PENSION INCREASE. This Thursday, October 6, the officials of the Agirc-Arrco scheme confirmed the revaluation of supplementary pensions by 5.12% on November 1, 2022.
[Updated on October 6, 2022 at 7:07 p.m.] The representatives of the employers’ organizations and trade unions, responsible for the Agirc-Arrco scheme, decided to increase the supplementary pensions of private sector employees by 5.12%, during the Board of administration of October 6, 2022. This increase for retirees will be effective from November 1, 2022. “Based on a change in the average salary of 4.82%, to which is added a catch-up of 0.1% under of the inflation observed in 2021, the social partners have decided to grant the Board of Directors an additional margin of maneuver of 0.2%, compatible with the financial trajectory of the regime” indicates the official press release of Agirc -Arrco.
“This significant revaluation, made possible thanks to the robust financial situation of Agirc-Arrco, was decided after having secured the financial balance of the plan and its level of reserves over the next 15 years”, comments Didier Weckner, president of Agirc-Arrco. The total amount of this measure is estimated at 4.5 billion euros, fully financed by the scheme. If you want to know everything about the Agirc-Arrco scheme before the increase is made official, you can now consult our dedicated article. Who contributes? How it works ? It’s happening right here:
The rules for increasing supplementary pensions (Agirc-Arrco, for example) differ from those for basic pensions. These supplementary pensions are calculated from the number of points acquired during the career, to which a value of the point is multiplied. Then, the social partners decide on a possible revaluation of the value of this point.
Generally, these pensions are increased every year on November 1st. In 2021, the value of the Agirc-Arrco point was revalued by 1%. Regarding these supplementary pensions, the Minister of the Economy Bruno Le Maire was clear: “It is up to the social partners to upgrade the supplementary pensions. We will upgrade the basic pensions.”
After the board of directors of October 6, Agirc-Arrco endorsed the 5.12% increase in supplementary pensions from November 1, 2022.
The first payment of the pension increase for the basic scheme therefore took place on September 9, 2022, one month late. Regarding public service pensioners, the increase will take place at the end of September. Supplementary pensions will be revalued on November 1, 2022. The increase will be between 4.9% and 5.2%. Finally, pensions from the basic scheme will increase by 0.8% on January 1, 2023 as set out in the Social Security financing bill. Here is the full schedule:
Civil servants, employees of the private sector… This increase in pensions concerns all the basic schemes! In other words, the pension of own right, the reversion pensions, the beneficiaries of the ASPA as well as the ASI.
The successive increases in the amount of retirement pensions (1% in January 2022 and 4% in July 2022) represent a cumulative increase of around 60 euros for a retirement pension equal to 1,200 euros according to Prime Minister Elisabeth Borne who gave this figure during an interview with France Bleu on June 7, 2022.
Be careful, however, it is not the exact amount that will be displayed on your total pension since remember that this increase only concerns basic retirement pensions, excluding supplementary ones. However, the average in France for basic pensions is 704 euros according to the statement of the National Pension Insurance Fund, the CNAV. If we take this figure, the 4% gain expected this summer represents an increase of 28 euros per month. For a pension of 1,200 euros, the increase amounts to 45 euros monthly.
The amount of pensions from the basic scheme should also be reassessed from January 2023. The increase should be around 0.8%, as set out in the Social Security financing bill. It follows a first revaluation of 4% in July 2022, within the framework of the purchasing power law voted this summer by deputies and senators. The objective for the government being to index the increase in pensions to the rise in inflation, measured at 5.8% in August over one year, and which should exceed 5% on average over the whole of year 2022. Beneficiaries of the ASPA as well as the survivor’s pension are also concerned. A debate on a new anticipation of the revaluation of pensions is already planned for Parliament in mid-October, in particular due to the high inflation which should continue in the first quarter of 2023.
The overall retirement pension for civil servants consists mainly of the basic pension. A supplementary scheme, the “additional public service pension (RAFP)” also exists, but is not affected by the revaluation of retirement pensions. The increase in retirement pensions for civil servants should therefore be the same as for other employees.
