Pension

The Pension system is composed of seven basic schemes, namely, the civilian and military pension schemes managed by the Caisse Marocaine des Retraites (CMR-RPC and CMR-RPM), the general scheme of the Régime Collectif d’Allocation de Retraite [Group Retirement Allowance Scheme] (RCAR-RG), the General Social Security Scheme, and the Pension Scheme for self-employed workers managed by the CNSS and the internal Pension Schemes.

Civilian and Military Pension Scheme:

The civilian and military pension schemes established by Laws no. 011-71 and no. 013-71, managed by the CMR, provide their members with old age pensions at the age of retirement or before that age for policy-holders opting for early retirement.

I.1) Civilian Pension Scheme:

1. Requirements:

For retirement pensions by age limit, the legal retirement age is set at 63 years.

For early retirement pensions, the right to retire is open to any male member who has completed at least 24 years of service, or to any female member who has completed at least 18 years of service.

2. Calculation Method:

• Retirement Pensions by Age Limit:

The Civilian Pension Scheme offers pensions calculated on the basis of 2% per year of valid and pensionable service as of January 1, 2017 and 2.5% of the reference salary for the length of service performed before January 1, 2017.

The reference salary, on the basis of which the retirement pension amount is calculated, is set at the average of the basic emoluments subject to pension deduction for the last ninety-six (96) months of actual service completed up to the date of employment termination.

• Early Retirement Pensions:

The amount of the early retirement pension is obtained by multiplying the number of years of service retained for its payment by 2% of the reference salary for the period of service performed before 01/01/2017 and by 1.5% of the reference salary for the period of service performed from January 1, 2017.

I.2) Military Pension Scheme:

1. Requirements:

For legal retirement pensions (or "by age limit"), the legal retirement age depends on the corps and ranks to which the military and auxiliary forces personnel belong:

• 57, 62 and 65 years old for military officers;
• 59, 62 and 65 years old for gendarmerie officers and service officers;
• 50, 52, 54, 55 and 57 for non-commissioned officers (and similar);
• 48 years for the soldiers.

For early retirement pensions, the right to retirement pension is granted to members with at least 21 years of effective service for men and 15 years for women.

2. Calculation Method:

The military regime offers pensions calculated on the basis of 2.5% of the reference salary per valid and pensionable year of service.

RCAR Scheme:

The Group Retirement Benefits Scheme (RCAR) established by the Dahir providing Law no. 1-77-216, managed by the CNRA, provides its members with old age pensions at retirement age or before that age in the case of early retirement.

1. Award Requirements:

• The duration of service must be greater than or equal to 3 years;
• The age limit for receiving the retirement allowance is set at 60 years for sedentary jobs and 55 years for active jobs (arduous, dangerous, etc.);
• The age requirements above are no longer required for members who have completed 21 years of creditable (or pensionable) service.

2. Calculation Method:

The amount of the retirement pension is fixed at 2% of the average salary of the career per year of valid and pensionable service.

The revalued career average annual salary is the average of all the salaries subject to contributions during the member’s entire career revalued at the date of the pension payment.

Social Security Scheme:

The Social Security Pension Scheme instituted by the Dahir bearing Law no. 1-72-184, managed by the CNSS, provides private sector affiliates with retirement pensions at retirement age or before that age for policy-holders opting for early retirement.

1. Requirements:

• provide evidence of an insurance-covered period of at least 3,240 days at retirement age (60 years). The age requirement is reduced to 55 for miners who can prove that they have worked down in mines for at least 5 years;
• possibility of early retirement from the age 55 with payment of a one-time (lump sum) premium by the Employer on the condition:
  • to have the approval of the employer;
• to have at least 3,240 days of contributions with 54 days of contributions, whether continuous or discontinuous, during the six months preceding the request for the premium estimate;
• to qualify for early retirement the policyholder must be at least 55 years of age, but less than 60 years, ***and it must be so and[1]*** (this condition is not required for fishermen on "shared-wage" scheme).

2. Calculation Method:

The monthly amount of the old-age pension provided for in Articles 53 and 53 bis is equal to 50% of the average salary defined as the ninety-sixth part of the sum of all salaries subject to contributions and received by the policy-holder during the ninety-six months declared before the last calendar month of insurance before the age of eligibility or the age of admission to pension.

However, the amount of the pension cannot be less than 1,000 dirhams per month (minimum pension) or more than 70% of the tax calculation base (ceiling).

Self-Employed Pension Scheme:

The pension scheme for the categories of professionals, self-employed and non-salaried persons established by Law no. 99-15, managed by the CNSS ensures to these categories, in terms of coverage of the old-age risk, retirement pensions at the age of retirement or before this age for early retirement.

1. Requirements:

Any member of the scheme who has reached the age of sixty-five (65) is entitled to an old-age pension calculated on the basis of the total of his or her accumulated points and recorded in his or her individual account.

However, this entitlement may be subject to:

• an early (lump sum) payment at the earliest at the age of sixty (60), in this case, a reduction coefficient is applied onto the number of points accumulated at the wind-up date. Early liquidation or payment is granted only if the amount of the pension is equal to or higher than the amount of the old-age pension fixed in application of the single article of the Law no. 18-96 instituting a minimum amount for the disability or old-age pensions provided by the CNSS;
• a deferral to no later than the age seventy-five (75). This deferral will result in an increase in the number of points by applying an extension factor.

2. Calculation Method:

The old-age pension is equal to the product of the total number of points registered in the individual account, affected or not by the reduction or extension factor, by the value of the point at liquidation.

The value of the point on liquidation for the year is equal to the value of the point on liquidation for the previous year multiplied by the rate of change in the average annual income subject to contributions.