It’s official, the pension reform is enacted. After months of mobilization and social protest, the French will now retire at 64. This central measure of the project will have consequences for the daily lives of all retirees and changes for employees in both the public and private sectors.
At the same time, on the side of Agirc-Arrco, which manages the supplementary pension scheme for private sector employees, surpluses are recorded. In 2022, the organization recorded a surplus of 5.1 billion euros after 2.6 billion euros in 2021 and a deficit of 4 billion euros in 2020, specifies BFMTV.
This scheme is therefore in much better health than a few years ago and the existence of the bonus-malus system is thus called into question. Set up when Agirc-Arrco threatened to go bankrupt, this system aims to encourage private sector employees to work longer.
“If you were born on or after January 1, 1957 and you liquidate your basic pension at the full rate as soon as you meet the conditions for granting it, a reduction of 10% will be applied temporarily to the amount of your supplementary pension rights. for 3 years and at the latest until the age of 67”, explains Agirc-Arrco.
Conversely, bonuses may be applied for employees agreeing to delay the liquidation of their supplementary pension. “If you postpone the liquidation of your Agirc-Arrco supplementary pension by at least 4 quarters in relation to the date on which you meet the conditions for the full rate in the basic scheme, these reductions of 10% or 5% will not be applied to your supplementary pension. In addition, you will be able to benefit, for one year, from an increase in your supplementary pension “of up to 30%, by shifting further, specifies the scheme.
Is the bonus-malus system a success?
According to data from the Ministry of Solidarity, in 2020, for the second year of existence of the bonus-malus system, success had not necessarily been there. Indeed, only a very small proportion of private sector employees had decided to retire two years later to obtain increases, report Les Echos.
It is therefore not this measure that hides behind the good health of the system but more the reduction of unemployment and the creation of jobs. The subject of the bonus-malus should therefore soon be “put back on the table”.
Given the good health of the regime, this system may no longer be necessary today. In addition, with the decline in the legal retirement age, it is no longer necessarily appropriate. This is why this subject will be “put back on the table” during the next negotiations between unions and employers on the management objectives of the scheme from 2023 to 2026.
Maintaining the device should then be discussed. “It is a negotiation which should be closed at the end of June, according to the indications which we received from our principals”, had declared Brigitte Pisa, administrator of the mode, with BFMTV.