PENSION INCREASE 2022. Agirc-Arrco supplementary pensions should be upgraded quite significantly before the end of the year. When ? What increase? We tell you everything.
[Mis à jour le 22 septembre 2022 à 09h22] On November 1, 2022, Agir-Arrco will revalue the supplementary retirement pensions of former private sector employees. For the time being, no official communication from the organization in charge of supplementary pensions has appeared concerning the exact amount of this increase. However, according to our information, the social partners will meet on October 6, 2022 at a board meeting to endorse the service value of the point. The latter will make their decisions on the basis of the most recent projections in terms of changes in prices and wages, to be as close as possible to the real economic situation. The point valueit will increase between 4,9% et 5,2% according to information from Le Parisien on November 1, for the 13 million French people concerned.
But then, how do the social partners make their decision on this revaluation of supplementary pensions? In reality, two factors come into play. First, the forecast average inflation rate over the year is provided by INSEE (it should be around 5.3% in 2022). Then, with regard to the wage development index, it is estimated by taking the average between the government’s assumption, taken from the stability program and the European Commission’s assumption. This last indicator is important insofar as pensions cannot increase faster than wages, at the risk of jeopardizing the balance of the pension system.
As a reminder, the first 4% increase in pensions took place on Friday September 9 as part of the vote on the purchasing power law this summer. In reality, this increase in pensions concerns only the pensions of the basic scheme. Supplementary pensions (Ircantec, Agirc-Arrco) are excluded from the system, hence the astonishment of some people when reading their bank account. In France, the average amount of basic pensions is 704 euros according to the statement of the National Pension Insurance Fund, the CNAV. If we take this figure, the increase represents an increase of 28 euros net per month, quite far from the 45 euros net, figure put forward by the Minister of Labour, Olivier Dussopt, which corresponds to a basic pension of 1,200 euros (Rare enough to report). Are you a public service retiree? Do not panic, the revaluation will take place at the end of September.
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 resulted in 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 increase in pensions is effective from Friday July 1, 2022. De facto, the very first visible increase in retirement pensions should have been 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 indexation to inflation to be valid for pensions in July. Under the general scheme, the pension for July 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.
The first payment of the pension increase for the basic scheme therefore took place on September 9, 2022. For public service pensioners, the increase will take place at the end of September. Finally, supplementary pensions will be revalued on November 1, 2022. The increase will be between 4.9% and 5.2%.
Civil servants, employees of the private sector… This increase in pensions concerns all the basic schemes! In other words, the retirement of proper rightthe pensions of reversionthe beneficiaries of theBLADE as well as theBUT.
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 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.