Beyond the very notable revaluation of 5.3% of basic retirement pensions, more discreet increases and new developments directly affect the portfolio of some current or future retirees. Here are 3 pieces of information that go unnoticed, or should not be forgotten for the coming spring.
5.3%. Too much? Not enough? The sharp increase in retirement pensions certainly exceeds inflation. But in reality, it is neither a real boost nor a government gift: simply the strict application of a formula for calculating increases which generates very little responsiveness to soaring prices. .
Basic pensions increased last year slightly below inflation, just as in previous years. And they are growing this year above inflation, because the formula is based on the price index recorded over the last two years.
The famous increase is not yet visible (except in Alsace-Moselle) on the payment statements, since this 5.3% boost will be effective on the payment of Carsat or Cnav counting for January 2024, around Friday February 9 2024. But this is not the only good news of the year 2024 for current and future withdrawals. Here are 3 other new, more unnoticed features.
Retirement: all pension increases programs in 2024
1 – Basic pension ceiling: new increase, after years of freezing
For future 2024 withdrawals. Between 2020 and 2022, the Social Security ceiling (PASS) rebounded strongly by 6.9% in 2023, and climbs once again very significantly in 2024, 5.4%. A catch-up which has positive effects for those who are preparing to liquidate their retirement rights. Well, some of them…
| Annual amount | Annual increase |
|---|---|
| 39732 | 1.3% |
| 40524 | 2% |
| 41136 | 1.5% |
| 41136 | |
| 41136 | |
| 43992 | 6.9% |
| 46368 | 5.4% |
Source: Social Security Accounts – September 2023
The thawing of this ceiling in 2023 saved those who retired in recent months, and who had a comfortable salary during their best 25 years of career, to see their basic pension limited to a maximum of 1714 euros gross, the maximum threshold. The jump of 6.9% made it possible to raise this ceiling to 1,833 euros.
And the new increase in the PASS of 5.4% carries into 2024 1932 euros gross per month maximum retirement for the basic pension. This ceiling only applies to new retirements, in 2024, from January 1, and only to the basic private sector pension, that of Retirement Insurance (via Cnav or Carsat): it does not exist equivalent ceiling for the complementary Agirc-Arrco, to focus on former employees and self-employed people in the private sector.
2 – Minimum pension: new revaluation, after that of the reform
For future 2024 withdrawals. Let’s stay on the basic pension, for a departure in 2024, but go from maximum to minimum. Minimum in quotation marks because there is no real minimum pension: only a system ensuring you a minimum retirement if you tick all the boxes: full rate start with all your quarters, and 30 years of effective work for the increase. The mechanism, the minimum contributionwas revalued on September 1, the entry into force of the pension reform, increasing from 684 euros to 709 euros for the simple contributory minimum.
The minimum contributory amount and its possible increase will increase again in 2024, on January 1, by 709 733 euros for the minimum contribution and 848 876 euros in the event of a full increase. Please note: if the conditions are not met at the time of departure, you will be allocated a minimum calculated in proportion to your quarters.
| Pension amount | Conditions for receiving this minimum pension | |
|---|---|---|
| Basic pensionpaid by Retirement Insurance (Cnav, Carsat, etc.) | ||
| Minimum contribution (MiCo) | 733.03 | Full rate |
| Minimum contribution (MiCo) major | 876.13 | Full rate + 120 quarters contribution |
| Supplementary pensionpaid by Agirc-Arrco for former private sector employees | ||
| No minimum pension for the supplement | Variable amount depending on your career Please note: if the base + additional accumulation exceeds 1367.51, then the MiCo is reduced | |
Source: Cnav circular Revaluation of the minimum wage on January 1, 2024 and implications in terms of old age legislation
Minimum pension: Small pensions should not exceed 1200 euros?
3 – The end of the Agirc-Arrco penalty program if you are still paying it
For those who have recently retired. Since December 1, 2023, all retirements of former private sector employees are guaranteed without penalty from the Agirc-Arrco supplement! The penalty? This system applied a temporary discount to you (for 3 years) even if you left at full rate, the aim being to make you work longer.
Following the entry into force of the pension reform, this penalty no longer had any use. It has therefore already disappeared for new departures… but those who left recently and who are still paying it from their supplementary pension still have to wait a few months. The solidarity coefficient, official name of the penalty, will be deleted as of April 1, 2024, therefore starting from the Agirc-Arrco pension next April. However, no reimbursement of country penalties in recent months or payment in this first quarter of 2024 is provided for in the Agirc-Arrco agreement.
Agirc-Arrco retirement: what changes for your supplement with the new agreement