Following its narrow second-reading passage on December 9, the French National Assembly definitively adopted the 2026 social security financing bill (PLFSS) on December 16. A key change reverses the 2023 reform's support for the employment-retirement combination scheme, which allows retirees to work while receiving pensions, amid tightening social security budgets.
The PLFSS 2026, as previously reported after its close vote in second reading on December 9, was definitively adopted by the French National Assembly on December 16. Among its provisions, the bill significantly tightens the employment-retirement combination scheme, aimed at encouraging seniors to stay in the workforce.
The scheme offers two options: unlimited pension and earnings combination for those at full-rate eligibility and legal retirement age (64 long-term), or a capped version where total income from activity and pension stays below a threshold. A six-month wait is required before returning to the prior employer after first pension payment.
These stricter rules contrast with 2023 legislative efforts to expand the mechanism during the previous reform. Rarely debated publicly, the change faces criticism for limiting retirees' return to work amid social security budgetary constraints.
While the scheme seeks to boost senior employment, the new restrictions may reduce its uptake.