What does the final pension reform text provide for those who started working before the age of 16, 18, 20 or 21? What we know, at this stage… since the text on which the government is playing its future via a 49.3 refers to a decree for certain terms of the future early retirement scheme for long careers.
The early departure system for long careers was precisely the crux of the negotiations between the government and Les Républicains to try to get the bill on pension reform adopted, before the passage of the text via 49.3. What does the final text – the fate of which remains subject to the verdict of the Constitutional Council on 14 April – provide for those who started working before the age of 16, 18, 20 or 21? The point… even if the reform refers to a decree.
The overall principle: an extension of 2 years (or almost)
Those who escape the decline in the starting age. Active workers who have started working (4 or 5 quarters with contributions) before the end of the year in which they turn 16 or 18 will be able to take early retirement respectively at age 58 and 60, if the text enters into force as it stands. For these very long careers, the current situation persists in the sense that the long career system already allows them to leave earlier. On the other hand, the duration of insurance required (the number of quarters to contribute) increases for everyone, long career or not… but another planned measure reduces the lengthening of these very long careers. Losers, or winners, among them? Precise data by year of birth would be needed to answer this… but the government has not provided precise figures on the impact of the measures adopted on the thread in the Senate.
Those who will work 2 more years, even in a long career. You have validated 4 to 5 quarters before the end of the year of your 20 years? The text provides for an early retirement age (compared to the legal age of 64 covered by this project) set at 62 years. Again condition to meet the 172 quarters required (less if you are born before 1965). In fact, without the reform, having started working before the age of 20 now makes it possible to leave at age 60: the decline is 2 years, as for the rest of the workers.
Those who will work more, but not 2 more years. Did you start working before the age of 21? Or more precisely you have validated 4 or 5 trimesters before the end of the year of your 21 years? Following the measure added by the Senate, and promised a month ago by Prime Minister Elisabeth Borne, if you collect enough quarters… you can leave early at age 63. Clearly, in this case: 1 year more work instead of 2 years… but beware of special cases (read below).
Pension reform: here are the big losers and the small winners of the final text
Long career: today, you must have worked 1 year (or more) before the end of the year of your 16 or 20 years
Here is the current principle of early departure for long careers. But be careful: having started before age 16 does not mean automatic departure at age 58! This requires having contributed enough quarters in the meantime!
| departure 60 years | departure 58 years old | |
|---|---|---|
| If you are n… | You must have validated, before the end of the year of your 20 years… | You must have validated, before the end of the year of your 16 years old… |
| From January to September | 5 quarters | 5 quarters |
| From October to December | 4 quarters | 4 quarters |
One of four ages, the oldest of which cannot exceed 21
Long career with the reform: two new age milestones
The text subject to 49.3 doubles the age limits: to be eligible for the long career scheme, if the text enters into force, it will be necessary to have contributed sufficiently before one of the four ages, the highest of which cannot exceed twenty-and- one year, to quote the text adopted following the rejection of the motions of censure. This is how one could sum up the future device, term:
| departure 63 years old | departure 62 years old | departure 60 years | departure 58 years old | |
|---|---|---|---|---|
| You are n… | You must have validated, before the end of the year of your 21 years old… | You must have validated, before the end of the year of your 20 years… | You must have validated, before the end of the year of your 18 years… | You must have validated, |
| Between January and September | 5 quarters | 5 quarters | 5 quarters | 5 quarters |
| Between October and December | 4 quarters | 4 quarters | 4 quarters | 4 quarters |
Generations 1962 and 1963. No impact?
Namely: the Senate incorporated an amendment (retained in the final version) aimed at allowing insured persons born in 1962 and 1963 to always be able to retire early for long careers under current conditions, with a full rate pension. But… the text of the law only sends back a decree whose content is unknown to date. Requested by MoneyVox, the Minister of Labor confirms his desire to make an exception for the 1962 and 1963 generations, but… for certain eligible long careers who can leave before September 1, 2023. So those who were born at the end of 1963 would not benefit from it. not. More details when the decree is published…
Are you born in 62 or 63? What the Long Career Amendment changes
Did you start working before the age of 20 or 21?
First, take out your career statement to make an accurate count of the quarters with contributions taken into account (see quarters paragraph below). On paper, here is the scenario that awaits you with the reform.
| If you have contributed 4 or 5 quarters* Before… | Long careers WITHOUT reform | Long careers WITH reform |
|---|---|---|
| 20 years | 172 quarters contributed Departure possible from 60 Tons | 172 quarters contributed Departure possible from 62 Tons |
* 4 quarters of contributions before the end of the year in which you turn 20, if you were born between October and December, 5 quarters otherwise.
The comparison applies to generations born from 1965. For the others, before or after the reform, the transition is gradual.
| If you have contributed 4 or 5 quarters* Before… | Eventually, WITHOUT the reform | Eventually, WITH the reform |
|---|---|---|
| 21 years old | 43 years old i.e. 172 quarters Departure possible from 62 Tons | 43 years old i.e. 172 quarters Departure possible from 63 Tons |
* 4 quarters of contributions before the end of the year in which you turn 20, if you were born between October and December, 5 quarters otherwise.
The comparison applies to generations born from 1965. For others, the transition would be gradual.
In fact, remember that the principle carried by this reform remains based on two conditions for an early departure for a long career: have started early (so the 4 to 5 quarters before the end of the year of your 20 or 21 years).
BUT ALSO have contribute enough quarters. In fact, having contributed 4 quarters before the end of the year of your 21 years will allow you to leave at 63 only if you lead a career without any gap in the meantime: 1 year of contribution at the end of the year of your 21 years + the remaining 42 years to contribute to complete the required 43 = 63 years. But it works in the best of scenarios…
No more than 43 years of work: really?
This double condition can have perverse effects in the other direction: for example if you have 8 quarters with contributions (2 years) at the end of the year of your 20 years… you will have to work until 62 years. What makes 44 years… If 43 years of contributions are required to start a long career, in fact, some working people will have to go beyond that, explains Claude Wagner of CFDT-Retraits Capital.
And yet … Immediately after the announcement of the measures adopted in the Joint Joint Committee (CMP), the LR parliamentarians on the subject insisted that no one would work for more than 43 years (172 quarters), term. In fact, the complexity of the long-career mechanism jeopardizes this principle, as was immediately demonstrated by opposition parties, trade unions, and certain economists at the forefront of this reform.
Which quarters count for the long career?
This is one of the other complex points regarding long careers. The quarters taken into account for this count are not the same as for access to the full rate (the age that allows you to leave with a full career, which may be after the legal starting age).
First example: to measure a long career, the quarters of increase for children are not taken into account.
Second example: periods of unemployment benefit or sick leaves are 4 trimester limits taken into account for the long career. A much less generous count than to reach the full rate.
Trick. You want to know how much you have contribution quarters? Go to your career statement on LAssuranceRetraite.fr. The distinction is made there between quarters used, in other words contributed and assimilated (sickness, unemployment, maternity, etc.) for the calculation of your rights and age at full rate departure. And the number of quarters contributed, a more restrictive definition used for minimum contributory rights (MiCo). Please note that the count of quarters used for early departure for long careers is slightly less restrictive than that of the MiCo, but it is close. For a detailed estimate, contact the Cnav.
Pension reform: why your career statement can save you from future mistakes and oversights
Attention. An uncertain context and partial information
Not only is the future of this amending bill for the financing of Social Security relating to the pension reform subject to the verdict of the Constitutional Council. But it also returns a decree for certain practical aspects of the application of these 4 new age limits. In this context, the editorial staff will detail the concrete changes in more detail later.
As a reminder, here are several articles dedicated to long careers, some having however been written before the measure concerning those who started working before the age of 21.
Everything you need to know about the PER to prepare for your retirement