Private supplementary pensions elevated by 1.6% in November | EUROtoday

Supplementary pensions for former non-public sector staff shall be elevated by 1.6% from 1^er November, or 0.2 factors lower than the inflation forecast by INSEE for 2024 (1.8%), Agirc-Arrco introduced on Tuesday October 15.

This enhance is equal to a rise of 13 euros per 30 days on common, for a supplementary pension of 800 euros, a supply near the board of administrators of this plan, managed collectively by employers and staff, informed Agence France-Presse. unions.

The extra a part of the pension for personal sector staff represents between 20% and 60% of the entire pension, relying on the particular person. This revaluation will price Agirc-Arrco 1.6 billion euros over a full 12 months, or 24 billion euros over fifteen years, the group specifies in a press launch.

Staff and employer representatives meet every year to find out this revaluation, which should take into consideration inflation forecasts and the financial state of affairs. They “evaluate, over the next fifteen years, the sustainability of the evolution of the amount of pensions on the financial balance and the level of its reserves”. They “make sure” that Agirc-Arrco has in reserve, “at any time, at least six months of pension payments”in accordance with its “golden rule”. Agirc-Arrco’s reserves immediately attain round 80 billion euros.

“A financially solid regime”, based on the CFDT

Under a joint settlement signed final 12 months for the interval 2024-2026, the board of administrators is meant to under-index the revaluation, subtracting 0.4 factors from inflation. There is, nonetheless, some latitude. Depending on the well being of the plan, it will probably increase this fee as much as inflation.

The very degraded state of public funds has difficult discussions this 12 months. As Agirc-Arrco is built-in into the general calculation of public accounts, employers wished to respect “a form of moderation” and restrict the revaluation to 1.5%, a supply near the matter informed AFP. The unions, arguing for the nice monetary well being of the system, wished to get nearer to inflation, specifically to compensate for the freezing of primary pensions deliberate by the federal government.

“In an extremely constrained budgetary context, Medef regrets that its responsible position was not taken into account”reacted the employers’ group to the AFP. “In order to ensure balance, the management of Agirc-Arrco must ensure that the regime is secured in the long term. » This ” compromise “ comforts “Agirc-Arrco as a financially solid and therefore sustainable scheme for retirees and future retirees”estimates the CFDT for its half.

To save 3.6 billion, the federal government determined to shift to 1^er July 2025 the revaluation of common system pensions, deliberate for 1^er January.

In 2023, Agirc-Arrco paid 92.4 billion euros to its 14 million pensioners, or 5.9 billion greater than in 2022. Pensions have been in a position to be elevated by 4.9%, due to the strong monetary state of affairs of the system and the brand new revenues introduced by the pension reform.