In 2012, a report from the pension steering committee, the Conseil d'Orientation des Retraites (COR), argued that the previous pension reform introduced in 2010 was not enough for France to tackle its deficit by 2018 as previously expected. Following the announcement of the COR's conclusion, Hollande's government asked an independent advisory panel to work on a series of recommendations to reform the French pension system further, which could see its deficit increase to €18.8 billion in 2017, according to the government.
In its final report, the advisory panel made similar recommendations to the measures already introduced with the pension reforms of 2003 and 2010. The measures include a further increase in the period of contributions, tax rises for pensioners and an increase in the level of contributions.
However, the panel also recommended a limit on the indexation of pensions, which would lead the most wealthy retirees, already paying as much as 6.8 per cent of general social contribution (CSG) in tax, see their pensions fall by 1 percentage point compared with inflation.
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