On November 1st, the Agirc-Arrco supplementary pension will be revalued. It remains to be seen by how much. While a range of 1.7% to 2.1% has emerged, the social partners, who manage the scheme, do not all agree on the final figure to be retained.
© Illustration Capital / AdobeStock
– The social partners must still agree on the increase in the Agirc-Arrco pension on November 1.
What will be the increase in income that former private sector employees will be able to enjoy when they retire on November 1st? One thing is certain, the level will have nothing to do with that of 2023, the year in which the Agirc-Arrco supplementary pension was increased by 4.9%. At that time, inflation was around 5%. A year later, this indicator is in the 2% zone. So it is at the level of this figure that the increase in the supplementary pension for 2024 should be decided.
Indeed, the agreement established by the social partners, managers of the scheme, stipulates that until 2026, the revaluation of the service value of the Agirc-Arrco point is based on inflation. However, it adds a clarification: this data can be reduced, to guarantee the financial stability of the scheme, maximum of 0.4 points. And it is around this room for maneuver that employers and unions are struggling, for the moment, to agree. A disagreement emerged, particularly during the technical and financial commission which met this Wednesday, September 18.
You are on a small pension and you are suffering from it? Tell us about your daily life
Fear for the financial health of the regime
Two camps are emerging. On one side, the defenders of this 0.4 point drop, called the “sustainability coefficient”, in the name of the stability of Agirc-Arrco reserves. On the other, those who believe that remaining at the level of inflation would not put the regime’s finances in danger. “Today, the inflation figure is around 2.1%, so we can expect a revaluation of 1.7%.notes Frédéric Romain of the CFTC. If we do not take into account this sustainability coefficient, projections show that there is a risk of affecting reserves significantly.”he warns. An opinion also supported by the employers. “The revaluation at the end of 2023 was very generous. The agreement provides for -0.4 points compared to inflation. We would not understand if the agreement were not strictly applied this year. It is a matter of balance between generations.”judge Eric Chevée, vice-president of the Confederation of Small and Medium-Sized Enterprises (CPME).
This fear for the regime’s finances is far from being shared. “Given the results at 15 years, we can grant at least a 2% increase without applying the 0.4 point decrease”considers Michel Beaugas of Force Ouvrière. Same observation on the CGT side. “For us, pensions must be revalued at least to the level of inflation, without a decrease of 0.4 points. Especially since the reserves allow it.”confirms Denis Gravouil of the CGT.
>> Our service – A question about your future retirement? Our expert partners will answer you with a personalized solution
As we can see, the agreement still seems far away. But we must also be patient because the social partners do not yet have all the elements in their hands to decide. They have requested numerous projections from the technical services of Agirc-Arrco to measure the impact of the different revaluation scenarios on the finances of the system. “We must wait for all these projections to make a decision as responsible people”estimates Frédéric Romain. And also wait for the latest inflation figures, which should be published on October 15day of the Agirc-Arrco board of directors. “I’m not sure the inflation level will be higher, so I would tend to say it will be 1.7% at best.”the CFTC trader envisions.
Receive our latest news
Every week, articles to read to better anticipate your retirement.