Quarters without working
Outside of periods of paid activity, certain situations allow the validation of so-called "assimilated" quarters. This is first of all the case with motherhood. For employees of the general scheme, agricultural employees, craftsmen and traders, 8 quarters are automatically granted to the mother for each child born or adopted before 2010. For children born since 2010, 4 quarters of maternity are granted to the mother, and 4 terms can be shared between parents for education. In the event of adoption since 2010, the parents can freely share 8 quarters granted for the care and education of the child. Equivalent quarters are also granted in the event of illness (60 days off = one quarter), compensated unemployment (50 days of unemployment = one quarter), as well as for national service (90 days = one quarter).
To know. On the other hand, in the event of partial activity, the part of the salary reimbursed to the company by the state is not taken into account to validate quarters, since this compensation is exempt from contributions to old age insurance.
What if I miss it?
If you have not contributed enough to benefit from a full pension, and you do not wish (or cannot) work until the age of 67, you have, in some cases, the possibility of buying back quarters. Otherwise, your basic pension will be subject to a discount, of 1.25%, per missing quarter, for private sector employees, the self-employed and farmers. The supplementary pension will also be affected by a reduction coefficient, which varies according to the plans. For civil servants, the discount is 1.25% on the entire pension for each missing quarter. Conversely, beyond the full rate, a surplus of activity leads to an increase in the basic pension (and the retirement of civil servants), by 1.25% per quarter, or 5% per year. During these additional periods of activity, the assets of the private sector acquire additional retirement points. Employees can thus choose to work until the age of 70, without their employer being able to force them to retire.
To know. Whatever the length of the missing periods, the discount is limited to 20 quarters, or 25% of the basic pension. However, the premium is not capped.
Employees, pay attention to the bonus / penalty
Since January 1, 2019, a penalty of 10% has been applied for three years on the supplementary retirement (Agirc-Arrco) of private sector employees who cease their activity as soon as they have reached the age required to benefit from the full rate. To escape this penalty, you now have to work an extra year. On the other hand, if you continue your activity for two years after the age of your full rate, your supplementary pension will be increased by 10% … but for only one year. This temporary bonus is increased by 10% for each additional year of activity. It is added to the premium for the basic pension and, here again, employees who work beyond their full rate accumulate supplementary pension points.
To know. Beneficiaries of the Asbestos pension, early retirement for disability or at 62 for incapacity do not suffer any penalty. The same goes for the most modest retirees, exempt from CSG.
Check your career record
As an employee, since your first job, Retirement Insurance records the information provided by your employers every year. You can access this data via your personal online space on the lassuranceretraite.fr website. An opportunity to regularly check your career record and take stock of your acquired rights. In the event of a problem with your file, it will be important to be able to provide your supporting documents: salary slips or unemployment benefits, sickness benefits, employment contract, etc. Hence the importance of keeping these documents properly throughout your working life. On the Pension Insurance website, you can also estimate the amount of your future pension online according to your retirement age – at the legal age, at the time of the full rate or later.
To know. Please note, these indicative estimates are based on assumptions, and in particular on the stability of your income until the end of your activity.
The expert's opinion
If your career statement includes periods for which you have not or little contributed, several systems allow you to compensate for them: the buyback of periods during which you could not contribute (activity abroad, for example), the buyback years of higher education or incomplete years and the purchase of periods which have not been the subject of payment of contributions by your employer. You have two options: buy back for the rate (the buyback increases the calculation rate of your retirement) or for the rate and the duration of the insurance (the buyback increases the rate and the number of quarters taken into account for your retirement). The amount of the buyback also depends on your professional income from the last 12 months of activity and your age. A simulator allows you, on lassuranceretraite.fr, to assess the cost free of charge in relation to your career profile. You access it from the personal area.
Philippe Bainville, Pension Insurance communications department.
Bonus for large families
The basic pension for employees of the general scheme is increased by 10% if you have had or raised at least three children. This bonus is granted to both fathers and mothers. Civil servants are entitled to 5% more per child beyond the third. The Agirc-Arrco scheme grants an increase of 10% under the same conditions on the retirement fraction corresponding to the points acquired since 2012. For those acquired before this date, a distinction must be made between the Arrco points (15% for 4 children, 20% for 5, 25% for 6 and 30% for 7 or more) and Agirc (12% for 4, 16% for 5, 30% for 6 and 24% for 7).
Events not to be missed
Read also :
⋙ What budget for a retirement home?
⋙ Retirement: buy back your terms in a staggered way, interesting?
⋙ Retirement, which will change in 2021