The latest Financial Stability Report, published jointly by Morocco’s Central Bank Bank Al-Maghrib (BAM), the Moroccan Capital Market Authority (AMMC) and the Insurance and Social Security Supervisory Authority (ACAPS), has identified significant challenges facing the country’s pension sector.
The report indicates that the key objective for Morocco should be the implementation of reforms that will guarantee the long-term sustainability and resilience of its pension system for future generations.
It identifies the precarious financial situation of the country’s main pension schemes. Despite recent reforms and adjustments, the financial health of these schemes remains under strain.
Morocco’s main pension schemes, including the Caisse marocaine des retraites (CMR), the Régime de prévoyance sociale (RPC) and the Régime collectif d’allocation de retraite (RCAR), are experiencing financial challenges. While recent salary adjustments could extend the lifespan of these pension reserves, they do not guarantee long-term stability, according to the report.
The general scheme of the Caisse Nationale de Sécurité Sociale (CNSS) is also facing challenges. The recent changes, which reduced the minimum contribution period for pensions from 3,240 to 1,320 days, are expected to accelerate the scheme’s deficit and deplete its reserves faster than anticipated.
The report emphasises the necessity for a significant restructuring of the pension system through the establishment of a two-pillar structure, comprising public and private components, as part of a comprehensive strategy to address past liabilities and guarantee long-term stability.
“This reform should facilitate the implementation of a pricing system for pension schemes that can address a significant portion of their uncovered past liabilities,” the report states.
The report emphasises that these reforms are vital to stabilising the pension system and ensuring the continuity of future benefits. Implementing these changes will be essential to maintaining the financial health of Moroccan pension schemes and meeting future obligations.
The report indicates that while immediate measures may provide temporary relief, significant reform is necessary to address the structural challenges facing the pension sector.
MN/te/sf/lb/as/APA