Allowance will be paid from the day of birth

While the review in the National Assembly of the Bill of financing of social security (PLFSS) for 2007 announced relatively peaceful, members have created the surprise, yesterday, by voting an amendment which, in fine, removes social security retirement benefits paid by companies and employees. And against the opinion of the Minister responsible for social security, Philippe Bas, which denounced "a provision contrary to any policy that we undertake to encourage the continuation of activity of older workers".

The action plan for employment of senior citizens, unveiled in June, removes the possibility for companies, to retirement employees before 65 years since they have all their pension rights, a provision contained in the PLFSS. Next year, the branches can no longer conclude agreement on this subject, and those already signed can no longer produce their effects beyond 2009. But many members of Parliament, sensitized by the Medef, worry about practical consequences. Because in the departures of office, retirement benefits (so-called "PMI") paid by the companies are exempt from charges for the employee to the employer, as severance. The difference is important with conventional retirement allowances (IDR), "loaded", they, in height by 50 for the employer, and 20 for the employee (not counting the payment of income tax).

Change the text in the Senate

To avoid penalising companies such as the employees concerned, the amendment by Mr UMP Bruno Gilles, Dominique Tian and Philippe Vitel created "initially decided in common", which "is based on a double volunteering but is assimilated for its effects to a retirement development". Namely an exemption from tax and social charges. "If you exonérez the allowances in the same way, you inspire employees and businesses to focus on the departures anticipated retirement", said Philippe Bas, which requested a second deliberation, before you give up, the Group UMP had that he was not a question to ask members to reject.

The Government will therefore try to change the text in the Senate, mid

November. The financial challenge is considerable, the Ministry of health considered that the loss of social income could reach between 400 and 700 million euros next year. The amendment providing that these losses will be offset by raising taxes on alcohol, it is inevitable that the Act is still evolving. In the meantime, a report on the subject of the General Inspectorate of Social Affairs (Igas) and General Inspection of Finance (IGF) will be available ("Les Echos" from October 19). "Companies continue to have a double speech on the employment of senior citizens, said a senior official. They ensure that should work longer to save pension while manoeuvring for the advantageous starting devices. Schizophrenia is total.

In addition, members changed, yesterday evening, article pushing the first payment of the base amount of the benefit of the young child (Paje) home in the months following the birth. Allowance will be paid from the day of birth. The Government hoped to 100 million euros of savings of this measure. He will in gain so that the half, which will degrade as the deficit of the family branch.