When it was created in 1945, the basic plan expected pensions to be insufficient to allow workers who had just left professional life a peaceful retirement. With a view to supporting them at the end of their career, the unions of the time fought so that supplementary pensions such as Ircantec and Agirc-Arrco could be put in place. However, differences exist between these two pension funds. Decryption.
Despite similar uses, Ircantec and Agirc-Arrco have differences. Thus, Agirc-Arrco, set up in 2019, is responsible for paying supplementary pensions to former private sector employees. They can benefit from it regardless of their seniority, regardless of their place of residence. On the Ircantec side, the supplementary pension is intended for civil service workers, who do not have civil servant status. It is aimed at nearly 3 million people in France, who work in hospitals or in public law organizations such as public administrative establishments.
In addition to the destination of each supplementary pension, the calculation method established by Ircantec and Agirc-Arrco is different. For Agirc-Arrco, the pension depends on the number of points acquired during one’s career, the duration of activity and the value of the points. On the Ircantec side, the amount of the supplementary pension is determined by the number of points, but also the rate of return and the service value of the point. The management of the two supplementary pensions is also specific since Agirc-Arrco is managed between representatives of the employers’ confederations and trade union organizations. As for Ircantec, it is used according to a distribution principle while the fund which takes care of it is the Caisse des Dépôts et Consignations.
