France’s pension reform plan has been a controversial topic in recent weeks. The plan aims to eliminate 42 different special pension schemes, including one for civil servants and another for workers in the Paris metro, and unify them with the rest of the country’s workers. However, there is one specific pension plan that has created a media frenzy: the retirement plan for senators. Senators receive a generous net retirement pension of 2,200 euros per month after serving a term of six years. This amount increases with every additional term they complete, resulting in an average retirement pension of 3,856 euros net. In comparison, deputies in the National Assembly can receive only 685 euros net for serving their 5-year term, which has caused an uproar among the general public.
The average pension in France is about 1,400 euros net, and many have criticized the Senate’s pension plan for being too generous. However, several senators have justified their regime, saying that it is autonomous and does not rely on public financing, unlike other special pension funds. The retirement plan is financed with the Social Security contributions of senators and other employees of the Upper House, as well as the Senate itself. These contributions are invested in financial assets to contribute to the pension plan.
In France, both the worker and employer have to contribute to the pension plan. The private sector’s entrepreneurs contribute around 16%, while the National Assembly contributes 22% to the pension plan for deputies. In comparison, the Senate contributes 30%, making it the most generous. However, the Senate is financed by the State through public funds, so it is not entirely independent.
The separation of powers means only the Senate can decide on its pension plan, which has led to questions as to whether it will ever be changed. In conclusion, the pension reform plan in France has caused a stir among the population, with many questioning the fairness of the system. It remains to be seen whether the Senate will be willing to make any changes to its pension plan in the future.
