Supplementary pensions for former private sector employees will increase by 1.6% from 1Ahem November, or 0.2 points less than the inflation forecast by INSEE for 2024 (1.8%), Agirc-Arrco announced on Tuesday, October 15.
This increase is equivalent to an increase of 13 euros per month on average, for a complementary pension of 800 euros, a source close to the board of directors of this plan, managed jointly by employers and workers, told Agence France-Presse.
The additional part of the pension for private sector employees represents between 20% and 60% of the total pension, depending on the person. This revaluation will cost Agirc-Arrco 1,600 million euros in a full year, that is, 24,000 million euros in fifteen years, the organization states in a statement.
Representatives of staff and employers meet every year to determine this revaluation, which must take into account inflation forecasts and the economic situation. They “evaluate, over the next fifteen years, the sustainability of the evolution of the amount of pensions on the financial balance and the level of their reserves”. They “Make sure” that Agirc-Arrco has in reserve, “at any time, at least six months of pension payment”according to your “golden rule”. Agirc-Arrco’s reserves today amount to about 80 billion euros.
“A financially sound regime”, according to the CFDT
According to a joint agreement signed last year for the period 2024-2026, the board of directors should underindex the revaluation, subtracting 0.4 points from inflation. However, there is some freedom. Depending on the health of the plan, you can raise this rate up to inflation.
The very degraded state of public finances has complicated debates this year. By integrating Agirc-Arrco into the global calculation of public accounts, the businessmen wanted to respect “a form of moderation” and limit the revaluation to 1.5%, a source close to the matter told AFP. The unions, defending the good financial health of the system, wanted to get closer to inflation, in particular to compensate for the freeze of basic pensions planned by the government.
“In an extremely restricted budgetary context, Medef regrets that its responsible position has not been taken into account”The business organization reacted to the AFP. “To ensure balance, Agirc-Arrco management must ensure that the scheme is secured in the long term. » This ” commitment “ amenities “Agirc-Arrco is a financially solid and therefore sustainable plan for retirees and future retirees”esteemed by the CFDT.
To save 3.6 billion, the government decided to go to 1Ahem July 2025 the revaluation of the general system pensions, scheduled for 1Ahem January.
In 2023, Agirc-Arrco paid 92.4 billion euros to its 14 million pensioners, or 5.9 billion more than in 2022. Pensions were able to increase by 4.9%, thanks to the system’s solid financial situation and to the new income provided by the pension reform.
