The Moroccan government is preparing to launch, by 2026, a structural reform of the pension system to ensure its sustainability while maintaining the rights of subscribers.
The 2026 Finance Bill provides for systemic pension reform, as a guidance note to the Bill highlights the growing imbalances linked to the increasing number of retirees in Morocco, increased life expectancy, and the declining ratio of workers to retirees. According to projections, some funds could reach a critical technical deficit before 2030 if no action is taken, reported African Press Agency.
Comprehensive pension reform
Among the solutions being considered are a gradual increase in the legal retirement age, the harmonisation of contribution rates among pension schemes, the establishment of a multi-pillar system, and the gradual convergence of public and private schemes. The government advocates "gradual and inclusive" reform, involving social partners and experts. For businesses, the emphasis on competitiveness suggests a delicate trade-off between reducing social security contributions and ensuring the sustainability of social protection funding.
The reforms would include establishing a pension scheme for self-employed workers (TNS), a category historically marginalised in social protection. Actuarial studies are underway on funding, including adapting pension contributions to the irregular and seasonal income of the self-employed.
Economists believe that the success of the reform will depend on the performance of the funds' financial investments and the diversification of their income sources.
The first reform measures are planned for 2026, with a phase of in-depth study and consultation to define the necessary adjustments. Phased implementation is expected to follow by 2027-2028.
Trade unions, private insurers such as AXA Assurance Morocco, public institutions such as the Moroccan Pension Fund, as well as stakeholders, such as Allianz Maroc, play a key role in the reform process.
Financial stability
The “2024 Financial Stability Report”, released by Bank Al-Maghrib, the central bank, said that basic pension schemes continue to experience structural imbalances, despite the temporary improvement in certain financial indicators following the implementation of the first tranche of salary increases resulting from the social dialogue of 29 April 2024.
For public sector schemes—CMR-RPC (Civil Pension Scheme managed by the Moroccan Pension Fund [CMR]) and RCAR-RG (General Scheme of the Collective Retirement Allowance Scheme)—salary increases have improved contributions, partially mitigating the deficits. However, the long-term viability of these schemes has not significantly improved.
At the CNSS (National Social Security Fund) level, the long-term branch maintains a positive overall balance, driven by favourable demographic dynamics in the private sector. However, the underpricing of benefits within this scheme and the relaxation of pension eligibility and contribution refund conditions are weakening its long-term balance.
The CMR, the RCAR and the CNSS are separate basic pension funds in Morocco. The CMR manages the pensions of civil and military civil servants, the RCAR covers non-tenured public-sector employees while the CNSS manages private-sector pensions.
The Financial Stability Report said, “In this context, reforming the sector is becoming increasingly essential. Balanced pricing of the schemes should be established at the end of this reform, making it possible to absorb a large portion of the schemes' uncovered liabilities and ensure their long-term sustainability.”