The supplementary retirement plan for executives and employees of the private Agirc-Arrco announced Thursday a surplus of 1.2 billion euros in 2019, thus returning to balance for the first time in ten years and with a year of ahead of its forecasts. This provisional result is the sign of a spectacular recovery, after the deficit of 1.4 billion euros recorded in 2018 by the Agirc-Arrco, which was still counting in June on "a return to balance in 2020".
The fund, managed by the unions and the employers, benefited from the good performance of employment and the increases in contributions that came into effect last year: its resources increased by 4.8% to 83.6 billion euros, she said in a statement. At the same time, its expenses increased by 1.7% to 83.1 billion euros, an increase limited in particular by savings "on operating costs" and a new bonus-malus mechanism supposed to encourage employees to delay their retirement.
More uncertainty linked to the reform
Agirc-Arrco therefore posts a “technical result” of 489 million euros, to which is added a “financial result” of “nearly 700 million”. A windfall generated by the reserves of the fund, invested for a third in equities and which have followed the dynamics of the markets: their value jumped 10% in one year, reaching 66.7 billion euros at the end of December, or 80% annual expenses. The downside, with the stock market crash linked to the coronavirus, this war treasure has melted by 3 billion since January 1, said Jean-Claude Barboul, president of the caisses.
This does not affect the short and medium term projections. "On the management of the next four years, the plan will be in surplus," he said, confirming the objective of reducing reserves to 50% of annual expenditure in 2033. Meanwhile, the desired pension reform by Emmanuel Macron must create a "universal system", but "we do not know how the coin will fall", said the president of Agirc-Arrco, observing that the choice of a "transition" to the Italian " will maintain existing regimes for several years. "
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