Increase in pensions: supplementary, what increase this November 1?

Increase in pensions supplementary what increase this November 1

PENSION INCREASE. The complementary Agirc-Arrco will benefit from a significant revaluation this Tuesday, November 1, 2022.

[Mis à jour le 31 octobre 2022 à 10h30] D-1 before the increase in supplementary pensions! As provided for by the Agirc-Arrco plan, the supplementary will be revalued by 5.12% tomorrow, tuesday november 1. “The balance found around this revaluation demonstrates once again the solid and responsible management by the social partners of a major pension scheme” declared the vice-president of Agirc-Arrco Brigitte Pisa, at the end of the last board of directors. The first payment, embellished with the increase, should land in the bank account of the beneficiaries the next day, Wednesday, November 2. In total, 13 million seniors are affected.

Remember that from the January 1, 2023will take place the new increase in basic pensionof 0.8% after the two successive increases of 1% and 4% in January and July 2022. Here, 14 million seniors are concerned. As a reminder, the Agirc-Arrco, scheme of complementary pension mandatory for employees in the private sector, is piloted by the social partners. Would you like to know more about this major player in retirement in France? Consult now our dedicated article on the subject, just below:

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 will increase by 5.12% from the November 1, 2022. A decision 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 will be set at €1.3498, against 1.2841 euros currently. The cost of this system is estimated at 4.5 billion euros over one year. This increase was decided on the basis of a change 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 additional leeway of +0.2%, compatible with the plan’s financial trajectory. Here’s what you can expect to earn, each month, with the reset:

  • Additional 500 euros per month: +€25.60
  • Additional 700 euros per month: +€35.84
  • Additional 900 euros per month: +€46.08
  • Additional 1,000 euros per month: +€51.2
  • Additional 1,200 euros per month: +€61.44

After successive increases of 1% in January 2022, then 4% last July (+60 euros per month for a pension of 1,200 euros), retirement pensions under the basic scheme will experience a further increase in January 2023.

The increase should be around 0.8%, as included in the Social Security financing bill. Complementary items will increase by 5.12% on November 1. The government’s objective being to index the rise in pensions to the rise in inflation, measured at 6.2% in October over one year, and which should exceed 5.3% on average over the whole of 2022. With the three successive increases, the increase in pensions could then offset inflation. Here is the full schedule:

  • 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 1, 2023 : increase of 0.8% for pensions from the basic scheme

Starting the January 1, 2023them basic pension will already see their third increase in a year. This time, the increase should reach 0.8%. With the latter, the government intends to index pensions to inflation (more than 5% on average over the year 2022). As a reminder, this year, pensions have already increased by 1% in January, and by 4% in July. This new measure in favor of purchasing power concerns 14 million seniors. The retirees concerned are those affiliated with:

  • CNAV (national pension fund)
  • CNRACL (national fund of local authority agents)
  • ERS (state pension service)
  • CNAVPL (national old-age insurance fund for the liberal professions).

This increase in pensions concerns all the basic schemes! In other words, the retirement of proper rightthe pensions of reversionthe beneficiaries of theASPA as well as theUPS.

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 4% increase in basic pensions depends on the public service to which you belong.

For the former civil servantswhich come under the SRE, the increase will occur end of October (you will receive for example 20 euros for July + 20 euros for August + 20 euros for September). For the hospital civil servants and local authorities, under the CNRACL, the retroactive payment of July 1 and August takes place end of Septemberat the same time as the pension increased by 4% corresponding to the month of September.

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