Good news for private pensions: after benefiting from the early revaluation of 4% at the beginning of September of the basic pension, the complementary Agirc-Arrco will increase as every year on November 1. And, finally, the increase should come at 5%!
Puzzle, this calendar! The purchasing power law acts as an extraordinary revaluation of 4% of basic pensions, including those paid by Cnav, from the July pension. A pension was paid at the beginning of August … but the law was not published at the time. So on September 9 your basic pension increased by 4%. Better: the September pension is doubled, because Cnav retroactively gives you the August increase, which is not possible.
Next revaluation, for former private sector employees: the Wednesday, November 2. The additional plot Agirc-Arco apply this date to its annual increase. After a disappointing 1% revaluation last year, will it keep up with inflation?
Supplementary pensions: what increase can you expect?
How to upgrade complementary Agirc-Arrco?
The system is completely different from what Pension Insurance applies to the basic pension. Agirc-Arrco, a joint body that brings together 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 May 2019: it provides an annual revaluation based on the rhythm of the evolution of average annual salary of regime nationals for the current year. In other words, the estimate of the average salary per head (SMPT) estimated by INSEE for the year 2022.
Consider two other parameters: inflation and the financial sustainability food In other words: if wages rise quickly, the point will rise at the rate of inflation. Otherwise, it is the average wage per head with authority.
What is the likely revaluation, this stage?
4.8%. That is at this stage, according to our information, the result of this calculation formula for 2022, as it was presented to the representatives of unions and employers’ organizations on Tuesday September 13 in the technical and financial commission in Agirc-Arrco. Inflation higher this year than the evolution of wages, it is average wage per head which explains this development.
What compensation for last year’s weak revaluation?
+0.1 points. That is 4.9% progress on November 1, according to the first estimates presented this week by the technical committee. Why? Because last year Agirc-Arrco certainly claimed a revaluation lower than inflation, using its 0.5 point margin to preserve its financial balance: annual inflation (1) announced at 1.5% by INSEE, which allows Agirc-Arrco to apply a revaluation of 1%. Problem: Insee finally announced 1.6% annual inflation. However, the agreement provides for a automatic capture if inflation is corrected. Agirc-Arrco cannot use the margin of 0.6 points last year. So the regime was forced to correct the situation and add 0.1 point to the calculation formula in 2022. 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 various stakeholders may wish to deviate from the theoretical calculation formula. One thing is certain: the annual revaluation can be significant, possibly more than 4% applied in advance (otherwise the increase would have been expected on 1 January) of the basic pension.
What are the positions of the employee and employer unions?
We believe that we need to go further, answered MoneyVox Rgis Mezzasalma, confederal adviser on CGT pensions, who called for more motivation in the face of galloping inflation. The increase in prices may rise to 6.6% in December according to INSEE projections (and 5.3% on an annual average).
We will ask for the largest increase possible, said Michel Beaugas, confederal secretary FO with Thanks for the information. And on the employer side? A rule is set in the national interprofessional agreement and therefore it is necessary to refer to it, confirms capital Eric Cheve, from the Confederation of Small and Medium Enterprises (CPME).
When will you know what the deed is going up?
the Thursday, October 6, the day the next board of directors of Agirc-Arrco will be held. A decision-making body consisting, on the one hand, of directors appointed by the employers’ organizations Medef, CPME and U2P, and on the other hand of managers appointed by the CFDT, CFE-CGC, CFTC, FO and CGT trade unions.
Retirement: how much should your pension increase in September and then this autumn?
(1) Average annual consumer price index excluding tobacco.