PENSION INCREASE. Pensions from the basic scheme will increase by 0.8%. On the complementary side, the increase will be 5%. When ? We tell you everything.
[Mis à jour le 27 septembre 2022 à 08h06] Several successive increases in retirement pensions will take place, first before the end of 2022, then at the beginning of 2023. First of all, Agirc-Arrco supplementary pensions will increase by between 4.9% and 5.2% on the 1st November 2022. This increase concerns 13 million French people, and follows the revaluation of basic pensions by 4% in September, with retroactive effect from July 1st. The social partners (who decide on the increase in additional costs) will meet on October 6 at a board meeting to endorse the service value of the point.
For its part, the amount of basic retirement pensions will also benefit from an increase. For this, we will have to wait until January 1, 2023. After the revaluation of January 1, 2022 (+1.1%), then that of July 1, 2022 (+4%), the basic pension should increase by 0.8%, as set out in the Social Security financing bill (PLFSS). The beneficiaries of the ASPA as well as the survivor’s pension are also concerned. A debate on a new anticipation of the revaluation of pensions is already planned for Parliament in mid-October, in particular due to the high inflation which should continue in the first quarter of 2023.
The first payment of the pension increase for the basic scheme therefore took place on September 9, 2022, one month late. Regarding public service pensioners, the increase will take place at the end of September. Supplementary pensions will be revalued on November 1, 2022. The increase will be between 4.9% and 5.2%. Finally, pensions from the basic scheme will increase by 0.8% on January 1, 2023. Here is the complete schedule:
- September 9, 2022 : 4% increase for pensions from the basic scheme
- September 28, 2022 : 4% increase for retirees from the State civil service
- September 29, 2022 : 4% increase for retirees from the hospital public service
- 1 November 2022 : 5% increase for complementary Agirc-Arrco
- January 1, 2023 : increase of 0.8% for pensions from the basic scheme
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.
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.
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.