INTERVIEW. Retirement: why subsidized contracts are penalized

The Tuc (collective utility works) represent the first generation of subsidized contracts in the 1980s. They were particularly penalized for their retirement. Here’s why.

photo claude wagner, pensions specialist at the cfdt.  © cfdt

Claude Wagner, pension specialist at the CFDT. © CFDT

Why did the former Tuc lose quarters of retirement?

This situation concerns all vocational training trainees. Instead of contributing on the full salary, the state does it on the basis of a few hours of work, just enough to qualify for health insurance, but not to garner quarters. The CFDT has been fighting for twenty years to have this system changed. This led to the reform of 2014. Each period of fifty days of internship now gives the right to one term. But it’s not retroactive.

What can the state do?

Make the granting of quarters retroactive, going back forty years. But this has a cost, which explains why the State is kicking in touch.

Did the problem also arise for subsidized contracts implemented subsequently?

There have been seventeen different types of assisted contracts for forty years. Some were considered vocational training courses. But this is not the case for the majority. Most often, these are common-law employment contracts: the old-age contribution is therefore based on the total remuneration. So that the acquisition of quarters is less complicated than for the TUC. Especially since the 2014 reform reduced the volume of contributions necessary to validate a quarter. Previously, you had to have contributed on the basis of 200 hours of work paid at minimum wage. Now it’s 150 hours. Furthermore, until the Solidarity Employment Contracts in the years 1990-2000, subsidized contracts did not contribute to the supplementary pension. However, it weighs a third of the pension on average. Assisted contracts have long been penalized.