The National Council has passed a new government law that allows for the creation of the Monegasque Autonomous Fund, as Monaco takes its final steps away from France towards an independent pension system.
“The Prince’s Government is delighted with the vote by the National Council, on Thursday 13th April, of bill n° 1.070 creating the Caisse Monégasque de Retraite Complémentaire,” said the government in a statement.
On Saturday 15th April, French President Emmanuel Macron signed his controversial pension reform into law, raising the retirement age from 62 to 64. It follows a similar move by former president Nicolas Sarkozy in 2010, when he raised the retirement age from 60 to 62.
For around a decade now, Monaco’s Department of Social Affairs and Health has been working with various entities to create a supplementary pension fund, which will enable contributors to manage their pension scheme themselves, taking into account the various contexts specific to the Principality of Monaco.
“The efficient and virtuous management of the AGIRC ARRCO scheme by the social partners within the framework of the Joint Committees has ensured its stability over the years, stability that has benefited employees and businesses in the Principality since 1965,” said the government. “However, French and Monegasque regulations on retirement have gradually diverged, particularly with regard to the legal retirement age.”
The creation of this Monegasque Autonomous Fund is the first concrete step towards the supplementary pension scheme for employees, which has been set for 1st January 2024.
“It is also a major and essential step in the continuation of discussions with AGIRC ARRCO which are taking place in a climate of mutual trust and which concern the practical and financial arrangements for the repatriation of the regime, as well as the financial guarantee which will be granted by the State of Monaco to the Fund in the event of failure of the scheme,” concluded the government.
Photo credit: Mark de jong