2024-08-30 17:55:10
By October at the latest, the “small pensions” of one million retirees will be increased to at least 85% of the net minimum wage of an employee who has completed his entire career at the minimum wage.
About one million retirees who are still waiting for a revaluation of their “small pensions” since the pension reform will see a pension increase “at the latest” in October to “catch up” with the levels of the past 12 months, the Insurance Agency said on Friday.
The controversial pension reform reassessed the “minimum contribution” (Mico), a small pension support system, bringing the minimum pension to 85% of the net minimum wage for employees who have completed their entire working life on the minimum wage. The government introduced this measure to strengthen the social dimension of the reform, which raised the statutory retirement age to 64 from the previous 62.
The National Pension Insurance Fund (Cnav) recalled that the pensions of about 600,000 general scheme retirees and 85,000 former agricultural employees have already increased in the first wave of increases when the reform comes into effect in the autumn of 2023. And the Agricultural Social Mutual (MSA).
But “about a million” other retirees and 250,000 former agricultural employees in the system will have to wait another year, with their files often more complicated to recalculate, requiring some to go back through their careers and find certain documents.
Monthly amount between 50 and 60 EUR
All of them will be revalued “at the latest” during the payment period of early October, with a “catch-up” corresponding to the growth of the last twelve months. Cnav said that under the general regime this would mean “an average gross monthly income of between 50 and 60 euros”, with the agency to specify the exact figures and amounts next week.
The revaluation of the small pension was the subject of intense debate during the reform about its scope and amount, with the administration accused of exaggerating the positive impact of the measure. According to estimates by Drees, the social ministry’s statistical service, the subsidy will also benefit 185,000 new retirees (out of a total of around 750,000) by 2024, with an average monthly increase of around €30.
For Dries, the “small pension revaluation” effect of the pension reform will last for years and decades to come, as the “Mico” is now linked to the minimum wage rather than inflation. Cnav stipulates that, including the increase, the relevant pension (including the basic pension and the supplementary pension allocated by one or more schemes) must not exceed 1,352.23 euros per month.
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