France To Allow Retirement At 60 For People Who Started Early

PARIS (MNI) – France’s new government decided Wednesday to allow
employees who began work at 18 to retire at 60, implementing a campaign
pledge of President Francois Hollande ahead of the first round of
parliamentary elections on Sunday.

After the controversial reform of the pay-as-you-go public pension
system two years ago, which pushed back the legal retirement age for
most people until at least 62, the latest reform will affect roughly one
out of five people retiring each year. It will cost an estimated cost
E1.1 billion next year, rising to E3 billion by 2017, according to
Social Affairs Minister Marisol Touraine.

“It’s a measure for justice which is completely financed,” the
minister said. The cost is to be financed with a 0.1-point hike per year
in social payroll contributions by all employers and employees.

Those opting for early retirement must have worked for at least
41.5 years, with the exception of up to half a year for maternity leave
or unemployment. Trade unions had demanded longer periods of exception.

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