Supplementary pensions represent 60% of the income of retired executives -

Philippe Huguen

  • Eight days after the recommendations of his office, the board of directors of Agirc-Arrco voted, this Thursday, October 8, to freeze supplementary retirement pensions.

  • While the 2019 agreements ensured the indexation of supplementary pensions to inflation, the economic crisis linked to the coronavirus is a game-changer.

The office of Agirc-Arrco recommended it since September 30, the board of directors approves it.

Meeting in assembly this Thursday, October 8, the body which manages the supplementary retirement pensions of private sector employees has decided to freeze them for a year.

Consequence: retirees will not see their pensions increase on November 1.

"The effort must be shared by all"

However, according to the agreements signed in May 2019 by the social partners, supplementary pensions, which represent 60% of the managers' pensions, should be indexed to inflation, in order to preserve the purchasing power of retirees over the period of 2020 to 2023. But this year, with the coronavirus, containment and the resulting economic crisis, inflation has risen more than the benchmark salary which, in part because of short-time working, has fallen by 7%.

In a press release, Agirc-Arrco recalls that if the evolution of prices is greater than that of wages, it is the latter which serve as a reference, but that in no case pensions can be reduced.

Limited impact

For Eric Chevée, vice-president of the Confederation of small and medium-sized enterprises (CPME) in charge of social affairs, this freeze is "not even a subject".

He argues that the revaluation of the value of the service point would have been only 0.1%: “We know that the poorest 10% are in a precarious situation, but the others are not badly off and are not shouldn't feel it.

He added that the amount of the freeze corresponds exactly to the surplus that had been granted in 2019. This decision would then not be a loss, but a balance.

The social partners in favor of this freeze recall that the balance of supplementary pensions, which was in balance in 2019, should end the year in the red, with a deficit estimated at 6.5 billion euros.

“Maybe a little less, tempers Eric Chevée.

We expected 10 billion losses after confinement, 8 billion this summer.

If we avoid a second wave, it could decrease further by the end of the year.

"

No alert, however, since Agirc-Arrco has reserves.

If they tend to decrease with regard to the charges to be covered, they are sufficient, according to Eric Chevée: “There is no danger on the future of the supplementary pensions of Agirc-Arrco.

They are made to counter economic accidents like the one we are experiencing.

But, from now on, we must think about reconstituting them.

"

A measure that calls for others

If there is therefore no danger for other members of the organization, there was no urgent need to take this measure either.

Pierre Pluquin, administrator of the CGT at Agirc-Arrco, was opposed to it: “We have 60 billion in reserves and therefore a few years ahead of us before having to cry out.

According to him, the retirees did not have to be collateral victims of the situation.

Once the freeze has been approved, the social partners will now have to look at solutions to ensure the reserves of Agirc-Arrco.

Because the latest projections no longer make it possible to meet the conditions for a minimum of six months of reserve allocations until 2033, but rather until 2026. To remedy this, Agirc-Arrco announces the referral by the partners of the Board of Directors.

If the CPME wants to tackle the problem of the retirement age again, the CGT would prefer to increase the sustainability coefficient.

The different parties are however in agreement to wait until the beginning of the year 2021 and the evolution of the health and economic situation to look into the problem, as advised by the office of Agirc-Arrco.

The fixing of the value of the point of purchase, which usually takes effect on January 1, is thus postponed.

Health

Social security: “unprecedented” deficit in 2020, still “very high” in 2021

Economy

Pensions: Agirc-Arrco announces a surplus in 2020, a first for nine years

  • Economy

  • CGT

  • SME

  • Coronavirus

  • Covid 19

  • Allowances

  • Confinement

  • Retirement