Bankruptcy threatens pension funds in Morocco … and government seeks solution

The Ministry of Economy and Finance has revealed that the reserves of the civilian pension system (70 billion dirhams) will be depleted by 2028, and that the Moroccan pension fund will need about 14 billion dirhams annually to meet the system’s obligations. come. deficit.

The Supreme Court of Accounts (an official body for monitoring public finances), in its latest report, insisted on initiating a structural reform of pension systems, by accelerating the pace of normative reforms, with the aim of approaching existing systems to a targeted and pre-determined system.

The pension funds witnessed their last amendment in 2016 with the previous government led by the Justice and Development Party, as it continued to increase the contributions of the state and civilian state employees and gradually increase the retirement age from 60 to 63 years .

Shocking and relentless recovery

The head of the Democratic Labor Organization (an opposition union), Ali Lotfi, says that “the reform of the pension and civilian pension systems that came into the hands of the Benkirane government in 2016, ‘a shock and a serious blow “was for civilian pensions and those involved in the Moroccan Pension Fund, and a significant setback in profits in this area.” .

Although “the fact committee came out with a diagnosis that the Moroccan Pension Fund knew imbalances caused by corruption and mismanagement, the Benkirane government took its unfair decision against state employees and public institutions and imposed the retirement age up to 63 years,” added Lotfi to “Sky News website.” Arabic.

The same spokesman warned that “if the government does not take swift action and radical and comprehensive reforms to reform the four pension funds, the latter will find it difficult to pay out the pension claims of millions of retirees and their beneficiaries.”

Some of the reasons for this are the “development of demographic factors and the high rate of aging in Morocco, as opposed to a marked reduction in financial positions in the annual budget allocated to public administrations, and factors of mismanagement, governance and corruption in various funds. “

Fund consolidation and raising the age

During a recent study day organized by Parliament’s Finance Committee, several recommendations were made for the sustainability of pension or retirement schemes in the Kingdom, including the grouping of the retirement scheme into two poles, public and private, with the horizon around ‘ to create a unified system. , and amending the regulatory texts to ensure permanence, requiring an increase in the retirement age, or an obligation to engage.

inefficient triad

Commenting on this, the former member of the Technical Committee for Retirement Reform, Muhammad Al-Hakish, believes that “the solution to the retirement problem through the pockets of workers, employees and employees through increases in contributions, increasing the age and reducing pensions is not effective not.”

Al-Hakish stressed in his speech to Sky News Arabia that “this trinity to which technocrats resort, bears responsibility for the wage earners and reduces the standard of living of retired men and women.”

Relative crisis and possible transgression

To emerge from this crisis, the former member of the Technical Committee for Retirement Retirement believes that “the pension fund crisis is relative, and the possibility of overcoming it lies in identifying the weaknesses in the measure, the recovery of the debts owed by the state to the Moroccan Pension Fund, and is working to approve the operator’s share which is equal in all Regulations: The employee’s contribution is doubled, and the fund’s savings are used efficiently.

The former member of the technical committee for pension reform also stressed that the current situation of pension funds can be circumvented by “addressing the problem of unemployment to increase the number of activists.”

contains fragile groups

In the context of this situation and with “the growing aging and the decrease in the availability of the work factor, and in view of the fragility that characterizes the pension systems in Morocco, it was necessary to find formulas to address the vulnerable groups of society not covered by the coverage by establishing a social safety net, and reforming existing systems that are limited and weak. The level of protection provided, to ensure the fairness and efficiency of retirement systems ”, emphasizes the professor of social law. at the University of Abdelmalek Saadi in Tangier, Khaled Bukaish.

In his contact with “Sky News Arabia”, Boukaish said that “the Moroccan legislator’s awareness of the seriousness of this situation and his desire to benefit from the period of demographic privilege seen by the pyramid of age groups in Morocco is which prompted him to adopt Framework Act No. 09.21 relating to the generalization of social protection that defined the schedule.The time frame for its implementation is 5 years (2021-2025).

The professor of social law explained that the step started with “the basic compulsory circular on illness 2021-2022, followed by the generalization of family compensation during the years 2023 and 2024, provided that participation in retirement systems is extended and the benefit of compensation for job loss in 2025 will be expanded. ”

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