PENSION INCREASE. If the pension reform were to be adopted, the minimum pension should be increased to nearly 1,200 euros. For who ? When ? We take stock.
[Mis à jour le 13 janvier 2023 à 08h09] It served as a flagship project in this new pension reform: the revaluation of the minimum pension will be effective from September 1, 2023 if the pension reform comes into force this summer. This minimum pension could therefore be raised by 100 euros, to reach almost €1,200that is 85% of minimum wage. This revaluation concerns both retirees who retire at that time, and future retirees. Craftsmen, traders with very modest incomes are particularly part of the system. Be aware, however, that to claim this increase, it is necessary to present a full careerand to have contributed the 172 quarters required, as indicated by the pension reform.
This project comes a few days after a revaluation of the basic pensions of the general pension scheme. On January 1, 2023, retirement pensions saw their third increase in less than a year. The increase amounted to +0.8% for retirees affiliated with the following funds: CNAV, CNRACL, SRE, CNAVPL, pension under survivor’s pensions the ASPA or even the UPS. In total, no less than 14 million seniors are affected by the system. Do you want to know the real impact on your personal finances? Here is the net gain, based on your basic pension:
- Basic pension of 800 euros: 6.40 euros/month
- Basic pension of 1,000 euros: 8 euro/month
- Basic pension of 1,500 euros: 12 euro/month
- Basic pension of 2,000 euros: 16 euro/month
- Basic pension of 2,200 euros: 17.60 euros/month
- Basic pension of 2,500 euros: 20 euro/month
The retirement pensions from the basic scheme had their third increase in one year, Sunday January 1, 2023. This time, the increase reached 0.8%. This third increase in one year is part of the Social Security financing bill (PLFSS) and allows the seniors concerned to pocket an additional gain of 12 euros per month for a pension of 1,500 euros, or even 16 euros monthly. for a basic pension of 2,000 euros.
The retirees concerned are those affiliated with one of the following funds:
- CNAV (National Old Age Insurance Fund)
- CNRACL (National Fund of Local Authority Agents)
- ERS (State Pensions Service)
- CNAVPL (National old-age insurance fund for the liberal professions)
- Complementary public contractors (Ircantec)
- Special diets (SNCF…)
- Independents (SSI)
The beneficiaries of the retirement of proper rightof the pensions of reversionof the’solidarity allowance for the elderly (ASPA) as well as the supplementary invalidity allowance (UPS) are also affected.
After the successive increases of 1.1% in January 2022, then 4% last July, the retirement pensions of the basic scheme experienced a new increase, Sunday January 1, 2023. Please note, the payment into your bank account, it , will only be effective from the month of February 2023.
Here is the calendar for the revaluation of pensions since September 2022:
- September 9, 2022 : 4% increase for pensions from the basic scheme
- September 28, 2022 : 4% increase for retirees from the State civil service
- September 29, 2022 : 4% increase for retirees from the hospital public service
- November 1, 2022 : increase of 5.12% for complementary Agirc-Arrco
- January 27, 2023 : payment of the 0.8% increase for CNRACL affiliates
- January 30, 2023 : payment of the 0.8% increase for public service retirees
- February 9, 2023 : payment of the 0.8% increase for CNAV and MSA affiliates
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.
In an attempt to compensate for the galloping inflation observed in recent months, supplementary retirement pensions have increased by 5.12% since November 1, 2022. The decision was taken during the Board of Directors of Agirc-Arrco, on October 6, in the presence of employers’ organizations and trade unions. The service value of the Agirc-Arrco point was set at €1,349.80, against 1,284.10 euros previously. The cost of this system is estimated at 4.5 billion euros over one year. This increase was decided on the basis of an increase in the average salary of 4.82%, to which is added a catch-up of +0.1% in respect of inflation observed in 2021. The social partners have decided to grant the Board of Directors an additional margin of maneuver of +0.2%, compatible with the plan’s financial trajectory.
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 not concerned over there revaluation of 0.8% retirement pensions. However, the scheme has raised its point of 5.7% on January 1, 2023.
Former state civil servants, who come under the SRE, therefore saw their basic pension increase by 0.8% and their supplementary pension by 5.7% on 1 January 2023.