The union and employer organizations that jointly manage the complementary pension fund for employees (Agirc-Arrco) have reached an agreement on both the annual revaluation of pensions and the system of sanctions in force since 2019. This is good news for the 13.4 million retirees who receive this supplement to their basic pension paid by the National Old Age Insurance Fund (CNAV).
After an increase of more than 5% at the end of 2022, your pensions will benefit from a further increase of 4.9% from November 1. If we add these two increases, it represents a revaluation of just over 10% that almost completely offsets the inflation of the same period.
50 euros more on average from 2021
The amount of this complementary pension is by no means anecdotal. In 2021, the average pension paid each month by Agirc-Arrco amounted to 491 euros, that is, almost half of the average pension paid by old-age insurance, the basic Security pension. That is, with the new increase scheduled for November 1, the retiree who two years ago earned 491 euros each month will receive 541 euros starting next month, or 50 euros more compared to 2021.
This revaluation is added to those of the basic pension that are not concurrent. The next increase that the CNAV will apply will occur on January 1. The sum of the multiple increases decided for the two pension funds from 2021 will mean a significant increase for the affected retirees. A retiree who received, in total, 1,493 euros per month in 2021 (the average level received by the beneficiaries of these two funds) will receive 1,666 euros starting in January, these 173 euros more are equivalent to an increase of 11.6%.
No more pensions reduced by the sanction as of April 1
The agreement reached by the social partners that manage complementary pensions also provides for ending the sanction. Concretely, this means that Agirc-Arrco will stop saving by reducing the supplementary pension that applies to all new retirees who have worked long enough to benefit from the full basic pension but refuse to extend it. In fact, this is what this sanction principle has provided for since 2019.
In fact, Agirc-Arrco offered its future pensioners to work one more year – which would allow them to collect more contributions – or to retire immediately but with a reduced pension of 10% for three years. Now that the fund is generating surpluses and has a substantial reserve, the penalty principle will disappear. It will no longer apply to new retirees as of December 1. And the unions have also managed to shorten its duration for the retirees to whom it applies. Everyone will receive 100% of their complementary pension as of April 1.
Source: BFM TV
