April 2019

26Apr

France. Macron to cut taxes and raising pensions but matching with spending cuts

French President Emmanuel Macron has ordered that further cuts to income tax must be matched euro-for-euro by cuts in public spending to keep the budget deficit from spiralling out of control, his finance minister said on Friday. In his response to months of anti-government protests, Macron said late on Thursday that he would cut income tax further by 5 billion euros (£4.3 billion). "The president has set a principle of which I am the guarantor: each euro of decrease in income...

April 26, 2019
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15Apr

Workers’ Employment Rates And Pension Reforms In France: The Role Of Implicit Labor Taxation

By Didier Blanchet, Antoine Bozio, Simon Rabaté, Muriel Roger Over the last fifteen years, France has experienced a reversal of older workers’ labor force participation and employment rates. Changes in health, life expectancy or education levels over the period are trend variables and thus cannot explain this “U-shaped” time profile. Pension reforms and associated changes in monetary incentives to retire are a more plausible explanation. Their impact is measured by the implicit tax rate on working longer,...

April 15, 2019
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05Apr

France wants to cap executive pensions, in dig at Airbus

The French government wants to impose a cap on executives' pension packages, amid criticism of a hefty retirement deal for the CEO of Airbus. Finance Minister Bruno Le Maire said Thursday on BFM television that he will propose legislation in coming weeks to limit pension packages to 30 percent of an executive's annual pay. He didn't elaborate. Le Maire has said the package for Airbus' Tom Enders was "excessive" and could hurt the plane maker's reputation. French media reports...

April 5, 2019
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March 2019

20Mar

‘No change to France retirement age’ after backlash

There will be no change to the minimum retirement age in France, the health minister has confirmed, despite having previously suggested that “a lengthening in the duration of work” may be possible. The move has been described as a “backtrack”, after health minister Agnès Buzyn had previously appeared (on Sunday March 17) to suggest that a new minimum retirement age would be proposed. When questioned by MPs on the topic this week, however, Ms Buzyn said: “No change to...

March 20, 2019
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February 2019

19Feb

Munich Re closes longevity swap deal with Lafarge pension scheme

German reinsurer Munich Re has completed a longevity swap deal with the Trustee of Lafarge UK Pension Plan, the UK pension scheme of French industrial company Lafarge. The arrangement is intended to reduce the Plan’s exposure to longevity risk, which arises when pensioners live longer than expected and thus claim more money on their retirement plans. Lafarge identified longevity risk as the largest individual risk in its plan due to its focus on defined benefit (DB) schemes, which pay...

February 19, 2019
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January 2019

03Jan

France. Can weakened Macron push through reforms in 2019?

This time last year French president Emmanual Macron was riding high. By July the ride was over. After a hellish few months, there are doubts that he will be now be able to push through his proposed reforms for 2019. Macron's big thing was his determination not to back down in the face of opposition - until he did. His decision to find 10 billion euros to try to placate the Yellow Vests might not have neutered them and...

January 3, 2019
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December 2018

31Dec

Pension changes in France from January 1 2019

A new year and a new month are set to bring changes to life in France, including - from January 1, 2019 - a rise in gas prices, a ban on glyphosate, changes to energy benefits, tax, healthcare, and apprenticeships. Energy Regulated gas prices will drop by almost 2% from January 1. The national energy grant will rise by €50, and will help 5.8 million households pay their bills or make crucial upgrades to their home’s heating system....

December 31, 2018
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December 2018

19Dec

No-deal Brexit: New government guidance won’t reassure pensioners in France

The UK government released more "no-deal" Brexit guidance on Tuesday aimed at reassuring those citizens living in the France who receive pensions and benefits but the information is unlikely to ease their worries. The British government announced on Tuesday that it would implement its no-deal Brexit contingency plans in full, which will include putting 3,500 troops on standby and reserving ferry space for supplies. With Theresa May's Brexit deal seemingly doomed the government has decided to ramp up its no-deal planning,...

December 19, 2018
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November 2018

06Nov

France. Aviva creates a first pension fund “à la française”

A first supplementary occupational pension fund (FRPS) has just been created in France. Aviva France has obtained the approval of the French Prudential Supervisory Authority (ACPR) to create a FRPS. According to a decision published on Tuesday in the "Official Journal", the insurer will be able to transfer into this new entity called "Aviva Retirement Professional" pension portfolios. Sometimes presented in a rather swift way like "pension funds à la française", the FRPS - wanted by Emmanuel Macron when he...

November 6, 2018
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October 2018

11Oct

France. Macron’s pensions shake-up to take effect in 2025

A promised pensions overhaul by French President Emmanuel Macron will be introduced in 2025, but workers will retain benefits already accrued under the existing system, said the man liaising between government and unions over the reform. A trade union leader and business lobby group representative said they understood it would take 40 years for the new system to be fully phased in. The government wants to align the retirement systems in the public and private sectors as well as the variety...

October 11, 2018
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