Soon the end of the malus on supplementary pensions

Employers and unions are meeting this Tuesday to begin a series of negotiations on the supplementary pension plan for private sector employees Agirc-Arrco, which concerns 26 million contributors and 13 million retirees.

The social partners, managers of Agirc-Arrco, will have to adapt supplementary pensions to the new rules which apply to the general scheme following the reform which came into force on Friday, September 1.

They should, in all probability, end the 10% penalty, which is applied to pensions for three years, unless the employee postpones his retirement age by one year. In force since January 1, 2019, this penalty had been forcefully adopted by the social partners to delay the retirement age and restore the accounts of the scheme then in deficit. But this measure appears obsolete since the pension reform postpones the retirement age by two years, to 64 years. In addition, the accounts have in the meantime become profitable again: Agirc-Arrco generated 5 billion euros in surpluses in 2022, thanks to the good performance of the job market and the dynamics of wages, and has of a comfortable mattress of 68 billion reserves.

While new surpluses are expected this year, employers and unions will also have to agree on the amount of the revaluation of pensions, applicable on November 1st. Last year, Agirc-Arrco had granted all its retirees a revaluation of pensions of 5.12%. A decision that costs 5 billion euros in a full year and represents a charge of 75 billion over fifteen years.