Jouahri calls for urgent pension reform

Jouahri calls for urgent pension reform

The Wali of Bank Al-Maghrib, Abdellatif Jouahri, once again stressed the need for reform urgently” dMoroccan diets of retirement and the Compensation Fund. These reforms are essential to strengthen social arrangements within the Kingdom, he said.

On the occasion of the traditional press conference at the end of the last meeting of the Board of Bank Al-Maghrib held on Tuesday June 20, the main subject was, unsurprisingly, the evolution of the key rate, maintained at 3% by the board. However, Abdellatif Jouahri wanted to address two other issues.

This is the urgency of accelerating the reform of pension schemes in Morocco in order to prevent the worsening of the deficit of the provident funds and the reform of the Compensation Fund which has become necessary, according to the Wali of BAM, to be able to finance new social projects.

The longer we delay in acting, the greater the commitment gap and the more complex future solutions become (…). For reforms to succeed, they must be undertaken at the right time“, he argued.

And to add: When it comes to bringing about structural social change, things get more complicated, but it is essential to keep moving forward (…). It is these reforms that will give the government budgetary leeway to finance other social projects and invest in the creation of wealth.“.

With regard to raising the retirement age, Abdellatif Jouahri calls on the government and the unions to show common sense and to find common ground within the framework of social dialogue so as not to aggravate further the deficit of the social welfare funds. “The technical studies are known, the deficits are known. Stakeholders need to be smart on both sides,” he pointed out.

Morocco’s pension systems therefore face pressing challenges, and the need for reform is becoming increasingly urgent. According to recent studies conducted by the Insurance and Social Welfare Supervisory Authority (ACAPS), the main pension schemes in the country face worrying prospects.

The National Social Security Fund (CNSS), for example, forecasts a first overall deficit as early as 2027, and its reserves are likely to run out by 2040. Similarly, the public sector schemes managed by the Moroccan Pension Fund ( CMR-RPC) and the National Pensions and Insurance Fund (RCAR-RG) are facing increasing financial difficulties.

The CMR-RPC scheme recorded its first overall deficit in 2015, and the depletion of its reserves is expected for 2028. As for the RCAR-RG scheme, it faces an imminent overall deficit this year, with a depletion of its reserves planned for 2044.


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