PENSION INCREASE 2022. After the astonishing turnaround in the National Assembly concerning the revaluation of pensions by an additional 500 million euros, Bruno Le Maire announced a possible second increase in pensions at the start of 2023.
[Mis à jour le 28 juillet 2022 à 08h09] Will pensions benefit from a new revaluation early 2023 ? According to the Minister of Economy Bruno the Mayor, yes ! The latter assured “make a commitment that in January 2023, there will be a new revaluation, because inflation will increase by then” at the microphone of France Inter, Wednesday July 27. The amount of this hypothetical next increase has not yet been disclosed, but it should not exceed the 2%. The calculation taking into account the average inflation between November 2020-October 2021 and November 2021-October 2022. Periods when the consumer price index was much lower than in recent months (5.8% in June 2022 over one year). The Social Security financing bill for 2023 including the examination of this new increase will be debated this fall in Parliament. An announcement which follows the thunderclap which occurred a few hours earlier, in the hemicycle, concerning the vote on the increase in pensions.
On the night of Tuesday July 26 to Wednesday July 27, the opposition deputies succeeded in getting a vote on an increase in the pensions of 5.5%in other words, taking into account the actual level of inflation over the whole of 2022. An additional revaluation estimated at 500 million euros. The government, for its part, within the framework of its purchasing power bill, advocated a revaluation of basic retirement pensions up to 5.1% (1.1% in January and 4% in July). The vote of this amendment of the independent group LIOT was voted by 186 votes against 181. However, a few hours later, on the initiative of the government and in particular of the Minister of Economy Bruno the Mayor, a second deliberation was requested and gave rise to stormy exchanges in the hemicycle. Consequence: all these beautiful people returned to the revaluation of 500 million euros, approved only a few hours earlier. Adopted by 224 votes against 121 at the end of the examination, this new amendment canceled the previous one which went against the project of the government in place.
If we stick to this last amendment voted on last night, pensions should therefore be increased by 4% starting the July 1, 2022. The first payment will be made on August 9, 2022, retroactive to July 1. This increase represents a net gain of 45 euros per pensioner, for a pension of 1,200 euros. Over the whole year, with the first increase of 1% on January 1, 2022, the gain would even amount to around 60 euros per month. A revaluation notably guided by worrying inflation figures, which were close to 6% in June 2022 over one year (5.8%), and which could exceed an average of 5% over the whole year. Attention, it is not impossible that the payment of retirement pensions including the 4% increase is delayed. Delays in discussions concerning the purchasing power bill and the updating of computer systems managing the payment of pensions, in particular, could come to stop a well-oiled machine. The increase could be pushed back to the month of September 2022so, a little more patience.
The successive increases in the amount of retirement pensions (1% in January 2022 and 4% in July 2022) represent a cumulative increase of about 60 euros for a retirement pension equal to €1,200 according to Prime Minister Elisabeth Borne who gave this figure during an interview with France Bleu on June 7, 2022.
Be careful, however, it is not the exact amount that will be displayed on your total pension since remember 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. For a pension of 1,200 euros, the increase amounts to 45 euros per month.
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.
The increase in pensions is effective from Friday July 1, 2022. De facto, the very first visible increase in retirement pensions will be visible during the first payment, the following month, namely the 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. A retroactive effect to July 1 should be applied. Please note that the late start of the purchasing power bill due to heated discussions on the subject could delay the payment of this pension increase. For the time being, nothing is certain yet, but the first payment could finally take place during the month of September. A hard blow for the many beneficiaries.
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.
Supplementary pensions will not benefit from the 4% increase! Here, no official figure has yet been released, but they should still benefit from a revaluation in the month ofnext october. For the complementary Agirc Arrco, the social partners will meet on October 6, 2022 during a board of directors to formalize the service value of the point, and therefore, the increase in supplementary pensions from November 1, 2022. Last year, the negotiations initiated by the social partners led to an amendment to the 2019 agreement. less 0.5 points instead of 0.2 point to determine the evolution of retirement pensions complementary pension relative to the level of inflation.
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 Le Maire was 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! But in all likelihood, the rise in supplementary pensions is expected to be announced in early October 2022.
The overall retirement pension for civil servants consists mainly of the basic pension. A supplementary scheme, the “additional public service pension (RAFP)” also exists, but is not affected by the revaluation of retirement pensions. The increase in retirement pensions for civil servants should therefore be the same as for other employees.