Depending on the year of birth, a certain number of quarters is necessary to benefit from a full pension. For those who do not wish to extend their professional activity, here is how to acquire the missing quarters.
Following the pension reform which increases the legal retirement age from 62 to 64, many workers are forced to extend their working lives in order to obtain a full pension. People born in 1956 or 1957 must have a minimum total of 166 quarters, or 41 and a half years of contributions. However, with the new legislation, a majority of workers will have to reach 43 years.
Employees who fail to complete the required number of quarters cannot claim a full pension. In this situation, they will suffer a definitive reduction in the amount of their pension. But to avoid financial harm, three options are available to them: agree to work until the missing quarters are completed, postpone retirement until the age of the automatic full rate set at 67, or proceed with the redemption of the defaulted quarters.
In fact, buying back quarters is an option to reach the required contribution period without having to extend your career. However, the number of redeemable quarters is capped. In the private sector, only years of higher education, student internships and years incomplete in terms of contributions are eligible. This concerns the years of study leading to a diploma as well as the preparatory classes for entrance exams to the Grandes Ecoles. Regarding internships, these are those carried out in a higher education course from March 15, 2015. Finally, incomplete years correspond to those which did not allow 4 terms to be validated, for example due to part-time work, temporary work, seasonal employment, student activity or uncompensated unemployment.
Redemption is possible from the age of 20 to 67, within a maximum of 12 quarters. The price for a term varies depending on age and income. A simulator is made available on the Retirement Insurance website which covers private sector employees, self-employed workers (artisans, traders, business managers) and civil service contract workers. It allows you to obtain a precise estimate of the repurchase cost. You should count on a minimum budget of €1000 per quarter, the rate applicable to young workers receiving modest remuneration.
It should be noted that the buyback is capped at 12 quarters and that although it makes it possible to avoid a discount, it cannot, however, exceed the required contribution period depending on the year of birth and thus generate a premium. Furthermore, the sums devoted to the redemption of quarters are deductible from taxable income. In the public service, the regulations differ somewhat, with buy-back being limited to higher education years only.
