European Commission Approves French Scheme to Partially Compensate Pension Contributions in Rail Freight Transport

Strategic Insights -

The European Commission has approved a French scheme to partially compensate pension contributions in rail freight transport, allowing companies to reimburse the T2 surcharge payable by rail freight transport companies for certain statutory employees. This scheme will be in place for ten years from January 1, 2025, and has a budget of €225 million. The aim is to support the development of the rail freight sector, particularly in terms of recruitment and retaining skilled workers.

Key Takeaways:

  • The scheme will reimburse the T2 surcharge for eligible employees, who were employed by the eligible beneficiaries on January 1, 2025.
  • The scheme is open to companies carrying out activities of rail freight transport in France, including maintenance and railway safety tasks.
  • The aid will be granted to the next employer, as long as this new employer is also a company active in the rail freight sector.
  • The scheme is limited in time, with a budget of €225 million for a period of ten years.
  • The scheme has been assessed under EU State aid rules and has been found to contribute to the development of the rail freight sector, while enhancing the fluidity of recruitments of relevant workers.
  • Companies must keep the pension rights of employees who leave the company but continue working in the railway sector.

Statistics:

  • The scheme will be in place for ten years from January 1, 2025.
  • The scheme has a budget of €225 million.
  • The T2 contribution is intended for the financing of additional benefits specific to the statutory pension scheme for employees of public railway group SNCF.
  • The statutory employees who were employed by the eligible beneficiaries on January 1, 2025, will be eligible for the scheme.

Sources:

  • "Commission approves French scheme to partially compensate pension contributions in rail freight transport" (https://www.ec.europa.eu/competition/state_aid/enforcement/french_framework_aid_ rail_freight_sector_en.pdf)
  • European Commission (Commission Regulation (EU) No 651/2014)