More bad news for retirees, already targeted by a freeze on their basic pension next year. While supplementary pensions for former employees private sector were to increase in a range between 0.2% and 1%, it was ultimately a revaluation of… 0% which emerged from the meeting of the board of directors of Agirc-Arrco this Friday, October 17, against 1.6% last year. A freeze on the pensions of former private sector employees is a surprise, therefore, since inflation excluding tobacco anticipated by INSEE is 1% for 2025. And it is this indicator which is supposed to be taken into account to define the revaluation of Agirc-Arrco pensions.
As a reminder, the revision of the supplementary pension for former private sector employees is decided each year by the social partners, during the plan’s board of directors. The latter must respect the piloting rules of theAgirc-Arrco. Rules, defined for the period 2024-2026, by the national interprofessional agreement of October 5, 2023: “Agirc-Arrco pensions follow the evolution of consumer prices excluding tobacco estimated by INSEE for the current year, reduced by 0.4%. In this context, the board of directors has room to maneuver allowing it to adjust this development, within the limit of +/-0.4%.” With inflation excluding tobacco expected at 1% in 2025, as of November 1, the revaluation should have been between 0.2% and 1%.
The accounts of Agirc-Arrco, however, are largely in the green
To vary the cursor, union and employer organizations are supposed to evaluate “the sustainability of the evolution of the amount of pensions on the financial balance of the system and the level of its reserves”. Reserves which, according to the golden rule of Agirc-Arrco, must represent at least six months of pension payments. Which is largely the case for the regime. According to Pascale Coton, vice-president of the French Confederation of Christian Workers (CFTC), in charge of pensions, “this reserve even reaches 12 months. The position of Medef is a shame”she protests to Capital.
Employers, very critical of suspension of pension reform which should cost Agirc-Arrco 2 billion euros, had proposed a revaluation of 0.2%. This increase was unanimously denounced by the trade union organizations present, who initially demanded an increase of 1%, then resigned themselves to accepting an increase in supplementary pensions of 0.8%. A counter-proposal rejected again by the employers.
The only satisfaction, on the workers’ side this time, is the purchase value of the point. “This is the only good news of the day: we managed to maintain the purchase value of the retirement point at the same price as last year”adds Pascale Coton. With identical contributions, private sector employees will therefore obtain the same number of supplementary retirement points. Retirees will not get anything more on their next payment, November 3.
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