Agirc-Arrco retirement pensions have been increased. Compared to last year, this increase is less. Here is its new amount.
Nearly 13.5 million retirees affiliated with Agirc-Arrco will see the amount of their supplementary pension increased on November 4. This increase results from a decision taken in mid-October by the social partners who manage the supplementary pension scheme for employees in the private sector.
Supplementary pensions will experience a revaluation of 1.6%a rate lower than current inflation estimated at 1.8% and much lower than the revaluation of 4.9% in 2023. For a pension of 500 euros, this increase represents around 8 euros more per month, an increase modest which could provoke mixed reactions.
However, without this revaluation, the increase could have been limited to 1.4%, in accordance with article 4 of the national interprofessional agreement of October 5, 2023. This article stipulates that the evolution of the service point, at each November 1, must take inflation into account, minus a sustainability factor of 0.40 points.
Contribution to Agirc-Arrco
Every month, private sector employees affiliated with Agirc-Arrco as well as their employers pay contributions to finance this supplementary pension fund. The distribution used to finance contributions is 40% for the employee and 60% for the employer.
Agirc-Arrco retirement calculation
In order to define the amount of the supplementary pension, it is necessary to take into account the service value of the point of the Agirc-Arrco regime, i.e. 1.4386 euros. This amount is multiplied by the number of retirement points accumulated over the employee’s career.
For example, if an employee has acquired 3,650 points over their entire career, then their supplementary retirement pension is calculated as follows: 3,650 x 1.4386 = 5,5250.89 euros per year.
Furthermore, the Agirc-Arrco website details the calculation of the number of points as follows:
Number of points = Contribution base x points calculation rate / purchase price of a point
Note that the contribution base corresponds to the gross salary (salaries, bonuses, end of fixed-term contract compensation, paid vacation compensation, tips, etc.) from which the contributions are deducted. The points calculation rate corresponds to the percentage applied to the contribution base. Finally, the purchase price of the point is the amount of contribution necessary to acquire an Agirc-Arrco retirement point.
However, to be able to calculate your retirement amount more simplyit is possible to use the Agirc-Arrco online simulator, after connecting to your personal space.
Payment by Agirc-Arrco
Most Agirc Arrco affiliates benefit from a monthly payment at the beginning of the month. Payment takes place on the 1st of each month unless the 1st falls on a public holiday or weekend.
However, people who have a payment bank account in a country other than France can in certain cases receive a quarterly payment which they have the possibility of having monthly. Furthermore, a pension with a very small amount can be the subject of a single payment, made in one go.
Bonus – Penalty of Agirc-Arrco
The penalty which reduced the retirement pension of people who left as soon as the legal age was reached was removed at the end of 2023 for new retirees who retired from December 1, 2023. For those who left before this date, the measure has been effective since April 1, 2024, affecting around 700,000 private sector retirees.
As for the bonus for policyholders who postpone their departure for 2 to 4 years, it has also been eliminated. It allowed a increase in supplementary pension from 10 to 30% for one year if the legal retirement age was raised by at least 2 years. However, this system remains applicable to retirees who already received a bonus on December 1, 2023 and to policyholders born before September 1, 1961 who delay their retirement by 2 to 4 years.
Creation of Agirc-Arrco
As of January 1, 2019, the two main supplementary pension plans, to which the majority of employees in the private sector were affiliated, merged to form one single regime. Thus, the Association for the Supplementary Retirement Scheme for Employees (Arrco) and the General Association of Executive Retirement Institutions (Agirc), became Agirc-Arrco. With this plan, employees’ contributions, which depend on their remuneration, are converted into retirement points. These are once again transformed into a pension when the employee retires. The Agirc-Arrco retirement pension is added to the general system pension provided by social security.
What are the other pension funds?
In addition to Agirc-Arrco for employees (managers and non-managers) in the private sector, there is other supplementary pension funds aimed at supplementing the basic pension paid by general pension funds. There are in particular Ircantec for non-permanent employees in the public sector and the RAFP which pays an additional retirement benefit to permanent state employees.
The general diet is broken down into several boxes like Carsat and Cnav mainly represented by private sector employees in industry, commerce and services. The MSA concerns professionals in the agricultural world.
