Pensions in France: unions want to take advantage of Agirc-Arrco's billions in surplus

2023-09-05T14:23:02.029Z

Highlights: Negotiations between unions and employers for the Agirc-Arrco regime begin on Tuesday 5 September. This scheme pays more than €87 billion in pensions to 13 million pensioners every year. The unions want this windfall to benefit workers and pensioners through revaluations that compensate for inflation. Another avenue envisaged is the abolition of the bonus-malus system, created in 2019, which encourages policyholders to stay in business longer. For Force Ouvrière (FO), it is up to the government to finance this measure on small pensions.

It is this Tuesday, September 5 that negotiations begin between the unions and the employers to define the new rules of the supplementary pension scheme for private employees, Agirc-Arrco....

Pensions in France: unions want to take advantage of Agirc-Arrco's billions in surplus

It is this Tuesday, September 5 that negotiations begin between the unions and the employers to define the new rules of the supplementary pension scheme for private employees, Agirc-Arrco. They will apply from 1 November for the next four years. These negotiations start in a context where Agirc-Arrco's accounts are flourishing.

Negotiations between unions and employers for the Agirc-Arrco regime begin on Tuesday 5 September. © EMMANUEL DUNAND / AFP

By: RFI Follow

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With the start of negotiations to define the new rules of the supplementary pension scheme for private sector employees – Agirc-Arrco – the unions hope to achieve good progress for retirees. Indeed, the regime has full coffers. In 2022, it generated more than €5 billion in profits. And its reserves currently stand at 68 billion. Boxes full that will remain so permanently, thanks to the postponement of the legal retirement age, from 62 to 64 years.

The unions want this windfall to benefit workers and pensioners through revaluations that compensate for inflation. Another avenue envisaged is the abolition of the bonus-malus system, created in 2019, which encourages policyholders to stay in business longer.

Participation in the increase of small pensions?

Finally, Agirc-Arrco could be required to participate in the financing of the increase in small pensions, provided for by the pension reform. This is the wish of the executive, but not of the unions. For Force Ouvrière (FO), it is up to the government to finance this measure on small pensions. On the side of the CFDT and the CFTC, it is considered that the subject is not on the agenda. This scheme pays more than €87 billion in pensions to 13 million pensioners every year.

Pensions in France: unions want to take advantage of Agirc-Arrco's billions in surplus

Pensions in France: unions want to take advantage of Agirc-Arrco's billions in surplus

Participation in the increase of small pensions?

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