Morocco's Pension Fund Warns of Impending Shortfalls

Morocco's Ministry of Economy and Finance has released a report warning of impending shortfalls in the country's pension systems. The Moroccan Pension Fund (CMR) projects that the technical deficit in the civil pension system will reach 10 billion Moroccan dirhams by 2029, with reserves expected to be depleted by 2032 without reforms. The report, attached to the 2027 Finance Bill, also forecasts a technical deficit of 1.5 billion dirhams in the military pension system by 2027, rising to 2.5 billion dirhams by 2029.

According to the report, the civil pension system's technical deficit is anticipated to increase from 6.5 billion dirhams in 2027 to 10 billion dirhams in 2029. The financial portfolio's returns are expected to gradually decline from 3.6 billion dirhams in 2025 to 2.8 billion dirhams in 2029, with an expected return rate of 6% starting from the current year.

In 2025, the civil pension system recorded a technical deficit of 5.56 billion dirhams, a slight improvement from 2024 due to the disbursement of the second tranche of wage increases agreed upon during the April 2024 social dialogue. The military pension system, however, recorded a technical deficit of 1.28 billion dirhams in 2025, fully funded from the general budget.

The CMR disbursed benefits to 1.02 million beneficiaries in 2025, amounting to a total of 55.48 billion dirhams across various systems. The fund has initiated a new strategic vision for the period 2025-2027, aiming to enhance its position as a key player in public pension provision by offering an innovative, flexible, and sustainable experience for beneficiaries.

The report underscores the urgency of implementing reforms to address the projected deficits and ensure the sustainability of Morocco's pension systems. Without intervention, the civil pension system's reserves are expected to be exhausted by 2032.