The conservative government to reform pensions for mothers

Posted on June 18th, 2009 in Uncategorized

European case law on equality between men and women forced to reform in the coming months the increase in life insurance enjoyed by mothers for their retirement. Several avenues are being explored to secure the device.
Pensions for women are still penalized by motherhood.
The government had no intention of soon to tackle this thorny issue, but it is compelled by a court decision. The increases of insurance period enjoyed by mothers to calculate their retirement – two years of contributions are “available” for every child – are in danger in their present form and should therefore be reformed. “A modification of the device is necessary to take account of developments in the jurisprudence on gender equality, but also to meet the new needs of the insured,” announced Monday the Secretary of State for Family, Nadine Morano.
The Court of Cassation, which is based on the jurisprudence of the European Court of Human Rights has ruled in February that a father who raised children could qualify for the bonus. Given the pension deficit – nearly 8 billion this year – there is obviously no question of extending the current law to both parents. This would, over time, doubling the cost to the general scheme for private employees. And it would undermine the primary purpose of the device, which is offset, at least partially, the low level of pensions for women (see below). Despite this advantage, which represents on average 20% of their retirement, pensions for mothers are still penalized by motherhood more they have raised children, the more their income is low (see chart).
Ice

The executive has thus carefully on this slippery slope. “The goal is to secure it while not exceeding the current budget,” says one in government. Nadine Morano announced a “consultation” with the social partners in the coming weeks. The CGT has already warned that it would be “particularly vigilant”. “A challenge to increase the length of insurance would have a devastating impact on women’s pension, the union warns. “Several tracks are on the table,” says Denis Jacquat UMP member who prepares a report on the topic for the fall. The basic idea to be followed by the government is not to harm women. ”
The executive could be based on the reform which came into force in the civil service, for children born or adopted after 1 January 2004. On the one hand, the increase of life insurance has been halved from one year to six months. Conversely, periods of business interruption, such as parental leave, are considered for the female officers as men, to a maximum of three years per child.
Shared between parents

Other avenues of reform have been discussed by the Conseil d’orientation des retraites. The increase could for example be linked to the delivery or business interruption of two months. But this would in practice to reserve the advantage to women. “We may still be in contradiction with European law,” said a government source. Another solution would be to “share” the increase in life insurance between both parents. “Such a device would be particularly complicated to implement, the same source points out, particularly in cases of divorce and blended families. “

Published by