While waiting to know the exact level of revaluation of the basic retirement pensions (general scheme) promised from July 1 to compensate for the exceptionally high levels of inflation, we now know precisely on what date it will be applied. The new Minister of Labor, Olivier Dussopt, declared on RTL that the government is indeed planning indexation from July, which will be reflected in early August in the portfolio of retirees given that July pensions are paid on August 9 with regard to the general system.
Something to remember that this revaluation will only concern basic pensions paid by the National Old Age Insurance Fund (CNAV) and not supplementary pension schemes such as Agirc-Arrco. In concrete terms, just over 14 million people are affected.
Legislative elections
To know the exact formula for increasing pensions, we will have to wait for the result of the legislative elections which will take place on June 12 and 19, Olivier Dussopt having added on RTL that the Assembly and the Senate will then be “ seized of a text on the purchasing power which will allow this indexation on the general scheme and the basic pensions “.
Up to +4.4%?
As we indicated earlier this week, an increase of around 4% was mentioned in April by the Minister of the Economy, Bruno Le Maire. This figure of 4% corresponds to the average inflation excluding tobacco (reference for the annual revaluation of retirement pensions) recorded over six months between December 2021 and May 2022, taking into account the current inflation projection of the Insee for May, at 5.2%. However, it is still possible to take into account the level of inflation in June, which should accelerate further and could reach 5.4% according to INSEE. Indexation on the basis of inflation for the last six months would therefore be closer to 4.4%.
The revaluation could be differentiated
The government could also retain only the annual price shift observed over a single month to apply an even more advantageous revaluation. But other options likely to limit the cost to public finances are also on the table. As has already been done in the past, the upgrading could be differentiated. In particular, it could only be applied up to a certain pension ceiling, for example up to €1,200, with whether or not supplementary schemes are taken into account in this ceiling. To be continued then…
to know
The average monthly amount of the pension from the general scheme is now only €755, including €858 for men and €674 for women.