The French civil service complementary pension scheme, the e5bn Complément Retraite de la Fonction Publique (CREF), part of the Mutuelle Retraite de la Fonction Publique (MRFP), is to convert from a traditional caisse de retraite pay-as-you-go system to a fully funded pension scheme, managed by three public mutual institutions.
CREF, which provides complementary retirement provision to over 450,000 public sector workers, is already offering a defined contribution type pension plan alongside its caisse de retraite, which accounts for 60% of its pension provision.
The move to convert is apparently the result of compliance with a European directive passed last May to establish guidelines for mutual companies. The directive stipulates that the pensions liabilities of mutual companies must be fully funded as a capitalisation product.
The three mutual companies that will manage the assets are Mutuelle Générale de l’Education Nationale, Mutuelle de la Fonction Publique and the Mutuelle Générale.

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