Basic pension plans
What is a retirement pension?
A retirement pension is a financial benefit paid by a pension fund to an individual upon reaching the retirement age set by the applicable pension scheme. Generally, this allowance is funded through deductions from the individual's income, as well as contributions from the employer. In addition to the insured member, the pension provided by the retirement fund also benefits their rightful beneficiaries in the event of their passing.
What is a pension scheme?
A pension scheme is designed to provide adequate coverage for specific groups of individuals. Each pension fund manages one or more schemes to serve different socio-professional categories of members.
There are two main types of pension schemes: the pay-as-you-go system and the capitalization system. In a capitalization scheme, workers accumulate savings over time to finance their pensions upon reaching retirement age. Conversely, the pay-as-you-go system is based on intergenerational solidarity, where contributions from active workers directly fund the pensions of current retirees.
What are the basic pension schemes in Morocco?
General Basic Pension Schemes
Morocco's basic pension system consists of five main schemes:
Schemes managed by the Caisse Marocaine des Retraites (CMR):
- The civil pension scheme: Covers civil servants, trainees, and tenured agents of the state, as well as employees of local authorities and certain public institutions.
- The military pension scheme: Covers personnel of the Royal Armed Forces, Auxiliary Forces, and the Royal Gendarmerie.
The Collective Retirement Allowance Scheme (RCAR): Managed by the National Pension and Insurance Fund, it covers non-tenured agents of the state and local authorities, as well as employees of public institutions subject to state financial oversight.
The Social Security Pension Scheme: Managed by the National Social Security Fund (CNSS), it covers employees in the private sector.
The Pension Scheme for Self-Employed Workers (TNS): Also managed by the CNSS, this scheme covers independent workers, liberal professionals, and all individuals engaged in non-salaried activities.
What is the role of ACAPS in the supervision and regulation of the pension sector?
The Supervisory Authority of Insurance and Social Welfare (ACAPS) plays a crucial role in overseeing the pension sector. It conducts thorough technical supervision, including document verification (off-site inspections) and on-site audits. It also ensures compliance with the regulations governing pension funds.
Moreover, ACAPS is responsible for monitoring the financial and actuarial balance of pension schemes. It proposes corrective measures to maintain or restore financial and actuarial stability.
Additionally, ACAPS safeguards the rights of insured individuals, affiliates, members, and beneficiaries by handling all claims related to the pension sector.
