Wednesday, October 24th at Restaurant Argentin at the Fairmont Hotel, Stéphane Valerie, Minister of Health and Social Affairs of Monaco since 2010, addressed the members of the Association of Women Entrepreneurs of the Principality (www.afce-monaco.org) 

Photo: Stéphane Valerie surrounded by members of the Association of Women Entrepreneurs of Monaco

The main subject discussed was the new law of retirement by distribution. In this kind of system the contributions by the active people for their old age insurance, are immediately used to pay the pensions of those retired.  This system is based on a strong solidarity between generations, contrary to the retirement by capitalization. The motion to modify the 1947 retirement law was passed unanimously by Monaco’s Parliament last September, despite recent protests from the workers’s trade union (USM). 

Employers and employees alike will have to make increased contributions towards their pensions of approximately eight euros per month. Stephan Valerie believes this reform was unavoidable and the amendments proposed by the majority of the national council aim to ensure that it is directed towards social justice and economic equity.