Pension reform: what systems allow you to leave before the age of 64?

Before the reform, there were systems allowing certain policyholders to leave before the legal retirement age:

With the increase in the legal retirement age to 64, what happens to these measures relating to early departures? Law 2023-270 of April 14, 2023 includes measures concerning new versions of early retirement schemes.

The start of the legal retirement age is gradually postponed from 62 years to 64 years from September 1, 2023 and until 2030. From the 1968 generation, it will thus be necessary to have contributed 172 quarters (43 years ) and have reached the age of 64, to qualify for payment of their full-rate pension. There are currently measures allowing people who started working very early to retire early. What is the impact of the reform on this “long careers” system? The law provides that the “long careers” system will be adapted so that policyholders who started working early do not exceed 43 years of contributions. Thus, 4 age limits have been put in place compared to only 2 previously (16 and 20 years):

The possible departure age will depend on:

The amount of the pension based on the gross salary remains at approximately 50%.

The early retirement system for disabled employees is maintained. It will still allow early retirement from the age of 55 since the law provides that the legal retirement age is lowered to 9 years for people with disabilities. In addition, new developments are planned with the reform. Indeed, in the old system, early retirement was subject to three cumulative conditions:

The law of April 14, 2023 removes the dual condition of total insurance duration and contributed duration, retaining only the condition of contributed duration. There is therefore only a double condition: a contribution period and a justified disability situation over this period. In addition, certain people who are unable to demonstrate permanent incapacity of 50% over the entire required contribution period have access to a retroactive validation procedure. This must be initiated with the commission placed with the CNAV. The reform aims to simplify access to this procedure by reducing the threshold of permanent incapacity required at the time of the request for liquidation of the pension allowing access to the commission: from 80% to 50%.

Under the old system, under certain conditions, policyholders with a permanent disability rate of at least 10% could retire from age 60, that is to say 2 years before the retirement age. legal. They benefited from the automatic full rate even if the required insurance period was not reached. The system is maintained but adapted by the law of April 14, 2023 according to the IPP rate:

The employee whose online pay slip includes this information is eligible for this simplified procedure.

Under the old system, insured persons with a permanent disability rate of at least 50% or recognized as unfit for work by social security could retire at the legal age (62 years) with the full rate, even if they did not have the required insurance period. With the increase in the legal retirement age to 64, the law creates a new early retirement age, specific to these policyholders. They will thus be able to continue to retire at 62 with the full rate despite the increase in the legal retirement age. In fact, disability opens the door to early departure with the full automatic rate at an age 2 years older than the legal retirement age, i.e. 62 years.

The professional prevention account (C2P) is complementary to the early retirement system for long careers. The employer must declare employees exposed to at least one factor exceeding the threshold set by the C2P. The employee then benefits from a C2P account through which he can accumulate points which will be used to finance professional training, to benefit from reduced working hours or to validate quarters of retirement. The law of April 14, 2023 maintains the possibility of validating up to 8 quarters of retirement insurance with C2P. The employees concerned will still be able to benefit from an early departure of 2 years, for retirement at 62 instead of 64. In addition, the quarters of retirement acquired within the framework of the C2P will be taken into account in determining the insurance duration.

Conclusion: The measures concerning pensions will come into force from September 1, 2023. However, the various early retirement schemes must still be the subject of implementing decrees which will set out the detailed terms and conditions.

Aurora R.

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