New Provisions for Small Pensions: The Implementation of Pension Reform Continues

2023-08-11 08:12:00

The implementation of the pension reform is continuing with new provisions for small pensions in particular.

New decrees concerning the social security financing bill, including the pension reform, appear in the official journal this Friday, August 11. They concern the minimum pension, the solidarity allowance for the elderly (ASPA) and the creation of the orphan’s pension and the old-age insurance for carers (AVA). “These decrees concretize new rights and put an end to certain inequalities which prevailed until then: for small pensions, for caregivers, for orphans. commented the Ministry of Labor Olivier Dussopt.

Revaluation of minimum pensions for new retirees

These decrees increase the minimum pension up to €100 per month for people retiring from September 1, 2023. This measure will apply to employees, tradesmen and farmers. About 200,000 new retirees will benefit from it each year, ie regarding one in four departures. In addition, the minimum pension is now indexed to the minimum wage, and no longer to inflation.

Revaluation of the small pensions of current retirees

These decrees also increase the minimum pensions of the general scheme, the agricultural scheme and the worship scheme which took effect before September 1, 2023. Nearly 1.7 million retirees will benefit from a reassessment of their retirementof which approximately 700,000 will receive payment as early as fall 2023. Subsequent resets will take place in spring 2024, retroactive to September 1, 2023.

Moreover, Farmers full-time retirees due to incapacity and/or their age will now be eligible for the differential guarantee. Approximately 45,000 farmers will thus be upgraded. Payments will be operational in 2024, with retroactive effect from September 1, 2023.

Solidarity allowance for the elderly (ASPA)

These decrees raise the threshold for recovery on inheritance from €39,000 to €100,000 for mainland France, as well as its indexation to inflation (the threshold having been raised from €100,000 to €150,000 in overseas territories). These draft decrees also modify the length of residence in the territory required for the benefit of ASPA, now set at nine months per year.

Orphan’s pension under the general scheme

These decrees set the conditions for access to the orphan’s pension, created by article 18 of the LFRSS for 2023, in order to fight once morest the precariousness of people under 21 who have lost both parents. It may be received up to the age of 25 subject to resources, in particular for students and without age limit for orphans suffering from a disability greater than 80% before their 21st birthday. The resource ceiling applicable in 2023 is €12,570.55.

Creation of old-age insurance for carers (AVA)

In order to strengthen the pension rights of carersthese decrees make it possible to open up the rights to old-age insurance to new carers: on the one hand, the parents of disabled children whose disability rate is less than 80% but who are eligible for the supplement allowance for the education of disabled children (AEEH), which in particular allows parents of children who are beneficiaries of the PCH to be entitled to pension rights under the general scheme, and on the other hand carers of adults disabled persons who are not cohabiting or who do not have a family link, but only a stable and close link with the person being cared for.

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