France: Government Looks to Pension Reform

News reports state that French President Nicolas Sarkozy has said that a bill on reforming the costly pension system would be ready by September, with one option being raising the retirement age. This will be a challenge with much popular opposition being documented.

According to an Ifop poll for newspaper Dimanche Ouest-Francea, 59% of French oppose a rise in the retirement age. In addition, another poll from BVA for broadcaster Canal+ showed that French workers and students on average expect to retire at 62, higher than the current age but earlier than in comparable European economies such as Germany, where the retirement age is 67.

Sources: Reuters "France tackles explosive debate on pension reforms" (February 17, 2010); BBC "Nicolas Sarkozy to introduce French pension reforms" (Feburary 16, 2010)

France: Website for Employers and Employees to Manage Second Half of Careers

In order to help with the retention of employees in the second part of their careers--a major economic and social priority anticipated by employers and employees, Opcalia has launched Fifti, a website for professional and public use to change the social perceptions and changing attitudes of managers and employees as France seeks to raise the number of employees over 55 to 50% by 2010.

Fifti aims to help employees and employers to understand and anticipate the issue of age in the company. By combining the needs and expectations, raising fears and misconceptions, Fifti can open dialogue to understand different parts of the second careers and to implement new practices. Among other things, the website will address skills, training, preparation for retirement, motivation, nutrition, and physical activity of older workers.

Source: Opcalia Press Release (December 12, 2008)

France: Prejudice against Older Workers May Create Business Opportunities

According to a brief note in The Economist, a French employment agency (Experconnect) is attempting to take advantage of the French youth culture to place place retired people in work opportunities.

France has a poor record when it comes to keeping older people in the workforce. The retirement age is 60, not 65 as in most developed countries. In 2005 only 37.8% of people aged 55-64 had jobs, versus 56.8% in Britain and 44.9% in Germany. The main reason is that in the 1980s, when there was high unemployment, the government promoted early retirement. That entrenched the idea that older workers were less productive, says Caroline Young, Experconnect’s founder.

Unlike most employment agencies, however, Experconnect keeps its workers on its own books, so they can carry on drawing their pensions. Accordingly, they tend to work part-time on one-off projects.

Source: The Economist "Jobs for the old " (July 17, 2008)

France: Government Announces New Measures on Employment of Older Workers

Christine Lagarde, Minister of Economy, Industry and Employment, Xavier Bertrand, Minister of Labour, social relations, family and solidarity, and Laurent Wauquiez, Secretary of State for Employment, have announced a series of measures adopted at the end of the consultation with social partners on the employment of older workers. The main objectives are to:

• encourage businesses and industries to conclude agreements to keep or recruit older workers,
• encourage older people to extend their work beyond 60, and
• promote the return of seniors to work.

One of the principal means of pushing the agenda will be to require businesses and industries that have not concluded agreements on age management and employment of older workers by December 31, 2009 to begin paying additional retirement contributions in 2010. In addition, the ministers stated that age should no longer be a reason for an employer to terminate the employment contract.

To encourage workers to stay in the workforce, the measures call for allowing
cumulative employment and retirement without restriction at age 60 if on full retirement and at age 65 in all cases and for the elimination of the six-month waiting period for resuming work with the same employer.

Source: Ministère de l'Économie, de l'Industrie et de l'Emploi Press Release (June 26, 2008)0

France: Boomers Want To Retire at Normal Retirement Age

A survey commissioned by the Union Mutualiste Retraite (UMR) focusing on how employees aged 45 and over are thinking about their retirement, these baby boomers are seen asworried and not necessarily very well organized or informed: 80% say they feel worried about their retirement and 27% said they were very worried. However, regardless of how ready they are financially, most employees aged 45 and over do not want to work more to earn more after retirement.

According to UMR, the majority of boomers (60%) would continue to work for the minimum number of years required by law to receive a full pension. And many of the others, want to work less than that, even if it means getting less that a full pension.

Source: Union Mutualiste Retraite Press Release (June 17, 2008)

France: Pension Reform Proposals Aim to Retain More Older Workers

Pension reform proposals in France include measures to raise the number of older people in the workforce, including threatening companies with penalties if they do not increase their number of staff aged 55 to 64 and requiring employees to work 41 years, not 40, to qualify for a full state pension.

According to earlier pronouncements from the Labor Ministry, the Government's aim in building on the 2003 pension reforms is, among other things, to increase the level of employment of older people and to promote freedom of choice of everyone to prepare his retirement.

According to a March 25 letter from Minister Xavier Bertrand, the Ministry has just begun a phase of dialogue with all stakeholders and to solicit proposals from the social partners on various aspects of pension reform. At the end of this first phase of consultation, a policy document will be made public, a document on the basis of which discussions will continue with the social partners.

Sources: BBC News " France says 'take on older staff'" (April 28, 2008); Ministrère du Travail, des Relations sociales, de la Famille et de la Solidarité Dossiers (April 4, 2008)

Survey: Talent Gap Widens as Workforce Ages in G7 Countries

According to a study conducted by Towers-Perrin on behalf of AARP, as the number of workers reaching traditional retirement years increase in the G7 countries, the marketplace is experiencing a decline in the number of skilled younger workers available to fill in the ranks of those retiring. Thus, suggests AARP, employers must end age discrimination in the workplace if countries and employers are to be best positioned to thrive in the global economy tomorrow.

The study--International Profit from Experience--was released in advance of a conference on the same sponsored by AARP, in partnership with the European Commission, the Business Council for the United Nations and Nikkei. Among the survey's key findings:

• Age discrimination is the single largest barrier for those 50+ who want to continue working past their anticipated retirement age, with at least 60% of employees 50+ in each G7 country viewing age discrimination as the primary barrier to securing new jobs;
• Older workers in the G7 countries want to continue to work on average an additional 5 years;
• Surges of immigration and productivity that might offset the anticipated decline in skilled workers are unlikely to occur; and
• Allowing employees to continue working past their traditional retirement age will not only allow older workers to remain in their careers and stay active, but will have a positive impact on an employer’s bottom line.

Line Vreven, Director of AARP International, says that “While the survey clearly identifies the talent gaps emerging within G7 countries, the responses by employers do not sufficiently address this challenge.” In addition, those "nations working to actively retain older workers and are providing incentives, rather than deterrents, to their continued employment, will reap economic gain in the long-run.”

An executive summary of the full 124-page report is also available.

Source: AARP Press Release (September 25, 2007)