Future of Social Security Financing

Extract

[...] In reality, France combines today these two models, because today the contributions are no longer sufficient to finance our social security system, the tax finances it more and more (notably with the CSG: generalized social contribution) set up in 1991. Thus, all revenues contribute to the financing of Social Security: not only wages, but also non-wage revenues, retirement and unemployment benefits, and income from investments and capital. Despite this financing, social security has always been deficit-ridden, meaning that benefits are higher than contributions. This deficit is essentially linked to pensions and healthcare expenses. [...]

[...] The future of social security is therefore considered under the angle of a fiscalization of its regime (financing) and a management monopolized by the State as well as controlled by Parliament (governance). To revive 'social democracy', a structural reform of social security will be necessary In addition, social security will undoubtedly undergo evolutions at the level of its organization and its benefits (II). II - The competition and complexity of the social security regime It is necessary to see that the social security regime is complex and that it may tend to become uniform in the future but that it risks being increasingly competed by complementary regimes A - Universalization and the complexity of the organization of social security: towards unity and uniformity? [...]

[...] It can generate profits and call on shareholders. Private insurance is optional and mutual insurance is compulsory for private sector employees, however the principle remains the same: the more one contributes, the more important the reimbursement is. Thus, the reimbursement will not be the same depending on the income of each, which aggravates social inequalities and which is contrary to the very principle of social security: universal coverage for all. Thus, it is essential and absolutely necessary to preserve the social security regime. [...]

[...] In fact, if a risk is financed by tax then the legitimacy of social partners is less so the parliament and the state will ensure the governance of all these mechanisms. In fact, the state governs social security by financially intervening in this regard: the state is a key player in the field of social protection. It produces legal texts, exercises oversight over the various concerned organizations (e.g. social security organizations) and finances social protection in part through taxes and affected taxes or budgetary subsidies. [...]

[...] Therefore, in the future, we must rethink the organization of the social security regime. Otherwise, the social security regime will become a 'social benefits management company' (Frédéric Bizard). In the future, we can think about individualizing social rights, aiming to transfer the basis of social rights to the person and not to the worker and their family. This will allow us to improve the organization of the social security system: there will be a uniformization and a unity of the management of the system, since this will lead to the appearance of a single fund for all insured. [...]