RABAT Jan 10 Morocco plans structural reform of
its state pension system during the five-year term of the
current government, including an increase in the retirement age,
Prime Minister Abdelillah Benkirane said.
"Our pension systems are at stake. No one wants to reach a
situation like in Greece," Benkirane said in a speech to
parliament late on Wednesday.
"Of course we will negotiate with unions, but raising the
retirement age is an obligation to avoid collapse."
The deficit of the Moroccan Pension Fund (CMR) for public
sector workers is currently on track to reach 1.28 billion
dirhams ($151 million) in 2014, 24.85 billion dirhams in 2021
and 45.66 billion dirhams in 2030, Benkirane said.
In 2013, the CMR will start to dip into its reserves, and
the reserves of all of Morocco's pension funds will be drained
by 2050 if there is no reform, the government's High Planning
Authority said in a report published last month.
The agency added that only 27 percent of Morocco's
economically active population was contributing to the pension
system, against 80 percent in countries of the Organisation for
Economic Co-operation and Development.
In addition to the CMR, the government operates a pension
fund for private sector workers and one for workers on state
Benkirane, appointed prime minister after elections in late
2011, did not give any further details about the planned pension
The government wants to repair its finances after spending
heavily to ensure social peace in the wake of the Arab Spring
uprisings elsewhere in the region.
Last August, the International Monetary Fund approved a $6.2
billion precautionary line of credit for Morocco over two years
while urging reform of the country's subsidy and pension
systems, though it did not formally tie the reforms to the aid.
Earlier this month, a government minister said the
government might start reforming its expensive system of
subsidies for food and energy in June, if a political decision
to do so were taken.