X

Follow Us on Facebook

Urgent Reforms Needed for Morocco's Pension System Stability

Thursday 08 August 2024 - 11:16
Urgent Reforms Needed for Morocco's Pension System Stability

In a recent critical assessment, the Financial Stability Report highlights pressing issues within Morocco's pension sector, necessitating urgent reforms to ensure its future viability. The report, a collaborative effort by Morocco’s central bank Bank Al-Maghrib (BAM), the Moroccan Capital Market Authority (AMMC), and the Insurance and Social Welfare Supervisory Authority (ACAPS), presents an in-depth analysis of the challenges facing the nation's pension schemes.

The report emphasizes the fragile financial state of Morocco’s primary pension systems. Despite previous reforms, the financial health of key schemes remains under significant pressure. Notably, the Caisse Marocaine des Retraites (CMR), the Régime de Prévoyance Sociale (RPC), and the Régime Collectif d'Allocation de Retraite (RCAR) continue to struggle with financial difficulties. Recent salary adjustments might provide temporary relief but fail to ensure long-term stability.

The Caisse Nationale de Sécurité Sociale (CNSS) is also facing substantial pressure. The reduction in the minimum contribution period for pensions from 3,240 days to 1,320 days is expected to accelerate deficits and hasten the depletion of reserves.

A significant overhaul is deemed necessary, with the report advocating for a dual-pillar system comprising both public and private sectors as part of a comprehensive strategy to address existing liabilities and secure future sustainability. The introduction of a new pricing system for retirement schemes is suggested as a means to tackle unresolved commitments.

Implementing these reforms is crucial for stabilizing the pension system and safeguarding future benefits. While immediate measures might offer short-term relief, the report stresses that substantial reform is essential to address the structural challenges that persist in the pension sector.


Lire aussi