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France Targets Algerian Retirees’ Pensions with New Parliamentary Amendment on Social Security Funding

France Targets Algerian Retirees’ Pensions with New Parliamentary Amendment on Social Security Funding
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BY: Dr. Hana Saada  

Algiers, Algeria | November 3rd, 2024 — The French National Assembly has passed an amendment to the 2025 Social Security Funding Bill, which introduces new requirements and tax deductions affecting tens of thousands of Algerian retirees receiving French pensions. This amendment, viewed as a financial burden directly targeting these pensioners, mandates additional life verification protocols and tax contributions, stirring strong reactions among the Algerian retiree community.

The amendment, designated as No. 325, was introduced by 12 right-wing Republican deputies and focuses on Articles 161-24 and 136-1. One of the central changes is the requirement for a life certificate issued exclusively by French consular services, replacing the current practice of accepting such certificates from Algerian municipal authorities. This alteration implies that Algerian retirees will now need to provide a life certificate directly from French consulates in Algeria to continue receiving their pensions.

In justifying the amendment, its proponents argue that life certificates issued by French consulates are necessary to prevent fraud and ensure consistency. According to the Republican deputies, countries, such as Congo and China already require retirees to obtain their life certificates from French consular offices. This amendment aims to enforce the same requirement universally, with French consulates responsible for issuing annual summons for retirees receiving French pensions to verify their status.

Previously, French consulates conducted life verifications primarily for retirees over 85. Most other retirees could submit a life certificate issued by local municipal authorities in Algeria. Now, all retirees will be required to comply with the stricter consular-issued certificate process, a change that may prove challenging for many older retirees.

The amendment also includes significant financial implications. It proposes the removal of tax exemptions for pensions paid to retirees residing outside France. Currently, pensions for non-resident retirees are exempt from three French social taxes: the General Social Contribution (CSG), the Contribution for Social Debt Repayment (CRDS), and the Solidarity Contribution for Autonomy (Casa). The new amendment aims to revoke this exemption, subjecting foreign-residing pensioners to these deductions, which will considerably reduce their already modest pensions. Right-wing deputies justified this decision by stating that non-resident retirees should “contribute to national efforts to correct French public finances.”

A recent report by the French National Assembly revealed that there are over 405,000 Algerian retirees receiving pensions from French funds, amounting to more than 100 million euros per month and around 1.2 billion euros annually. Algerian retirees constitute the largest demographic among foreign recipients, followed by Portuguese (around 174,000), Spanish (175,000), and Moroccan retirees (65,000).

This legislative development has triggered frustration among Algerian retirees, who see these measures as unfair financial impositions that exploit their years of labor in France. They argue that the requirements and deductions disproportionately burden them, given that they reside outside France and are already grappling with limited financial resources. The new policies are viewed by many as another layer of economic and bureaucratic control aimed at their hard-earned pensions, with broader implications for French-Algerian relations and the welfare of Algerians who have spent much of their lives contributing to the French economy.

 

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