The Agirc-Arrco supplementary scheme, co-managed by employers’ and employees’ unions, agreed on October 5 on a draft agreement committing the scheme until 2026. Some organizations are waiting for their decision but the signatures are valid this day already allows the agreement to be ratified. What to remember from a text which will govern supplementary private pensions in the coming years.
What to remember from the agreement
Revaluation of 4.9% on November 1. This is the short term decision. The supplementary pension paid for the month of November will increase by 4.9%, following the rate of inflation, after an increase of 5.12% last year.
Agirc-Arrco retirement: your supplementary pension will finally increase by 4.9% in November
End of the penalty from December 1st. Retirements after December 1 will no longer suffer any temporary reduction of 10%. The bonus/malus system disappears for new withdrawals. For those who already pay this penalty, each month, currently, the elimination will be effective on April 1, 2024. After the month of April, their pension will return to the normal amount of the supplement, without reduction.
Agirc-Arrco. Current or future withdrawals: when will your 10% penalty be removed?
Employment-retirement accumulation. The principle established by the pension reform of acquiring pension rights during a period of combined employment and retirement, for the general scheme, is now also implemented for the supplementary scheme.
Alongside current and future withdrawals, these three decisions are the most significant. However, the agreement also covers the method of annual revaluation for the coming years, the financial balance of the scheme, etc.
Where is the signing of this agreement?
Here is the principle of governance of the Agirc-Arrco regime: The representative organizations Medef, CPME and U2P for companies, and the 5 employee unions CFDT, CFE-CGC, CFTC, CGT, CGT-FO, set the strategic orientations of the regime for all 4 years, by the conclusion of a national inter-professional agreement.
However, what is only a draft agreement at this stage is not unanimous. Medef plans to sign the agreement. But neither the CPME nor the U2P follow the Medef. On the employee side, CFDT, CFTC, FO, CEF-CGC have announced their signature. There CGT has not yet decided.
The CGT initiated, on Tuesday October 10, a national consultation of its territorial, professional and specific organizations, writes the union in a press release. This consultation aims to clarify the decision that will be taken by its national management body, the confederal executive commission, which will decide whether or not to sign the CGT on October 25.
The agreement is already valid and can take effect with the current signatories
It is the pressure from the government, demanding a substantial contribution for the revaluation of small pensions and threatening via the 2024 Social Security budget to take a cut in the contributions paid to Agirc-Arrco, which complicated the signature. Medef undertakes not to integrate this contribution into the agreement, a choice that U2P and CPME do not support. In its press release released on Thursday October 12, the CPME judges the agreement to be shaky, and these two employers’ organizations regret that Medef has refused to take up their proposals to contribute to the financing of small pensions.
The announced signatures should however make it possible to confirm the agreement, even if it is still not official. In fact, as confirmed by the Agirc-Arrco regime, pending the decision of the CGT, the agreement is already valid and can take effect with the current signatories.