Pension: 6 out of 10 civil servants would benefit if private settlement rules were applied to them.

In full consultation with the social partners on the “fairness” of the pension system, the statistical service of the Ministry of Health, DREES, calculated the pension that civil servants born in 1958 would receive if the rules for private sector workers were applied. they applied. And the results are amazing to say the least.

The average civil servant pension would ultimately change little (it would actually be slightly higher, by 1.5% under private sector rules) and “Therefore, there will be no apparent disparity at the global level,” according to a DREES study released this Thursday. Applying the private sector rules, 62% of the “sedentary” government officials of the generation of 1958 would have won and 32% would have been fined. Finally, the pension of 6% of agents should be flat, within +/- 1%.

During the full preparation of the pension bill expected in January, the Ministry of Labor could not have buried the veil and silenced the eternal public-private dispute. However, it should be noted that this study only refers to “sedentary” civil servants and therefore excludes agents from the “active categories” entitled to early leave, which include nurses, police, soldiers or miners. – professional firefighters.

On the other hand, the application of private sector rules will profoundly change the situation within the civil service itself. Civil servants with the highest pensions would be the majority losers, while those with pensions in the middle brackets would more often be the winners. Finally, the transition of civil servants to private sector rules will tend to reduce pension gaps between individuals.

Overall, if we consider the average impact on lifetime earnings (net wages and then pensions), civil servants would lose out slightly (-0.7%) if we applied the privacy rules.

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The losers will also be the agents who get few bonuses, like teachers. Thus, the pension of agents with premiums of more than 30% will increase by a little more than 6%, while the average pension of those with premiums of less than 10% will decrease by almost 5%, DREES calculates. The beneficial effect of the integration of premiums will, however, have the effect of increasing old-age payments. On average, public servants of the generation of 1958 would have had to pay a quarter more in salary payments over their lifetime if private sector rules had been applied to them, which would have reduced their net pay.

Overall, if we consider the average impact on earnings over the entire life cycle (net salaries and then pensions), civil servants would lose little (-0.7%) if we applied the privacy rules.

The main differences in the calculation method between public and private are of three types. First, basic scheme liquidation rates are higher for civil servants; their pension is 75% of last index salary, compared to 50% of last salary in the private sector. But civil servants have no additional pension, unlike private sector workers, for whom the Agirc-Arrco pension makes up about a third of the total pension (about a quarter for non-executives and more than half for senior managers). Their effects partially offset each other.

The second main difference. in the public sector, the pension is calculated on the last pay without any bonuses (which can sometimes be very high or very low, depending on the category of government officials), while it is based on the total pay in the private sector. It should be noted that, therefore, the workers pay more, because their social contributions are calculated on the total amount of wages. Finally, the last major difference. the pension in the public sector is calculated by comparing the last six months’ salary to the 25 best salary years in the private sector.