End of the “penalty” for Agirc-Arrco supplementary pensions this April 1

End of the “penalty” for Agirc-Arrco supplementary pensions this April 1


Since January 2019, all people born after 1956 and who retired with all their quarterly contributions were automatically applied a reduction of 10% on their supplementary pensions. A financial penalty lasting three years which could run until age 67. To cancel this “penalty” or escape it, it was necessary to work one year older than the full rate age.

There end of this penalty has been decided, in October, by the trade union and employer organizations, co-managers of the Agirc-Arrco scheme, in a new steering agreement which runs until 2026. This penalty had already ceased to apply on December 1, 2023 for all new retirees. This provision now applies to everyone. Nearly 700,000 people will see their pensions increase.

Bonus for two to four years of additional work

As this Monday is a holiday,Pensioners “will see it in their bank account on Tuesday April 2”, said the vice-president of Agirc-Arrco Didier Weckner at the end of the week. Pensioners were informed by email and on their personal space of the “new amount of their pension”.

Who says “malus”, also says “bonus”. This one, which applies to those working two to four additional years, will be retained for those who are not affected by the pension reform.

This agreement takes into account the healthier financial situation of the system and the new rules provided for by the pension reform, which came into force on September 1. In particular, it made it possible to revalue pensions by 4.9% to compensate for inflation.

Around 42% of incoming retirees have suffered the “penalty” since 2019 and 1.3% have benefited from a premium, according to figures communicated in the fall by Agirc-Arrco. As a result, the end of the “penalty” will ultimately cost the regime 500 million euros annually. The Agirc-Arrco additional portion represents between 30% (for the lowest incomes) and 60% (for executives) of the total pension of former private sector employees, according to the president of Agirc-Arrco Brigitte Pisa.


Source link