Small pensions will not be adjusted at 1 October – The Point

Small pensions will not be adjusted at 1 October – The Point

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small pensions below 1,200 euros, the government had spared the freezing action, will not be adjusted at 1 October because of “low inflation”, said Friday the Department of Health. “The valuation rules because of the very low inflation in 2014 (0.5% Ed), lead to a stable pensions,” the ministry said. Due to the mechanical application of the calculation rules (which take into account the revaluation and inflation applied in 2013), retired to the lowest pensions will therefore have no euro more each month, thus returning housed in the same boat as other retirees, as announced by Europe 1.

The pensions of retirees minimum pension benefit on the other hand, “as the government had promised, suddenly inch in October, “the ministry said without indicating the size of the revaluation. Under the plan 50 billion in savings by 2017, the government decided the pension freeze until October

2015, which would generate $ 1.3 billion in savings. Under pressure from members of the majority, the government was “committed to save the modest retirees freezing action, by applying the rules of normal pension increases.”

A headache for the government

In the end, the non-revaluation had been decided for retirees all plans ( private sector employees, farmers, civil servants, artisans, etc.), receiving more than 1,200 euros (combination of the basic pension and supplementary pensions). In total, about half of the 15 million pensioners are concerned, for an average contribution of about 5 euros.

In fact, this amounts to a freeze of 18 months since the date of Annual pension increases had already been shifted this year from April to October on the occasion of the pension reform. The stabilization of the smaller pensions somehow facilitates the task of government. The partial revaluation of small pensions represented indeed a real headache for the administration.

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