The complementary pensions of former private sector employees will not be revalued on November 1, “due to the lack of agreement” on the rate of variation between the unions and the employers who manage the regime, Agirc-Arrco announced this Friday after a tense session, according to several sources, in which the suspension of the pension reform loomed. Each year, staff and employer representatives meet to determine the pace of change, which must take into account inflation forecasts, the economic situation and plan reserves. Without an agreement, the rule is that they will not revalue.
According to information from BFMTV, unions demanded a 1% increase in pensions while employers asked for a 0.2% increase. Both proposals were rejected during the votes of the social partners.
85 billion euros in reserves
The calculation of the social partners must guarantee, for the next fifteen years, the financial balance of Agirc-Arcco. According to its golden rule, the plan must have “at any time, at least six months of pension payments.” Agirc-Arrco’s reserves today amount to more than 85 billion euros. According to a joint agreement signed in 2023 for the period 2024-2026, the board of directors should subindex the revaluation, subtracting 0.4 points from inflation. But it has some freedom: depending on the health of the regime, it can raise this rate to the peak of inflation.
With inflation estimated by INSEE at 1% for 2025, the social partners could opt this year for a variation rate of between 0.2% and 1%. Arguing the good health of the system and the looming shock for retirees, with the government’s plan to “freeze” basic retirement pensions in 2026 to save money, the unions hoped to get as close as possible to 1%. But Matignon’s promise to “suspend” the pension reform until the presidential elections, which infuriates businessmen, has complicated the equation and tense the debates.
Source: BFM TV
