Good news for private pensions: after having benefited from an early revaluation of 4% at the beginning of September on the basic pension, the complementary Agirc-Arrco will increase as every year on November 1st. And, finally, the increase should approach 5%!
Puzzle, this calendar! The purchasing power law has acted an exceptional revaluation of 4% of basic pensions, including that paid by the Cnav, from the July pension. A pension paid at the beginning of August… but the law was not published in time. It is therefore on September 9 that your basic pension has increased by 4%. Better: the September pension was doubly enhanced, because the Cnav retroactively gave you the August increase, which had not been possible.
Next revaluation, for former private sector employees: the Wednesday, November 2. The supplementary scheme Agirc-Arrco will apply this date to its annual increase. After a disappointing 1% revaluation last year, will it keep pace with inflation?
Supplementary pensions: what increase can you expect?
How is the complementary Agirc-Arrco upgraded?
The system is completely different from that which applies to the Pension Insurance for the basic pension. Agirc-Arrco, a joint body combining employers’ organizations and employee unions, revalues the value of its retirement point on November 1 of each year, as provided for in the interprofessional agreement of November 2017. A text clarified by another agreement, dating him from May 2019: it provides for an annual revaluation based on the rhythm of the evolution of the average annual salary of regime nationals for the current year. In other words, the estimate of average salary per head (SMPT) estimated by INSEE for the year 2022.
Take into account two other parameters: inflation and the financial sustainability diet. In other words: if wages rise too quickly, the point rises at the rate of inflation. Otherwise, it is the average wage per head that is authoritative.
What is the probable revaluation, this stage?
4.8%. Such is at this stage, according to our information, the result of this calculation formula for 2022, as it was presented to the representatives of the unions and employers’ organizations on Tuesday September 13 in the technical and financial commission of Agirc-Arrco. Inflation being higher this year than the evolution of wages, it is the average salary per head which explains this progression.
What compensation for the weak revaluation of the past year?
+0.1 point. That is 4.9% progress on November 1, according to the first estimates presented this week in the technical committee. Why? Because last year Agirc-Arrco certainly assumed a revaluation lower than inflation, using its 0.5 point margin to preserve its financial balance: annual inflation (1) was announced at 1.5% by INSEE, which allowed Agirc-Arrco to apply a revaluation of 1%. Problem: Insee finally announced 1.6% annual inflation. However, the agreement provides for a automatic catch-up if inflation is corrected. Agirc-Arrco could not use a margin of 0.6 points last year. The regime is therefore forced to correct the situation and add 0.1 point to the 2022 calculation formula. So 4.9% instead of 4.8% annual increase if the projections are confirmed.
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Is this increase guaranteed?
No. The operation of Agirc-Arrco is complex and the various stakeholders may seek to deviate from the theoretical calculation formula. One thing is sure: the annual revaluation will be significant, most likely greater than 4% applied in advance (otherwise the increase would have been expected on 1 January) on the basic pension.
What are the positions of the employee and employer unions?
We believe that we must go further, replies MoneyVox Rgis Mezzasalma, confederal adviser to CGT pensions, who is calling for an additional boost in the face of galloping inflation. The rise in prices could peak at 6.6% in December according to INSEE projections (and 5.3% on annual average).
We are going to ask for the biggest possible increase, declares Michel Beaugas, confederal secretary FO at thank you for the information. And the employer’s side? A rule has been fixed by the national interprofessional agreement and therefore it is necessary to refer to it, affirms Capital Eric Cheve, from the Confederation of Small and Medium Enterprises (CPME).
When will you know what the deed increase is?
the Thursday, October 6, the day the next Agirc-Arrco board of directors is held. A decision-making body comprising, on the one hand, directors appointed by the employers’ organizations Medef, CPME and U2P, and on the other hand administrators appointed by the CFDT, CFE-CGC, CFTC, FO and CGT trade unions.
Retirement: by how much should your pension increase in September and then this fall?
(1) Average annual consumer price index excluding tobacco.