PENSION INCREASE. The revaluation of pensions will take place this summer on the basic schemes. The increase in pensions will be 4%. What does this represent for your pension? We tell you everything.
[Mis à jour le 9 juin 2022 à 17h57] We know the amount of the next increase in retirement pensions! It will be 4% as announced by the government via Prime Minister Elisabeth Borne, interviewed by France Bleu Tuesday, June 7, 2022. “We can clearly see that inflation is high and that we must respond without waiting for the usual date of revaluation of pensions. I can confirm that for all pensions, there will be, in July, a revaluation of 4%”, she confirmed. But what does that mean? First of all, be aware that this increase will only affect retirement pensions from the general scheme, and not your possible additional. Here are all the details:
Why are retirement pensions increased by 4%?
The 4% increase results from the inflation that has been affecting France for several months. It is therefore an alignment with inflation to help combat the loss of purchasing power. However, this decision is a significant development compared to the policy deployed by governments in recent years. For 10 years, retirement pensions were no longer indexed to inflation despite its inclusion in the Social Security Code, resulting in a loss of purchasing power of more than 10% in 10 years according to the orientation council of retreats. However, this 4% increase should not completely satisfy several pensioner unions who were demanding an increase of at least 4.5%, with retroactive effect from January 1.
How much is this increase on a retirement pension?
Adding to the increase of just over 1% in January, the total increase in pensions in 2022 is therefore 5%. This represents a gain of 60 euros for a retirement pension equal to 1,200 euros according to Prime Minister Elisabeth Borne who gave this figure during an interview with France Bleu on June 7, 2022. Please note, this is not however not the exact amount that will be displayed on your total pension since it should be remembered that this increase only concerns basic retirement pensions, excluding supplementary ones. However, the average in France for basic pensions is 704 euros according to the statement of the National Pension Insurance Fund, the CNAV. If we take this figure, the 4% gain expected this summer represents an increase of 28 euros per month.
Will supplementary pensions also increase in 2022?
The rules for increasing supplementary pensions (Agirc-Arrco, for example) differ from those for basic pensions. These supplementary pensions are calculated from the number of points acquired during the career, to which a value of the point is multiplied. Then, the social partners decide on a possible revaluation of the value of this point. Generally, these pensions are increased every year on November 1st. In 2021, the value of the Agirc-Arrco point was revalued by 1%. It therefore went from 1.2714 euros to 1.2841 euros. Regarding these supplementary pensions, the Minister of the Economy Bruno the Mayor became clear:It is up to the social partners to upgrade supplementary pensions. We will increase the basic pensions.” So, a little more patience to know the next revaluation of the index point!
When will the increase in pensions take place, in July or August 2022?
The next pension increase will be effective from July 1, 2022, the government has confirmed. De facto, the very first visible increase in retirement pensions will be visible during the first payment, the following month, namely August 9, 2022, a date announced by the Minister of Labor Olivier Dussopt in early June. “We want this indexation to inflation to be valid for pensions in July. Under the general scheme, the pension for July is paid on August 9,” he explained then.
Will the pension of civil servants increase this year?
The overall retirement pension for civil servants consists mainly of the basic pension. A supplementary scheme, the “additional public service pension (RAFP)”, concerns 20% of the amount of the annual gross index salary, at most. De facto, the increase in pensions on July 1, 2022 should be greater for civil servants than for other pensioners.