Supplementary pension: here is the increase you can expect!

Retraite complémentaire

In addition to the 4% increase in basic pensions, we have boosted the pension paid. It’s for compensate for the lack to gain from the summer, it seems. That being the case, questions arise on the complementary ones and in particular the Agirc-Arrco.

Indeed, an increase is expected in November, but we do not know what percentage to expect. Will it keep up with inflation after difficult years ? Some answers in this article.

4% increase for basic pensions

Pensions have since November 2021 experienced a lot of revaluations. They first increased 1% then 1.1% and finally increased by 4% in September 2022. However, in November 2021, inflation reached 2.8%.

You see the pattern! 1% increase to cope with inflation of 2.8%. For its part, INSEE provided a forecast rate of inflation 1.5%. A year ago, the Agirc-Accro assumed a revaluation lower than inflation.

Basic pensions however, were revalued by 1.1% on January 1, 2022. It was the CNAV that decided so. And this, by complying with a complex calculation formula that is not very responsive to sudden increases.

This meant that pensioners could this summer legitimately claim to be losers from inflation. Then comes purchasing power law and the 4% increase in basic pensions.

The latter has only been effective since September 9 for CNAV beneficiaries. Former civil servants, on the other hand, must wait until September 29. Howeverthis increase concerns only basic pensions.

2% increase for complementary?

The importance of the basic retirement weight may differ from one retiree to another. For certain small pensions: three quarters of the monthly pension; for others: less than half. Or minimal for the majority of ex-civil servants.

After the Cnav reboosted the September 9 payment, 13 million private pensioners hope the same for Agirc-Arrco. At the beginning of October, a board meeting will take place to decide on the annual increase.

This will bring together employee unions and representatives of employers. The decision taken will be effective on the pension paid on Wednesday 2 November. The current rumors whisper that this revaluation could be close to the 2.9% of the increase applied to unemployment benefits.

If that is the case, pensioners will not be happy. Moreover, Dominique Fabre believes that “it would be incomprehensible if there were no significant revaluation”. Dominique Fabre is CFDT Retired General Secretary.

Pascale Coton told Merci pour l’info that she demanded a 4% increase. She is a negotiator at Agirc-Arrco for the CFTC. Other sources speak of a probable revaluation lower than the annual inflation 2022.

Nevertheless, higher than the 4% increase anticipated applied to the basic plans this summer. It could be close to 5%. Regarding annual inflation, INSEE estimates thatit will be 5.3%.

Why is there no upgrade yet?

The regime has a reason do not increase all pensions at the same pace. According to the founder and director of Sapiendo Retraite, Valérie Batigne, it is by obligation of financial balance.

Indeed, Agirc-Arrco must have solid financial accounts with significant reserves to break even. This balance is largely based on contributions from active employees.

Ms. Batigne stressed that Agirc-Arrco cannot afford to risk a loss that would aggravate the deficit. What the Cnav risks with the increases of 4% and 1.1% in January that the State has decided.

This financial equilibrium obligation applies to almost all schemes. It is a game which consists in balancing the contributions of employees and pensions paid to retirees.

There are, however, a few exceptions. The basic plan of the Cnav, the basic scheme for civil servants have no obligation to comply with financial ratios. The same goes for special diets.

This is what Valérie Batigne recalled while fearing the very different fortunes according to the profiles of the retirees. She hinted that it is likely that there are large discrepancies in revaluations This year.

Indeed, some plans can consolidate their long-term accounts. This, by increasing pensions at a slower pace than inflation while others will follow rising prices.

“There will also be a gap between the plans forced to ensure their financial solidity and those which do not have to make these same efforts. »

What are the estimates?

Financial reserve of the plan, increase in the average salary and the level of inflation… It is on these parameters that the the increase in the complementary Agirc-Arrco.

That said, it would seem that Agirc-Arrco’s estimates on wage growth exceeds 4.5%. Which is good news. Indeed, according to Régis Mezzasalma, the increase in the average per capita salary in the forecasts would reverse the trend.

Which, it seems, would be a pleasant surprise. That said, the possible revaluation of the complementary Agirc-Arrco at the level of inflation cannot be completely ruled out. The CGT even claims an extra boost to the usual calculation rule.

A possible possibility. It should be noted that Régis Mezzasalma is the confederal adviser on pensions at the CGT. Here is an illustration of what could affect a former private sector employee.

With 1,500 euros of net pension in 2022, of which 1000 euros from the CNAV and 500 euros from Agirc-Arrco :

  • In September: 1080 euros from the Cnav. It is the set of 4% monthly increase + compensation for the previous pension. With the Agirc-Arrco pension which has not changed, this would make a total of 1580 euros.
  • In October: 1040 euros from the Cnav on October 7, new normal pension. 500 euros from Agirc-Arrco on October 3. In total, that would be 1540 euros.
  • In November: again, 1040 euros of the Cnav on November 9 + the Agirc-Arrco, then revalued, say by 5%. Which means 525 euros of supplementary pension. Which would make a total of 1565 euros.

Pensioners are getting poorer

Christian Bourreau, president of the French Union of Retired Persons, believes that pensioners are getting poorer over the years. According to him, the revaluations of the last years, on the basic and complementary pensions, under-compensate for inflation.

Those who retired in 2007 have since lost 6.1% of purchasing power on their Cnav pension. And this, every month if we consider what the UFR thinks. On an Arrco supplement, the loss is 6.7%.

These losses, believes the UFR, are due to too low pension increases and the rise in the CSG in 2018. According to Sapiendo, the pensions Agirc-Arrco fell 4.2% against inflation over the last 10 years.

This estimate concerns only plans complementary. On the other hand, the additional public service pension fell only 1.2% over the same period. 2% for the complementary lawyers.

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