PENSION INCREASE. A new pension adjustment will take place on January 1, 2023. The third in one year.
[Mis à jour le 17 octobre 2022 à 08h11] Will pensions benefit from a further increase next year? The answer is yes ! Starting the January 1, 2023them basic pension will already see their third increase in a year. This time, the increase should reach 0,8%. With the latter, the government intends to index pensions to inflation (more than 5% on average over the year 2022). As a reminder, this year, pensions have already increased by 1% in January, and by 4% in July. But then, who is affected by this new increase? Pensioners affiliated with the CNAV, the CNRACL, the SRE as well as the CNAVPL. This new measure in favor of purchasing power concerns 14 million seniors, and is included in the 2023 social security financing bill (PLFSS).
As a reminder, from 1 November 2022them Agirc-Arrco supplementary pensions will be revalued by 5,12%. A decision endorsed by the Board of Directors of the plan, in the presence of representatives of employers’ organizations and trade unions on October 6th. This revaluation remains below the level of inflation (5.6% in September over one year). An increase which was decided on the basis of a change in the average salary of +4.82%, to which is added a catch-up of +0.1% in respect of inflation observed in 2021, the social partners have decided to grant the Board of Directors additional leeway of +0.2%, compatible with the plan’s financial trajectory.
After successive increases of 1% last January and 4% last July, basic pensions will once again increase by 0,8% on 1 January 2023 so as to index this increase in pensions to the level of inflation. The retirees concerned are those affiliated with:
- CNAV (national pension fund)
- CNRACL (national fund of local authority agents)
- SRE (state pension service)
- CNAVPL (national old-age insurance fund for the liberal professions).
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.
After successive increases of 1% in January 2022, then 4% last July (+60 euros per month for a pension of 1,200 euros), retirement pensions under the basic scheme will experience a further increase in January 2023.
The increase should be around 0,8%, as included in the Social Security financing bill. The government’s objective being to index the rise in pensions to the rise in inflation, measured at 5,6% in September over one year, and which should exceed 5,3% on average over the whole of 2022. With the three successive increases, the increase in pensions could then offset inflation. Here is the full 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 : increase of 5.12% 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%. 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.”
After the October 6 board meeting, Agirc-Arrco endorsed the increase in 5,12% supplementary pensions from November 1, 2022.
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.