Increase in pensions: why did I not receive the increase?

Increase in pensions why did I not receive the increase

PENSION INCREASE 2022. The first payment including the increase in basic pensions was made on Friday 9 September. However, not all retirees have benefited from the 4% increase.

[Mis à jour le 12 septembre 2022 à 08h11] The first payment of your retirement pension accompanied by the 4% increase took place on Friday 9 September. Only downside, thousands of retirees have been looking for this revaluation on their pension, no trace. In another scenario, you were probably expecting this revaluation to represent a much higher amount and you are relatively disappointed. In reality, this increase in pensions concerns only the pensions of the basic scheme. Supplementary pensions (Ircantec, Agirc-Arrco) are excluded from the system, hence your astonishment. In France, the average amount of basic pensions is 704 euros according to the statement of the National Pension Insurance Fund, the CNAV. If we take this figure, the increase represents an increase of 28 euros net per month, quite far from the 45 euros net, figure put forward by the Minister of Labour, Olivier Dussopt, which corresponds to a basic pension of 1,200 euros (Rare enough to report).

Supplementary pensions will be revalued from October 2022. They will not benefit from the 4% revaluation in September. It is the social partners who decide on a possible increase in complementary. For example, 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. It should also be remembered that the revaluation of basic retirement pensions, in force since 9 September, concerns beneficiaries of survivors’ pensions, beneficiaries of the solidarity allowance for the elderly (aspa) and the supplementary invalidity allowance (ASI). This highly anticipated increase should have taken place in August, but the lengthening of the parliamentary calendar decided otherwise. A retroactive effect from July 1, 2022 is applied, hence the double payment of the 4% on September 9 (corresponding to the months of July and August).

The increase in pensions is effective from Friday July 1, 2022. De facto, the very first visible increase in retirement pensions should have been 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. Finally, the pension insurance informed of a delay in the payment of this increase which will not be able to intervene on the payment of August 9. De facto, the delay should be one month, for a very first payment on September 9, 2022. A blow for the many beneficiaries.

Civil servants, employees of the private sector… 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 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 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. For a pension of 1,200 euros, the increase amounts to 45 euros monthly.

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. This 4% increase should not, however, completely satisfy several pensioner unions who were demanding an increase of at least 4.5%, with retroactive effect from January 1.

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! But in all likelihood, the rise in supplementary pensions is expected to be announced in early October 2022. For additional Agirc Arrcothe social partners will meet on October 6, 2022 during a board meeting 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 point instead of 0.2 point to determine the evolution of retirement pensions complementary pension relative to the level of inflation.

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.

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