Retirement-Savings As Seen By The Pacte Bill: Everything Is Changing!

Author:Ms Isabelle Hadoux-Vallier
Profession:August & Debouzy

In the chapter "More Innovative Companies" in the section "Improving and Diversifying Financing", the very ambitious PACTE bill presented on last June 19 before the National Assembly makes official the launch of the retirement-savings reform.

  1. Schedule

    It may seem strange to first take care of the last tier of the French retirement system (retirement-savings) when:

    - discussions have just been initiated on the foundations of this same system (with the creation of a universal primary retirement system) the implementation of which is not planned for several years.

    - the merger of the Arrco Agirc retirement schemes (the system's intermediate tier) enters into force on next January 1.

    But, looking at it closely, the schedules are not that far apart and each reform, given its content, may go forward without completely needing the other reform.

    For the primary retirement reform, after the concertation phases, the bill should be presented in Parliament in 2019 for adoption (and, therefore, transparency of the system) likely in 2020.The measures taken will progressively enter into force over several years, beginning in 2025.

    For the PACTE bill, parliamentary debates will begin next September and, in an optimistic scenario, could be completed before the end of 2018.Some measures related to the retirement-savings system are announced by this bill as having to be part of the finance and social security financing acts (in principle those passed in December 2018).In addition, the PACTE bill refers, for a certain number of subjects impacted by this reform, to decrees and, above all, to orders to appear within 6 to 12 months after the act's publication.Lastly, it is expressly provided that the principal measures of the PACTE act involving retirement-savings will enter into force no later than January 1, 2020.

  2. Initial observation

    Starting with the observation that in France the retirement-savings system is fragmented and compartmentalized, Article 20 of the bill provides a very strong symbolic act:the creation in a single code (here the French Monetary and Financial Code) of a chapter dedicated to "retirement-savings plans" and applicable to all individuals regardless of their status.

    The PACTE bill, therefore, goes much further than the very general, disconnected definition of any other text than the act of November 9, 2010, had set forth in its Article 107 pertaining to the retirement-savings system.

    It creates a veritable legal foundation shared by...

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