French PM Edouard Philippe defies unions with pension overhaul; strikes set to go on

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Philippe said France would replace a convoluted system of more than 42 separate state-funded plans with a universal, points-based system that will apply to those entering the job market for the first time in 2022

Philippe did however show some flexibility to unions over the timing of its implementation, saying anyone within 17 years of retirement would be exempt – a longer period than the five years initially envisaged.

The legal retirement age would remain at 62, the prime minister said, but workers would be incentivized to work until 64 through a system of bonuses and discounts. That, he said, would allow a balanced pension budget by 2027.Reform of France’s pension system, which offers some of the most generous benefits in the industrialized world, has proven a treacherous task for past and present governments.

The strongest opposition to the planned reform has come from workers with ‘special benefit’ plans, including rail employees, dockers and Paris Opera singers who are entitled to retire on a full pension years before the average retirement age of 62.

 

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