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Pension Funds in France: Still a Dead End?

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  • Anne Lavigne

    (University of Orleans, France)

Abstract

The French Presidential elections of 2002 have exacerbated the debate on the future of the pension system. This debate started about 20 years ago, and has been marked by numerous reports, books, and contributions that have not been followed by any significant political decisions. Only one reform, the Balladur reform (named after the Conservative Prime Minister in place at that time, Edouard Balladur) was enacted in 1993. Surprisingly, the Balladur reform was inspired by the White Book issued in 1991 and ordered by Michel Rocard when he was the Prime Minister of a Socialist government. The first pillar of the pension system, i.e. the pay-as-you-go (PAYG) basic scheme, was the only concern of the Balladur reform. The other pillars, i.e. complementary PAYG or funded schemes, were not affected. In March 1997, Parliament enacted the Thomas Act (named after the Conservative deputy who wrote the proposal) that introduced retirement savings plan (Plans d'epargne retraite), but the law was never enforced because of the political change in June 1997 and was formally abrogated in 2002. Copyright 2003 The International Association for the Study of Insurance Economics.

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Article provided by The International Association for the Study of Insurance Economics in its journal The Geneva Papers.

Volume (Year): 28 (2003)
Issue (Month): 1 (01)
Pages: 127-150

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Handle: RePEc:bla:geneva:v:28:y:2003:i:1:p:127-150

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  1. Didier Blanchet & Florence Legros, 2002. "France: The Difficult Path to Consensual Reforms," NBER Chapters, in: Social Security Pension Reform in Europe, pages 109-136 National Bureau of Economic Research, Inc.
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