ABSTRACT

This chapter discusses the institutionalization of pensions and its impact on

pension reform in France. The management of public pensions today is quite similar to the way it was designed at the end of World War II. Social

partners were very much involved in the development of pension policies

and played a central role in their implementation. This involvement, how-

ever, did not happen overnight, but was the result of a long series of con-

flicts and policy failures that led the state and social partners to co-operate

to establish the foundation of a viable pension policy, in terms of both

generosity and how it would be financed. Fifty years later, this trend is

changing as the state plays a stronger, but challenged role. The French pension system is fragmented along socio-occupational lines

and includes numerous schemes (see Table 2.1). Despite this plethora of

schemes, there is a convergence towards the rules and benefits granted by

the largest pension scheme for private-sector workers (re´gime ge´ne´ral), a

plan that operates on an insurance basis that ties, albeit loosely, benefits to

contributions. Civil servants also have various schemes, often referred to as

re´gimes spe´ciaux, where retirement is perceived as a continuation of working

life. Most civil servants are enrolled in the re´gime des fonctionnaires. They are itemized as such in the state budget and are granted benefits based on

the civil servant’s professional status and length of service prior to retire-

ment, even though some contributions are made.