PENSION INCREASE 2022. Retirement pensions must be increased by 4% as announced under the purchasing power law. But the August payment did not include this increase. When will it be effective, what increase does this represent? Here are all the answers to your questions.
[Mis à jour le 11 août 2022 à 16h06] Still a little patience for retirees. As indicated on the retirement insurance website, the 4% increase in retirement pensions has been postponed. Acted within the framework of the purchasing power law, it will include a retroactive effect from July 1. Understand that a catch-up will be made during the first month of increase, probably in September even if nothing official has yet been announced. Pension insurance indicates on its website that the increase will not occur immediately!
“An early revaluation of pensions has been announced by the government. This revaluation of pensions will apply from your retirement in July, but will not intervene on the payment of August 9”, is it specified. Why ? Quite simply because the bill has not yet been formally adopted! “Indeed, the date on which this revaluation will be visible on your pension is not known to date because it will depend on the timetable for the adoption of the bill by Parliament”, specifies the pension insurance, still on its site. Internet. Rest assured, the text was indeed voted by Parliament on Wednesday August 3, 2022 within the framework of the purchasing power law, but the article must still be published in the Official Journal to come into full effect. To find out more about this increase, these terms, the amount it represents, go below to our questions and answers section!
The successive increases in the amount of retirement pensions (1% in January 2022 et 4% in July 2022) represent a cumulative increase of about 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 4% increase results from the inflation that has been affecting France for several months. It is therefore an “alignment” with inflation to help combat the loss of purchasing power. However, this decision is a significant development compared to the policy deployed by governments in recent years. For 10 years, retirement pensions were no longer indexed to inflation despite its inclusion in the Social Security Code, resulting in a loss of purchasing power of more than 10% in 10 years according to the orientation council of retreats. However, this 4% increase should not completely satisfy several pensioner unions who were demanding an increase of at least 4.5%, with retroactive effect from January 1.
The increase in pensions is effective from Friday July 1, 2022. De facto, the very first visible increase in retirement pensions should be visible during the first payment, the following month, namely the August 9, 2022, a date announced by the Minister of Labor Olivier Dussopt in early June. “We want this inflation indexation to be valid for July pensions. Under the general scheme, the July pension is paid on August 9,” he explained then. A retroactive effect to July 1 should be applied. Finally, the pension insurance informed of a delay in the payment of this increase which will not be able to intervene on the payment of August 9. For the time being, nothing is certain yet, but the first payment could finally take place during the month of September. A hard blow for the many beneficiaries.
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%. It therefore went from 1.2714 euros to 1.2841 euros. Regarding these supplementary pensions, the Minister of the Economy Bruno Le Maire was clear: “It is up to the social partners to upgrade supplementary pensions. We will increase the basic pensions.” So, a little more patience to know the next revaluation of the index point! But in all likelihood, the rise in supplementary pensions is expected to be announced in early October 2022. For additional Agirc Arrcothe social partners will meet on October 6, 2022 during a board meeting to formalize the service value of the point, and therefore, the increase in supplementary pensions from 1 November 2022. Last year, the negotiations initiated by the social partners led to an amendment to the 2019 agreement. less 0,5 point instead of 0.2 points to determine the development of supplementary retirement pensions in relation to the level of inflation.
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.