PENSION INCREASE. The revaluation of the complementary Agirc-Arrco will be effective from November 1st. What amount? And in 2023?
[Mis à jour le 20 octobre 2022 à 08h09] In an attempt to compensate for the galloping inflation observed in recent months, supplementary retirement pensions will increase by 5,12% from the 1 November 2022. A decision taken during the Board of Directors of Agirc-Arrco, on October 6 in the presence of employers’ organizations and trade unions. “This significant revaluation, made possible thanks to the robust financial situation of Agirc-Arrco, was decided after having secured the financial balance of the scheme and its level of reserves over the next 15 years”, welcomed Didier Weckner, president of the regime. The service value of the Agirc-Arrco point will be set at 1,3498 euros, against 1.2841 euros currently. The cost of this system is estimated at 4.5 billion euros over one year, entirely financed by the regime. Here is the gain that this increase could directly represent on your pension:
- Additional 500 euros: +25,60 euros
- Additional 700 euros: +35,84 euros
- Additional 900 euros: +46,08 euros
- Additional €1,000: +51,2 euros
- Additional €1,200: +61,44 euros
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. This increase 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 the inflation observed in 2021, the social partners have decided to grant the Board of Directors an additional margin of maneuver of +0.2%, compatible with the financial trajectory of the plan.
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. This new measure in favor of purchasing power concerns 14 million seniors. 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 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.