The Head of Government, Saad Eddine El Othmani, declared on July 9, that in order to save pension plans, wage cuts and the retirement age would have to be increased, starting this year.

Speaking in the House of Councils, he admitted to being unable to cancel ministers and parliamentarians’ pensions. His statement came in response to the countrywide campaign for pensions’ abolition.

The civil pension plan

El Othmani’s new initiative comes after the publication of the 2017 report by the Authority For Control of Insurance and Social Welfare (ACAPS). The report reveals that pension funds in Morocco are currently facing bankruptcy.

Despite the previous government’s progressive reform of the civil pension plan, the pension funds are in acute financial crisis.

In order to solve the crisis, Abdelilah Benkirane’s government put into motion an initiative to increase both wage cuts and the age of retirement.

Both wage cuts and retirement age were set to increase incrementally. Wage cuts will reach 14% this year, while the retirement age was set at 61 in 2017 and reached 63 in 2018.

During the House of Councilors’ monthly session on general policy, El Othmani announced a further reform plan. The new reform plan which will involve Morocco’s four pension funds, as well as the relevant government sectors, is under way.

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