Unions and employers agree on a 4.9% increase in private sector pensions

2023-10-05 02:54:10

Former private sector employees should receive a little more money from next month. Supplementary pensions will be increased by 4.9% from November 1, in line with inflation, announced the trade union and employer organizations managing the Agirc-Arrco scheme, which have yet to sign the agreement reached on Wednesday night. on Thursday.

The “malus”, a temporary reduction of 10% which has applied since 2019 to the pensions of many retirees who have left having met all the legal conditions, will also be eliminated from December 1 for new retirees, then from April for all retirees concerned. Without definitively promising to sign, several organizations including the CFDT and the Medef judged the agreement “balanced”. The deadline to sign the agreement was set for Wednesday.

An increase for the moment below inflation between 2024 and 2026

Between 2024 and 2026, the revaluation of pensions might, however, be less: depending on the economic situation, the increase might be under-indexed by a maximum of 0.4 points below inflation. But the board of directors of the joint body may choose to bring it back to the level of inflation.

Agirc-Arrco pays nearly 90 billion euros each year to 13 million retirees. This additional part represents between 20% of the total pension for precarious employees and 60% for certain executives.

Drawing from the coffers of Agirc-Arrco, an idea that does not pass

In addition to this draft agreement, unions and employers have also shown a common front in the face of the executive’s desire to drain Agirc-Arrco’s reserves, a “misappropriation of funds” according to FO.

The executive is demanding one to three billion annually from Agirc-Arrco by 2030, which it first presented as participation in the increase in the contributory minimum (small pensions) provided for by its pension reform, to finally mention a duty of “solidarity” between regimes with a view to a global “return to balance”. Otherwise, he threatens to help himself to the cash registers. He argues the good financial health of the system, its 68 billion in reserves, and the new revenues brought by the pension reform (estimated by Agirc-Arrco at 22 billion over fifteen years).

An agreement without a “financial pipe to the State”

According to the unions, such a drain would jeopardize Agirc-Arrco, and its ability to increase pensions in the future. According to a source close to the matter, one billion is equivalent to 1.1% revaluation.

The social partners have chosen not to provide any “financial pipe to the State” in their agreement. But an article provides for the launch of work aimed at internal “solidarity” measures within the regime, via a working group, with a view to a new agreement by the end of the first half of 2024. The CPME regretted that this article does not directly refer to small pensions.

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