France and the Republic / A Record of Things Seen and Learned in the French Provinces During the 'Centennial' Year 1889

by William Henry Hurlbert

Why the socialistic principles at the bottom of the National Retiring Fund for workmen should not be extended to others than working-men it is not easy to see. The French pension-list is now very heavy. It figures in this year's budget at nearly a hundred millions of francs, exclusive of the military and naval pensions, which amount to about one hundred and twenty-five millions more, and without counting the débits de tabac, which are in fact a kind of pensions used freely by deputies and other functionaries of influence to reward services of all sorts. Of these about two hundred were given away in 1888, the list filling five pages of the huge reports of the Finance Ministry.

The National Retiring Fund for Old Age is managed by a high committee of sixteen, which must include two deputies, two state councillors, two presidents of mutual aid societies, and one manufacturer. Workmen who choose to avail themselves of the fund may break off and renew their payments into it as they like, and increase or diminish the amount of their annual deposits without affecting by any interruption the value of their previously acquired interest in the fund. Deposits may be made in the name of any person at or after the age of three years, so that a father may in this way, if he likes, form a small property for his children. The authorisation of the father, however, is not required to validate deposits made in the name or for the benefit of a child, unless these deposits are made by the children themselves, in which case they merely show the authority of their parents as guardians until they have attained the age of sixteen. Married women may make deposits independently of their husbands, but unless these deposits are gifts to them, they are held to be equally the property of the husband and wife where these are not legally separated. In case of the absence either of the husband or of the wife for more than a year, a justice of the peace may authorise the deposit of money to the exclusive benefit of the partner on the spot. Deposits of one franc are received from one person, but in no case can one person deposit more than one thousand francs a year. The capital deposited may be alienated to the fund or reserved. In the latter case the capital may be returned, but without interest, to the representatives of the depositor in case of death. Any reserved capital may be alienated for the purpose of increasing the income at a certain age, to be named by the depositor when he signs the alienation.

The pension incomes are guaranteed by the State. They become payable at any full year of age selected by the depositor between fifty and sixty-five years. After sixty-five the pension-income is paid to the depositor from and after the first quarter-day following the deposit. Up to 360 francs the pension-incomes are not liable to be seized for debt. If they accrue from a capital presented to the depositor the donor may have them declared unsellable to their full amount.

Funds deposited in the National Sayings Bank may be transferred in whole, or in part, to the National Retiring Fund for Old Age.

Under the conditions of this fund an annual alienated deposit of 10 francs, begun at the age of thirty years, will secure the depositor at fifty an annuity of 28 fr. 62 c., at fifty-five of 47 fr. 89 c., at sixty of 81 fr. 43 c., and at sixty-five of 145 fr. 97 c.

The regulations adopted by the Anzin Council in 1886 are intended to duplicate the results of this system of the National Retiring Fund for the benefit of any workman who chooses to make himself a depositor in the National Fund to the amount of 1½ per cent. of his annual wages.

Suppose, for example, a miner earning 1,500 francs a year chooses to deposit in the National Retiring Fund 22 fr. 50 c. a year. Upon verification of this the Anzin Company will pay into the same fund for him annually an equal sum. This would give the miner who began his deposit of 22 fr. 50 c. a year at the age of thirty, a pension-income at the age of fifty of 128 fr. 74 c., or just about the pension-income which he would draw at the age of sixty-five from the National Fund if he began a payment of 10 francs a year into that fund at the age of thirty-two. A miner who began his annual deposit of 22 fr. 50 c. in the National Fund at the age of twenty-one, taking advantage then of the regulations of the Anzin Council, would enjoy at fifty a pension-income of very nearly 250 francs a year.

Under the Anzin regulations, the two payments made by and for the workmen concerned are inscribed in an individual bank-book which becomes his property. The sums paid in by the company are alienated, and to the exclusive advantage of the workman, while he is left at liberty to alienate or reserve his own payments. If he is married, of course his personal payments are held to be made one-half for the benefit of his wife.

In the case of subterranean miners, the company will begin to carry out this system as soon as they enter its service, and without regard to their nationality. In the case of the surface workmen, they must be eighteen years of age, and must have been in the service of the company for at least three years without interruption. The reasons for the difference are obvious.

The payments of the company cease at fifty years, but the workman is not obliged to draw his pension-income then, as by continuing his personal payments he can put it off, thereby increasing it until he attains the age of 55, 60, or 65.