the pensions of 700,000 people will increase

the pensions of 700,000 people will increase

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The supplementary pensions of many private sector retirees will increase: from this Monday, the temporary “penalty” of 10% in force since 2019 ceases to apply, under the agreement signed in October by the managers of the Agirc-Arrco scheme. Some 700,000 people are affected.

When it was introduced, this “penalty” was intended to encourage employees to work one more year, even though they met the legal conditions to leave at full rate. HAS Otherwise, they saw their pension cut by 10% for three years, with a small portion of them benefiting from a “reduced” rate of 5%.

The “bonus” retained for certain retirees

A “bonus” applied, however, to those working two to four additional years. It will be kept for those who are not affected by the pension reform.

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. Which is not negligible, knowing that the additional Agirc-Arrco share 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.

“No retroactive effect”

Pensioners were informed by e-mail and on their personal space of the “new amount of their pension”, indicated the vice-president of Agirc-Arrco, Didier Weckner, at the end of last week. Concretely, as this Monday is a public holiday, pensioners “will see it in their bank account on Tuesday April 2”. “There is no retroactive effect” for the previous months, recalled Didier Weckner.

The end of the “penalty” was decided in October by the trade union and employer organizations, co-managers of the scheme, in a new steering agreement which runs until 2026. This penalty had already ceased to apply on 1er December 2023 for all new retirees.

The agreement signed in the fall takes into account the healthier financial situation of the regime and new rules provided for by pension reformentered into force on 1er september. In particular, it made it possible to increase pensions by 4.9% to compensate for inflation. The end of the “penalty” will ultimately cost the regime 500 million euros annually.

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