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The freezing of the increase in basic pensions has shaken retirees, regardless of their plan. Indeed, tradition dictates that basic pensions are revalued each beginning of the year. However, no increase will take place for January 2025.
The Agirc-Arrco, the supplementary plan for private sector employeesfor its part, does not follow this freezing trend. A new increase has been decided for its beneficiaries, and it is already effective. Find out the details of this revaluation.
An essential supplement for retirees
The Agirc-Arrco scheme concerns the vast majority of employees in the private sector. Each month, employees and their employers contribute to build up a retirement supplement in points. These points, accumulated over the course of your career, are transformed into a pension upon retirement. They are then added to the basic pension paid by Retirement Insurance.
Agirc-Arrco pensions are distinguished by their adjustment system. This system, like those of other schemes, aims to preserve the purchasing power of seniors. Every year, the Agirc-Arrco board of directors adjusts pensions depending on inflation. This revaluation mechanism makes it possible to limit the impact of price increases on the income of private sector retirees.
To have
Increase in pensions in 2025: the conditions to benefit from it
A modest increase, but expected
In 2024, the Agirc-Arrco board of directors voted for a revaluation of 1.6%applied to pensions from November 1. This decision is a direct response to the rise in the cost of living, although the increase is more modest than that of the previous year (4.9%).
The retirees concerned, around 13 million, were able to see this adjustment from the payment of their pension in November. However, November 1 being a public holiday, beneficiaries were only able to collect pensions on November 4. This created a bit of a wait for many retirees, but it was worth it.
In parallel with the revaluation of Agirc-Arrco pensions, retirees face another challenge. A delay in increasing their basic pensions. Initially expected in January 2025, this revaluation will not take effect until July, i.e. six months later than expected.
This discrepancy, caused by budget adjustmentsarouses concern among retirees. In fact, they have to deal with prices that continue to increase without an immediate increase in their income.
What future for Agirc-Arrco pensions?
On October 5, 2023, a new national interprofessional agreement defined the rules for piloting the Agirc-Arrco regime. It will impact the next three years, from 2024 to 2026.
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This free aid which will improve the daily lives of millions of retirees
According to this agreement, the evolution of Agirc-Arrco pensions must follow inflation (excluding tobacco) estimated by INSEE for the current year. But to this rate applies a reduction of 0.4 points. The Agirc-Arrco board of directors then has flexibility to adjust this revaluation. This is actually a range of up to 0.4 points, plus or minus.
For 2024, INSEE had forecast a price increase of 1.8% (excluding tobacco). On this basis, the initial increase for Agirc-Arrco pensions should therefore have been 1.4%. This is the equivalent of 1.8% minus 0.4 points.
However, the board of directors decided to use part of its adjustment margin. In the calculation, 0.2 points were added to the initial increase. Which explains the 1.6% increase this month of November.
