Retirement by capitalization: civil servants already have it, but how does it work?

The track of a retirement by capitalization for all the French returns to the front of the stage. A system that already exists for civil servants: the additional public service regime. Decryption.

• 
  

  To safeguard
  

  
  
  

  Saved
  

“”Only way to save our pensions»»for the Minister of Justice Gérald Darmanin, a sine qua non condition to avoid a new postponement of the legal departure age according to Edouard Philippe, retirement by capitalization returns to the center of the debates. A debate which has also interviewed even in discussions between social partners with a view to improving the last pension reform of 2023. The secretary general of the CFDT, Marylise Léon, told Le Figaro this Wednesday, May that The subject is not “Not a taboo”. Far from doing consensus, the creation of a distribution pillar for all French people therefore becomes day after day a more credible track.

But what are we talking about precisely? In the distribution system, on which the French social model rests, “Resources, mainly made up of contributions to professional income, are used to pay the pensions of retirees at the same time”defines the pension orientation council (Cor). The assets thus contribute to pay the pensions of the retirees. With the retirement by capitalization,, “Each individual contributes for himself, or each company for their employees”continues the horn. “Pension payment is provided by the regime’s financial income”details Régis Pélissier, the director of the Additional Public Service Retirement Establishment (ERAFP), who manages the regime that has introduced since 2005 a share of capitalization in the pension of civil servants, with the Additional public service retirement (RAFP).

And the creation of this regime, to which some 4.4 million agents of the State, territorial and hospital workers are affiliated today, is not the fruit of chance: “All these agents are affiliated with basic pension plans in which they only contribute on part of their remuneration, the premiums, with exceptions, not being integrated into the contribution base”recalls Régis Pélissier. Until 2005, civil servants were created retirement rights on the basis of their gross index treatment, the equivalent of the salary. But the Premiums and allowances of these agents are a significant part – 24.4% – of their total remuneration. A lack that came to compensate for the diet that celebrates its 20th anniversary in 2025.

A compulsory pension plan for all civil servants

A Mandatory diet by pointsto which all the agents of the public service as well as their employer – a town hall or a hospital – are affiliated and contribute each month. “The agent contributes up to 5%of his premiums and allowances, the employer also at 5%, for a total contribution of 10%”figure The director of the additional retirement establishment of the public service. One limit, however: the contribution base on “accessory” remuneration of civil servants is limited to 20% of gross index treatment. “If the treatment of the agent reaches 2,000 euros and his premiums represent 500 euros, the contributions will not relate to these 500 euros but over 400 euros”gives as an example Régis Pélissier. In exchange for this contribution, the agent acquires points which will be converted to boarding during his retirement.

These contributions, taken every month from the pay sheets, abound a fund, which invests 3 billion euros each year, according to the arbitrations carried out by the RAFP board of directors, made up of the representatives of the agents and their employer. Placements oriented in market value for around 40% in equity, 40% in bonds, 10% in real estate, the balance being in particular invested in the unlisted or in infrastructure. And financial management of the payroll plan: “The average yield (sorting, internal profitability rate, editor’s note) of our portfolio – which represents 49 billion euros in market value – is displayed at 4.3% per on average since 2005. It reached 5.9% in 2024 and 8.8% in 2023, after a year 2022 which had not been favorable ”indicates Régis Pélissier.

An additional retirement of almost 500 euros per year

A financial performance which allows the RAFP board of directors to increase, every January 1, the value of service of the point which will be used to calculate the pension of the public agent when he retired. A very significant revaluation in the past two years, 4% in 2025 and 6.8% in 2024, against for example +2.2% for private pensions This year. “In the past two years, we have been able to note the service value of the point up to theInflation + 2%Pointe Régis Pélissier. And if it is not possible to follow inflation for a year, a catch -up mechanism is planned to compensate for this difference as soon as the regime’s situation allows ”assures the latter.

At the end of their careers, depending on the number of points acquired, civil servants therefore receive an additional retirement to their basic pension. An supplement of 413 euros per year for all the former agents who have contributed to the diet and 483 euros for the only retired cohort in 2024. An amount that remains limited for the time being, the scheme has only existed for 20 years, but which has gradually increased to the rhythm of civil servant contributions.