The government has included in its budget a new presentation of the pensions of civil and military officials of the State, the beginning of a “budgetary channel” that Bercy intends to renew and that should guarantee better readability of public finances.
Faced with complaints about an alleged “hidden deficit” in the pension system of civil and military agents, which would be masked by an overcontribution from the State, the government innovated by presenting for the first time the details of the conditions of this subsidy intended to balance the system.
How are public pensions financed?
The 5.8 million agents from the three sides of the public service (State, territorial, hospital) and the army depend on different pension plans. The functioning of the regime for civil and military civil servants of the State is recorded each year in a budget document annexed to the finance bill, the special “pension” allocation account (CAS).
In 2024, the four pay-as-you-go pension plans for public employees paid €92.5 billion in benefits to 6.5 million people, or almost a quarter of the spending of all pension plans. The state retirement system for public servants is financed by several sources: in particular, deductions from the salaries of agents, contributions from public employers and, above all, by a significant subsidy paid by the State to balance the system.
What does the new presentation consist of?
Until now, budget documentation did not clearly distinguish the part linked to the “classic” business contribution, comparable to that paid by entrepreneurs in common law regimes, from the state subsidy intended to balance the retirement system of civil and military agents of the State.
This situation leads to very high employer contribution rates. In 2025, they reached 78.28% for civilians and 126.07% for the military, well above the rates seen in the private sector (around 16%).
These exposed tariffs may have created confusion or even fueled complaints about a “hidden deficit” financed by public authorities through the payment of the balancing subsidy. Under the new presentation, total business contributions from civil and military officials amount to €11 billion, up from €52.4 billion in the current presentation, according to budget documents. The balancing subsidy paid by the State would amount to 41.5 billion euros.
Why does the State balance the regime?
Because the system shows a significant demographic imbalance that worsens as the relationship between contributors and pensioners deteriorates. That is, there are more pensioners than active contributors, and the State compensates for this imbalance with a subsidy that increases each year. In the State public service there are 0.9 civil servants for every retiree, the Minister of Public Accounts, Amélie de Montchalin, indicated in mid-October. The law requires above all that the diet be balanced.
Can we compare state pensions and the general system?
Difficult, according to a widely shared observation by Bercy to the Court of Auditors, due to very different rules. Particularly because the contribution bases “differ significantly,” the budget documents specify. For example, the contribution rate in the state civil service does not include bonuses, unlike the general system.
The former budget rapporteur, MP Charles de Courson, also pointed out in a report at the end of September specific additional costs of the state civil servants’ pension plan. For example, the regime pays 1.7 billion euros in disability pensions, while in the general regime they are covered by the National Old Age Insurance Fund (Cnav), and the military benefits from specific rules on early departures, said deputy Liot.
Source: BFM TV
