The Agirc-Arrco supplementary pension system managed by the social partners has started discussions on the revaluation of small pensions. The initiative aims to provide more help to low-income ex-private sector workers rather than go ahead with government pressure for financial compensation over pension reform.
Draft of new policy
Following last year’s negotiations with the government on increasing fines and pensions, an agreement signed last October provided for the establishment of a working group to study solidarity mechanisms towards modest income retirees from the private sector. Agirc-Arco Services estimates that the surplus generated by the pension reform amounts to about 2 billion euros, especially due to the government’s omission of a 4.9% increase in pensions in November of the same year.
In this regard, it was assessed that 18.4% of the total pension paid by Agirc-Arrco is allocated to micro-beneficiaries.. Returns from the general scheme could represent between 240 and 300 million euros per year. However, this would also imply co-management of the system with the general regime, which would lead to a loss of control over the regime of Agirc-Arrco.
Auxiliary option
In order to maintain this autonomy while meeting the objectives of the executive, the social partners propose to study. More support mechanisms to help retirees with small pensions. The idea is particularly to take account of precarious situations by giving extra points to workers on fixed-term or seasonal contracts, especially to compensate for periods of unemployment and to prevent them from losing their retirement rights when they are not engaged in the occupational sector. activity.
Importance of consultation between social partners
Faced with the challenge of upgrading small pensions and solidarity mechanisms, the active participation of social partners is necessary to find a compromise between the government’s expectations and the demands of relevant stakeholders. This includes avoiding a system of co-administration with the normal system when retirees receive pensions as high as not below the minimum contribution threshold.
While some organizations favor maintaining the status quo, others advocate the establishment of consolidation mechanisms that allow younger retirees to benefit from more substantial financial support. Therefore an in-depth consultation is necessary to identify the best possible solutions to guarantee the social protection of retirees.while ensuring that the autonomy of Agirc-Arrco is preserved in the management of its own supplementary pension system.
The Agirc-Arco initiative in favor of the revaluation of small pensions shows the desire of the social partners to strengthen solidarity towards former employees of the private sector with low incomes. This approach reflects the increasing importance given to social issues associated with population aging and the need to guarantee a decent standard of living for the most common retirees, without shying away from government pressure for simple financial recovery of these funds. Collaboration between social partners will therefore be crucial for taking appropriate and fair measures in terms of redistribution and equity.
