of these niche pension funds, which supporters argue are crucial to maintaining the unique flavor of their respective trade. Take, for example, the modulation of retirement age or the option for adapted retirement employment cumulation – features that these professionals would rather hold onto rather than follow a streamlined, universal system.
Wielding a blue-collar swagger, 70% of respondents in a survey conducted between September and November 2018 have thrown their weight behind preserving the management and governance of their pension funds. Fiercely independent, these professionals can't stand the idea of a single, overarching organization overseeing their pension's fate. To back their point of view, they highlight the value of peer governance, noting that those who understand the intricacies of their profession best should be the ones to steer the ship.
But, the clash doesn't end there. Many of these professionals are questioning the proposed uniform system with high contribution rates on a base of three Social Security ceilings. They fear that this could place a significant financial burden on independent professionals in the early stages of their careers – matching the contributions of lifetime wage earners. To put it plainly, the argument boils down to asking a self-employed individual to navigate their professional growth while simultaneously footing an extensive social protection bill.
And don't forget about the financial reserves – the lifeblood of these pension funds, amassing over 20 billion euros. These are on the brink of being pulled into the mix, a move that the white paper warns against, calling it a breach of trust. Unsurprisingly, 81% of respondents are adamantly opposed to these reserves being pooled into a single regime.
So, what exactly are the key recommendations put forth in the white paper? Well, it's anyone's guess for now, but Pro'action retraite has promised to bring forth a comprehensive list of proposals by the end of April.
One burning question remains: At what age can you retire with a full pension? Keep a sharp eye out for future developments on this front!
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Update: The white paper titled "For an Open, Responsible, and Solidarity-Based System" was released on March 15, 2023. Highlights include advocating for professional retirement funds, resisting the pooling of reserves, and pushing back against unilateral governance. The contingency plan involves constructing a unified voice to weigh in on the pension reform debate and ensure their concerns are addressed.
Finance professionals are cautioning against the pooling of pension reserves, which they argue would breach trust and potentially result in a significant financial burden for early-career independent professionals, as per the white paper titled "For an Open, Responsible, and Solidarity-Based System." The release of this document, alas, brings the political aspect of pension reform into sharp focus, as business entities and the government grapple with how to ensure a secure retirement for all while balancing the needs of various profit and non-profit sectors.
