FRANCE The

64.5% (Hain/Tautz 2001: 365) without net payments from private
provision. In evaluating these payments, it must be borne in mind
that the standard pension is a purely notional amount based on
average earnings and 45 years of contributions. Most pensions are
below this level.
Since the transition periods for the introduction of reduced
pensions are still under way or have only just expired, and the
Riester pension has only just been introduced, it is still too early to
assess the situation. However, in its long-term forecast Prognos
anticipates a sharp rise in the employment rate for older workers,
primarily owing to the pension reforms in the past ten years (cf.
section 2.1).
3.2 Labour market policy
The older unemployed have long been a target group for active and
passive labour market policy. Older workers aged 55+ may be
assigned to publicly subsidised structural programmes for up to 60
months (a maximum of 36 months for those aged under 55). These
programmes focus on improving the environment or social service
provision or on other public objectives. Older workers are also given
preferential treatment and supported for longer in job creation
programmes. Furthermore, older workers are one of the special
target groups for settling-in allowances. Finally, the duration of
receipt of unemployment benefit increases very substantially with
increasing age. With only five years of insurance, a 57-year-old can
claim unemployment benefit for 20 months longer than an
unemployed 44-year-old (Table 4). The preferential support for
older workers under labour market policy is only partially based on
the wording of laws. Other provisions formulated in an “ageneutral”
way have been applied specifically to older workers. This
applies, for example, to structural short-time working allowances,
which cover employees for up to two years following job cuts, before
they become unemployed.
The aim of the 1996 Altersteilzeitgesetz [Partial Retirement Act]
(Kirsch/Müller 2002) was to facilitate a gradual transition to
retirement for employees. Employees aged 55+ can reduce their
working hours by up to 50% for up to five years. The employer tops
up the wage to at least 70% and pays pension contributions at a level
of 90% of the former wage, so that the partial retirement involves
only a minor reduction in pension. The Federal Employment
Service reimburses the employer for these special payments (wage
increase and increased pension contribution) if the appointment of
unemployed persons or trainees to cover the full amount of working
time lost can be proved. This entitlement to payments from the
Federal Employment Service requires a collective agreement to be
concluded in which the conditions for partial retirement are
regulated (cf. section 3.3.).
In the past, labour market policy focused on promoting active or
passive bridging phases for the older unemployed prior to early
retirement. Social plans of this kind, with transition phases of up to
five years, were made attractive to companies by extending the
duration of receipt of unemployment benefit for older workers, often
in combination with structural short-time working allowances. In
Eastern Germany in particular, older workers are supported up to
early retirement by means of programmes of structural adjustment.
The relevant Federal Employment Service programmes are often
topped up from Land funds (usually ESF funds). In practice, the
Partial Retirement Act was not used to support a gradual transition
to retirement. Instead, the legally permitted “block” model
predominated (2 years of full-time working, 2 years away from the
company while continuing to receive a wage). In 2002, the Federal
Employment Service subsidised 61,000 persons in partial retirement
Spring 2003 | European Employment Observatory Review 93
Trends
(+ 21% in comparison with the previous year) (BA 2003).
Modification of labour market policy in respect of this subsidised
withdrawal has become apparent only very recently. With its “50
plus” programme, the Federal Employment Service has begun a job
placement campaign for older workers. This programme not only
draws attention to the special subsidies available for older workers,
but also attempts to change mindsets. Attention is drawn to the
particular potential of older workers as regards performance, and
also to opportunities for exploiting this potential in
mixed-age teams within the company. Examples of corporate best
practice are used as models (http://aeltere.arbeitsamt.de/de-beispielbluethner.html).
However, owing to the high level of unemployment, a change of
paradigm is not easy for labour market policy. Nevertheless, the first
signs of progress can be detected. Under the Job-AQTIV-Gesetz
[Jobs Act – activation, (skills) training, investment, placement],
which entered into force at the beginning of 2002, continuing
training of older employees aged 50+ in companies with up to 100
employees can be subsidised. Under the laws on modern labour
market services, which entered into force on 1 January 2003, various
instruments promote the employment of older workers (see box).
New instruments promoting the employment of older
workers in the two laws on modern labour market
services
(1.1.2003)
1. An assured wage for older employees: older employees
aged 50+ who were previously unemployed or are at risk
of unemployment receive an assured net wage when they
take up lower paid employment. The wage is assured via
two payments:
• an allowance constituting 50% of the “difference in
net wage” between employment before and after
unemployment (“combined wage”, wage not liable
to tax and compulsory contributions);
• increased insurance under statutory pensions
insurance, at 90% of the assessed remuneration
that was taken as a basis for the previous
unemployment benefit.
The allowance added to the wage is tax-free.
2. Contribution bonus for employers on employment of older
workers: employers who appoint unemployed persons
aged 55+ are exempted from their contribution to
unemployment insurance (3.25%).
Increased opportunities for fixed-term employment of older
workers: the age threshold laid down in the law on part-time
and fixed-term employment, as from which fixed-term
employment contracts can be concluded with employees
without material grounds for fixing the term and with no
maximum time limit, is reduced, initially for a period of four
years, from 58 to 52.