Long careers: the new conditions with the pension reform


Long careers: the new conditions with the pension reform

LONG CAREERS 2023. If the pension reform were to come into force, the long career system would be significantly overhauled. With in particular the creation of new thresholds at 18 and 21 years old, to broaden the system. Explanations.

[Updated March 16, 2023 at 11:24 a.m.] What is the pension reform plan for long careers? Today, this system allows 1 in 5 French people to benefit from early retirement. With the pension reform, the government intends to go further, and strengthen this provision to allow as many people as possible to benefit from it. This is why two new levels should be created if the pension reform comes into force in the summer of 2023. One allowing those who started working before the age of 18 to benefit from early retirement at age 60. Another at 21, allowing retirement at 63. As a reminder, the new legal retirement age is set at 64 by the new pension reform. To benefit from the long career scheme, currently or after the reform, it is necessary to have validated 43 annuities and 172 quarters (full career). Also, it is essential to have contributed 5 quarters before any age level (18 or 21 years, for example, in the case of the reform).

Example: an employee who started his career at 19 and has a full career by fulfilling all the conditions of the long career scheme may leave at age 62 with the pension reform, i.e. two years before the new legal age.

Another potential novelty, to compensate for chopped careers, the periods validated under the old-age insurance for stay-at-home parents (AVPF), in particular due to parental leave, could be part of the long career system. Data subjects could therefore validate up to four additional quarters in this situation. Periods which would also be counted in the calculation of the increased minimum pension. This should increase the amount of small pensions for some women, forced to put their career on hold to take care of their child(ren). On the other hand, women could be among the losers. According to a government impact study, a woman will have to work an average of 7 months longer with the reform, compared to 5 additional months for men. And up to 9 months longer for a woman born in 1972, four months longer than a man.

Today, to benefit from early retirement for a long career, you must have started working before the age of 20 or before the age of 16. Two very distinct thresholds. You should also know that two other conditions must be met. First, your pension insurance period must include, all compulsory basic schemes combined, a minimum number of quarters contributed. Also, you must have acquired a minimum number of quarters of retirement insurance at the start of your career. These 2 pension insurance duration conditions vary according to your year of birth, the age from which you started working and the age from which you plan to take early retirement.

The 2023 pension reform should significantly modify the system by creating two new levels. A first at 18, allowing retirement at 60, four years earlier. A second, at 21, allowing retirement at 63, i.e. 1 year earlier than the new legal retirement age set at 64 by the reform. The creation of the threshold at 21 should allow 300,000 additional people to retire earlier.

Through the pension reform, the government promises a new system "adapted, so that no one who started working early is forced to work over 44 years". But the system of long careers appears to be the main point of contention between the majority and the opposition. So much so that the Prime Minister has already let go, by agreeing to grant an early departure at 63, for those who started working before the age of 21. The maximum threshold was until then at 20 years. A concession like an outstretched hand to the deputies Les Républicains, who appear to be the only solution of alliance for the majority, with a view to adopting the text without passing by force with the help of a possible 49.3. This gesture on the part of the number 2 of the government could cost between 600 million and 1 billion euros per year.

Here is the new retirement age, based on your starting age. Attention, to benefit from this early departure, it is mandatory to have validated at least 5 terms before the age of 20, 4 if you were born at the end of the year:

The national pension fund for local authority employees (CNRACL) is the pension fund for the basic scheme of local government and hospital employees. It is a public administrative institution of the State, it is managed by the Pensions and Solidarity Department of Caisse des Dépôts. Note that the conditions for obtaining a "long career" pension are exactly the same as for other civil servants.