Retirement pensions to rise for 700,000 people from Tuesday, here’s why

Economy – Good news for 700,000 private sector retirees. The “penalty” The temporary 10% levy on supplementary pension ceased to apply on Monday. Hence, pensions will increase from this Tuesday, April 2, under the agreement reached in October by the managers of the AGIRK-ARCO scheme.

This penalty ceased to apply to all new retirees on December 1, 2023.

Pensioners as Monday is a public holiday “Will see it in their bank account on Tuesday April 2”, indicated the vice president of Agirc-Arrco Didier Weckner at the weekend. The pensioners were informed through e-mail and on their personal premises “The new amount of his pension”. “There is no retroactive effect” For the past months, he recalled.

Encourage employees to work harder

Introduced in 2019, the measure was aimed at encouraging employees to work an extra year despite meeting the legal conditions for full-rate leave. Failing this, they saw their pensions cut by 10% for three years, with a small proportion receiving rate benefits. “reduce” 5% no.

a “Bonus” However, two to four additional years apply to working people. It will be kept for those who are not affected by the pension reform.

An end to penalties was agreed in October by unions and employers’ organisations, co-managers of the scheme, in a new steering agreement that runs until 2026.

Pension system in better financial condition

The agreement takes into account the system’s healthy financial situation and the new rules provided by the pension reform, which came into effect on September 1. In particular, it was possible to revalue the pension by 4.9% to offset inflation.

About 42% of incoming retirees experienced “penalty” Since 2019 and 1.3% have benefited from the premium, according to figures communicated in the fall by Agirk-Arco. end of “penalty” Ultimately the regime will cost 500 million euros annually.

The Agirc-Arrco additional share represents between 30% (for the lowest incomes) and 60% (for executives) of the total pension of former private sector employees, according to the president of Agirc-Arrco Brigitte Pisa.

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