start of negotiations at Agirc-Arrco, the “malus” in the hot seat

by time news

2023-09-05 09:01:53

After the pension reform, the social partners open Tuesday, September 5 morning important negotiations on the operating methods of the supplementary scheme for private sector employees, Agirc-Arrco, whose full coffers leave room for unions to improve the rights workers.

Jointly managed, this scheme pays more than 87 billion euros in pensions each year to 13 million retirees. While the last framework agreement, concluded in 2019, is coming to an end, unions and employers have a tight deadline of one month to define the rules which will apply from November 1, for the period 2023-2026. Five negotiation sessions are scheduled, until October 4th.

Unlike the general scheme, the Agirc-Arrco has generated large surpluses in recent years: 2.6 billion in 2021 and more than 5 billion in 2022.

“Limit the impact of the reform”

The accounts should remain permanently in the green, according to government forecasts, which in January forecast a surplus of 1.7 billion this year and up to 6 billion in 2030, thanks to the postponement of the legal age to 64 years. The system also has 68 billion euros of ” reserve “which is more than enough to respect its ” Golden Rule “which requires having at least six months of advance payments.

After the failure of the movement against the pension reform, the unions intend to exploit this hoard. “We are going to go there in a very offensive way, to limit the impact of the reform” of the general scheme, promised the secretary general of the CGT Sophie Binet on France inter.

The bonus/penalty in sight

The amounts paid to retirees by Agirc-Arrco “represent between 20 and 60% of the amount of the pension” Total, she said. “FO intends that (this) good health benefits workers, active and retired”also advanced Force Ouvrière.

Unions should at least get the removal of the « bonus/malus »which came into force in 2019. This mechanism, put in place in a lean period, to bail out the coffers, aimed to encourage employees to work one more year – i.e. at the time up to 63 years – even then that they already fulfilled the conditions to leave at full rate.

Otherwise, they saw their supplementary pension cut by 10% for three years. With the shift in the legal age to 64, this system has no “more meaning”plead the trade unions.

In a context of inflation, the CGT as FO also claim a revaluation of pensions. A possible drop in contributions could also be on the menu.

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