The pension deficit will reach 11 billion in 2018 – BBC

The pension deficit will reach 11 billion in 2018 – BBC

Two reports of the Court of Auditors and the Board of Retirement Guidance, paint a disturbing finding of the health of all plans.

The supplementary pensions of employees and executives are “at an alarming situation that requires urgent action,” warns the Court of Auditors in a report published Thursday, revealed by The Paris whose Le Figaro has obtained a copy. Since the beginning of the 2009 crisis, supplemental plans “record of growing deficits.” To continue paying pensions to their 11.9 million insured Agirc and Arrco had to eat some of their reserves. These will run “until 2023 for all AGIRC and ARRCO, and no later than early 2018 for the single Agirc” according unpublished calculations Court of Auditors.

face “to the scale and urgency of the challenge,” the social partners must find 5 billion annually by 2018 and save as much as $ 120 billion by 2030. Retirees, employees and managers: all the world must make efforts, say accountants of the Republic, who consider an inevitable retirement age back in retirement.

The Court of Auditors is not the only one to pull the bell alarm. The Board of the Pensions (COR) will present on Tuesday its new projections for the entire system, additional to the basic schemes, to the officials that Le Figaro also procured. The pension gap will reach 11.1 billion in 2018, nearly 1 billion more than in 2014. And again, these figures are based on optimistic economic assumptions of the government, including table down sustainable unemployment from 2015.

This financial balance is not worse, said the COR, as derived from projections made in late 2012. It must be said that in the meantime occurred reform Touraine, which increased pension contributions. In addition, the social partners have been early 2013 steps to rectify the financial margin trajectory Agirc and Arrco. Finally, the postponement of the legal age decided in 2010 by the Fillon government begins to take effect. Almost 3 billion of the estimated $ 11 billion shortfall expected in 2018, however, will come from borrowing of the “Plan” officials automatically filled by the state.

In the longer term, adds the COR, the pension system could, if unemployment finds its levels of the postwar boom, “return to balance in the second half of the 2020s.” But if the improvement was not at the meeting, most likely case, then “the financing needs would persist.”

The plans AGIRC and ARRCO will not survive long enough, at this rate, to see 2030. Once their reserves dry, they will have to cut pensions because they do not have the right to borrow, or die. Unlike the basic schemes (administered by the national pension insurance or social security scheme for self, for example), which can pass up the deficits without going bankrupt. So much reminds the Court of Auditors, to date they have accumulated 67 billion debt …