Budget acts and social security finance acts have considerably modified CADES’ resources and objectives over the years:
It sets the terms and conditions for the transfer in 2021 to the Caisse d'amortissement de la dette sociale of the deficits of the general scheme, the Fonds de solidarité vieillesse (old age solidarity fund), the Caisse nationale de retraites des agents des collectivités locales (national pension fund for local authority employees) and public health establishments, introduced by Article 1 of Act No. 2020-992 of August 7, 2020, on the social debt and autonomy.
Approval of amortization for 2019: €16.3 billion; corrected target for 2020: €15.9 billion; amortization target for 2021: €17 billion.
Set the final amounts of 2020 CADES’ redemption of the accumulated deficits as of 31 December 2019 of the illness branch of the general scheme, of the elderly solidarity fund, of the elderly branch of the self-employed agricultural scheme and of the CNRACL pursuant to Article 1 of the law No. 2020-992 of 7 August 2020.
Modifies the Ordonnance no. 96-50 of 24 January 1996 - art. 4 (V)
• Accumulated deficits as of 31 December 2019 of the illness branch of the general scheme, of the elderly solidarity fund, of the elderly branch of the self-employed agricultural scheme and of the CNRACL are covered by transfers from CADES to ACOSS up to a limit of 31 billion euros, carried out no later than June 30, 2021.
• Future 2020-2023 deficits of the health, elderly and family branches of the general scheme, the elderly solidarity fund and the elderly branch of the self-employed agricultural scheme are covered by transfers from CADES to ACOSS up to a limit of 92 billion euros. Payments are made each year from 2021. Their dates and amounts are set by decree.
• Maturities of loans contracted on December 31, 2019 by health establishments under the public hospital service are covered by transfers from CADES to ACOSS, from 2021, up to a limit of 13 billion euros.
Article 1 stipulates that any new transfer of debt to CADES is accompanied by a resource increase in order not to extend the social debt amortization period beyond December 31. 2033. This article was declared constitutional and approved by the Constitutional Council (decision no. 2020-804 DC of August 7, 2020).
Approval of the 2018 redemption of 15.4 billion euros, of the adjusted 2019 target of 16.0 billion euros and of the 2020 target of 16.7 billion euros.
Approval of the 2017 redemption of 14.8 billion euros, of the adjusted 2018 target of 15.4 billion euros and of the 2019 target of 16.0 billion euros.
Approval of the 2016 redemption of 14.4 billion euros, of the adjusted 2017 target of 14.8 billion euros and of the 2018 target of 15.2 billion euros.
Approval of the 2015 redemption of 13.5 billion euros, of the adjusted 2016 target of 14.4 billion euros and of the 2017 target of 14.9 billion euros.
Approval of the 2014 redemption of 12.7 billion euros, of the adjusted 2015 target of 13.6 billion euros and of the 2016 target of 14.2 billion euros.
Approval of the 2013 redemption of 12.4 billion euros, of the adjusted 2014 target of 12.7 billion euros and of the 2015 target of 13.1 billion euros.
Approval of the 2012 redemption of 11.9 billion euros, of the adjusted 2013 target of 12.6 billion euros and of the 2014 target of 12.8 billion euros.
Approval of the 2011 redemption of 11.4 billion euros, of the adjusted 2012 target of 12.1 billion euros and of the 2013 target of 12.4 billion euros.
Redemption of the deficits of CCMSA (the central agricultural and social mutuality fund) totaling €2,466,641,896.19. Pursuant to the Organic Act of 2 August 2005, CADES was granted an additional annual €220m of sustained resources obtained from the increase of the tax on capital gains on the sale of real property (€147m) and from the decrease in the deduction allowed on the CSG and CRDS taxes for business expenses, from 3% to 1.75% (€73m)
Approval of the 2010 redemption of 5.1 billion euros, of the adjusted 2011 target of 11.4 billion euros and of the 2012 target of 11.1 billion euros.
Pursuant to Article 9, the cumulative deficits of health insurance from 2009 to 2011, of pensions for 2009 and 2010 and of family allocations from 2009 to 2011 will be covered with 68 billion euros of transfers from CADES to ACOSS in successive payments pursuant to the terms of Decree No. 2011-20 of 5 January 2011. The pension deficits from 2011 to 2018 will also be covered with up to 62 billion euros of transfers from CADES to ACOSS. Pursuant to the Organic Act of 2 August 2005, CADES was also attributed the following additional funding:
- 0.28 percentage point of the CSG tax, bringing CADES’ total share of the CSG to 0.48 point
- 1.3% of the social levy on capital income
- an annual payment by the FRR (pension reserve fund) of €2.1bn from 2011 to 2024.
Approval of the 2009 redemption of 5.3 billion euros; of the adjusted 2010 target of 5.1 billion euros and of the 2011 target of 11.4 billion euros.
The Conseil constitutionnel validated Article 1 of Organic Act No. 2010-1380 and noted that “pursuant to the terms of Article 1 of the Organic Act, the Social Security Finance Act must provide for all of the financial resources that will serve to redeem the social debt over the term allowed for this purpose” and that the effect of these measures would be to expand its own role and that it would “thus be able to verify that these resources are sufficient to ensure that this term will not be exceeded”, whether this term be that specified in the SSFA for 2011 – which will thus have to provide for certain and sustained funding capable of ensuring that the term for redeeming the social debt is not extended beyond 2025 – or the term that may be specified in subsequent SSFA. In exercising its oversight, the Conseil constitutionnel may invoke a schedule appended to the 2011 SSFA, which under section 2° of Article 1 of the Organic Act must show compliance with the requirement that a “transfer of debt that extends the social debt redemption term” will not extend this term beyond “four years”.
Article 1: granting of exceptional authorization in the 2011 SSFA to provide for debt transfers that could extend the term of CADES’ debt redemption by up to four years.
Article 3: Inclusion of representatives of the national social security funds on CADES board of directors. The Conseil constitutionnel determined that this article was not of an organic nature since it does not fall within the scope of Article 34 of the Constitution or of Articles L.O. 111-3 and subsequent of the Social Security Code. This Article 3 has therefore been “declassified” from organic to ordinary legislation.
Approval of the 2008 redemption of 2.9 billion euros, of the adjusted 2009 target of 5.1 billion euros and of the 2010 target of 5 billion euros.
Specified the final amounts of CADES’ redemption of the deficits of the cumulative health-insurance and pension deficits of the general social security scheme and of the FSV pension solidarity fund pursuant to Article 10 of the 2009 Social Security Finance Act No. 2008-1330 of 17 December 2008.
Specified the terms by which CADES is to redeem the forecast cumulative health-insurance and pension deficits of the general social security scheme and of the FSV pension solidarity fund.
Pursuant to Article 10, CADES will cover the cumulative deficits of health insurance for 2007 and 2008 (€8.8 bn), of pensions from 2005 to 2008 (€14.1 bn) and of up to 4 billion euros of the FSV (pensions solidarity fund) with transfers of up to 27 billion euros to ACOSS in three successive payments as specified in Decree 2008-1375 of 19 December 2008. Pursuant to the Organic Act of 2 August 2005, CADES was granted an additional funding resource of 0.2 percentage point of the CSG general social contribution.
Approval of the 2007 redemption of 2.6 billion euros, of the adjusted 2008 target of 2.8 billion euros and of the 2009 redemption target of 4 billion euros.
Approval of the 2.8 billion euro redemption for 2006, of the adjusted 2007 target of 2.6 billion euros and of the 2008 redemption target of 2.8 billion euros.
Specified the terms by which CADES was to adjust its redemption of the general social security scheme’s health-insurance deficits for 1999 to 2006.
Approval of the 2005 redemption of 2.6 billion euros, of the adjusted 2006 target of 2.8 billion euros and of the 2007 redemption target of 2.5 billion euros. The 2007 SSFA bill furthermore included the first proposals for quality and efficiency programmes.
Il fixe les modalités de la reprise par la CADES du déficit prévisionnel de la branche maladie du régime général pour l’exercice 2006.
The government order of 1996 was amended to authorize the minister of Finance to issue securities on behalf of CADES, after the issuance of a decree that specifies the implementation conditions.
Established an annual redemption target for CADES (approved the 3.3 billion euro redemption for 2004 and the adjusted target of 2.4 billion euros for 2005) and instituted the social levy on home-purchase savings plans over 10 years old.
Set forth the terms by which CADES will redeem the forecast health-insurance deficit of the general social security scheme for 2005.
This Act’s impact on social levies that are paid on life-insurance contracts is likely (at least over the near term) to decrease CADES’ revenue since it postpones the social levy until the life-insurance policy is settled and increases the number of policies that will be exempt from this level when the policy-holder dies. CADES currently has no information on how much these measures will cost, since this cost was not estimated before the Act was voted.
Pursuant to this act’s Article 20, for all new debt transferred to CADES there must be a corresponding new source of funding to ensure that the social debt will be redeemed within the original time frame. The organic nature of this Article was affirmed by the Conseil Constitutionnel on 29 July 2005.
Pursuant to Article 76, the cumulative national health insurance deficits as of 31 December 2003 and the forecast deficit for 2004 will be covered by payments from CADES to ACOSS of 10 billion euros on 1 September 2004 and of up to 25 billion by 31 December 2004. CADES will also make payments to ACOSS of up to 15 billion euros to cover the projected health insurance deficits for fiscal 2005 and 2006.
Required CADES to pay the balance of the claim registered in 2000 by the social security bodies in relation to the exemption of contributions subject to FOREC (the fund for financing the reform of employer social security contributions), i.e. 1,097 million euros to ACOSS on behalf of CNAMTS, CNAF and CNAVTS. This amount was paid on 1 April 2004.
Pursuant to Article 14, on 1 April 2003, CADES paid — in partial payment of the claim registered in 2000 by the social security bodies in relation to the exemption of contributions subject to FOREC (the fund for financing the reform of employer social security contributions) — 1,097 million euros to ACOSS on behalf of CNAMTS (the national health-insurance fund for salaried employees), CNAF (the national family allowance fund) and CNAVTS (the national pension fund for salaried employees), 171 million euros to CCMSA (the central agricultural and social mutuality fund), 10.5 million euros to CRPCEN (the notary clerk and employee pension and providential fund), 2.1 million euros to CANSSM (the national miners’ autonomous social security fund), and 1.8 million euros to ENIM (the national navy disabled fund).
Under this Act’s Article 38 CADES will make four payments of 3 billion euros each to the State instead of seven 1.85 billion euro payments (totalling 12.966 billion euros). The date of the last payment was changed to 31 December 2005.
As of 1 January 2001, the annual payment to the French government was reduced to 1.85 billion euros to partially compensate for the exemption of CRDS tax on the unemployment benefits of people who are not liable for income tax (Article 89 of the Finance Act for 2001); no compensation being provided for the CRDS tax exemption on retirement benefits that are not liable for income tax. The measure to exempt income below 1.4 times the annual minimum wage was annulled by the Conseil Constitutionnel.
On 1 January 1998, CADES’ mission was expanded to include the financing of the debt that ACOSS (the Central Agency of Social-Security Bodies) had accumulated since 1 January 1996 (11.4 billion euros of debt in fiscal 1996 and 1997 in addition to the 2.6 billion euros that CADES had already funded in 1996), and the pre-financing of the deficit forecast for 1998, for a total of 13.2 billion euros. Accordingly, CADES’ term was extended five years and it will continue to be funded through the CRDS tax (at the same tax base and rate) from January 2009 until 31 January 2014.
Creation, as of 1 January 1996 until 31 January 2009, of an administrative public body, placed under the control of the Minister in charge of economy and finance and of the Minister in charge of the Social Security, named Caisse d'amortissement de la dette sociale.
Mission : to balance the deficits from the Social Security general system.
Allocation of an exclusive tax : the CRDS (Contribution au remboursement de la dette sociale)