The FRR is an original financial instrument that was created to serve the pension system. In a pay-as-you-go system that faces the challenge of demographic aging, it is the “fourth temporary tool”, designed to ensure that system’s viability alongside such measures as extending the pay-in period, raising the rate of contribution, and decreasing the replacement rate. In fact, the FRR will be able to take on a portion of the expenses of basic private sector plans as of 2020, when the full impact of the demographic shock will begin to be felt.

In line with this goal, the FRR has made five commitments:

• Contribute to the long-term survival of the retirement pension system: with its reserves, the FRR is directly participating in the financial consolidation of the pay-as-you-go system.
• Reinforce inter-generational solidarity: the FRR represents the capital reserve that we transmit to our children so that they can rise to the challenge when members of the baby boom begin to retire in massive numbers and live longer.
• Set the performance bar high: thanks to its investment strategy and with the support of the Caisse des Dépôts, which is responsible for the Fund’s administrative management, the FRR is able to take full advantage of market trends at lower cost.
• Assume the responsibility incumbent on a long-term public investor: fiduciary responsibility towards beneficiary plans means practicing a balanced investment policy; civic responsibility towards all French citizens means conducting an investment strategy that is consistent with certain collective values in terms of social, economic and environmental development.
• Practice totally transparent management: as a key investor of public funds, the FRR provides regular disclosures to the nation on its management.

In its first years of operation, the FRR has demonstrated both strength and professionalism. The time has come for the nation to determine the ambitious and exact role that it expects the FRR to play in the quest to consolidate the retirement pension system as of 2020.