The latest financial stability report, jointly issued by Morocco’s central bank, insurance and pension watchdog, and capital markets authority, once again raises serious concerns over the fragile state of the country’s pension systems. Despite temporary boosts from recent public sector pay raises secured through social dialogue, the underlying structural weaknesses of Morocco’s core public retirement plans remain firmly in place.
The pension schemes managed by the Moroccan Pension Fund (CMR) and the RCAR have seen an uptick in contributions, largely due to the rollout of the first phase of salary increases. However, this short-term injection of funds hasn’t been nearly enough to offset deeper imbalances. The CMR-RPC scheme’s technical deficit, while slightly improved, still stands at a staggering 7.2 billion dirhams. Even with a positive financial return, the overall balance remains in the red—posting a net loss of 4 billion dirhams.
The RCAR-RG system is faring no better. Contribution income has also risen there thanks to wage hikes, but the technical deficit has worsened, climbing to 4.5 billion dirhams. The only reason its books appear stable at all is due to a solid investment performance, which brought in 5.9 billion dirhams. But that’s more a temporary reprieve than a fix.
The report leaves little room for optimism. These recent improvements, driven by higher salaries, are only delaying the inevitable. Current projections suggest they may extend the solvency of the CMR-RPC reserves by just two to three years. Meanwhile, the RCAR system continues to suffer from chronic underpricing and a governance model that fails to provide long-term stability.
Even the National Social Security Fund (CNSS), which has so far benefited from Morocco’s younger private-sector workforce, isn’t immune. Its long-term scheme currently shows a surplus, but it, too, faces risks from low contribution rates and increasingly generous access to benefits.
For financial authorities, the need for systemic reform is now beyond dispute. The only way to restore balance is by overhauling the pricing structures to ensure that pension promises are fully funded. Without meaningful intervention, the gap between incoming resources and outgoing obligations will continue to grow—putting the entire foundation of Morocco’s social protection system at risk in the medium term.
