Revaluation of pensions: this detail which could disadvantage some retirees


This news should delight retirees. As Emmanuel Macron assured during his election campaign, basic retirement pensions should be increased during the summer. They will indeed be indexed to inflation again, from July 1, after a 1.1% increase on January 1, 2022. This was announced by the Minister of Labour, Olivier Dussopt, this Tuesday, May 24 in the morning, at the microphone of RTL. “We would like this inflation indexation to be valid for July pensions. Under the general scheme, the July pension is paid on August 9,” he said. “It is our goal that the indexation comes into effect on that date.”

And to clarify: “If we take into account inflation at 4%, for a pension of 1,200 euros, it is a gain of 45 euros per month”. If the precise figure is not yet known, note that the reindexing of retirement pensions on inflation will be established only on retirement pensions from the general scheme. It will be included in the bill in favor of purchasing power “which should be adopted by the Council of Ministers before the legislative elections, so that it can be presented to the national representation as soon as it is elected”, declared of his side the new government spokesperson, Olivia GrĂ©goire at the exit of the Council of Ministers, this Monday, May 23.

The trade unions are already at the front. During a press conference held this Monday, May 23, 9 organizations of retirees (CGT, FO, CFTC, CFE-CGC, FSU, Solidaires, FGR-FP, LSR and Ensemble) asked that the revaluation basic pensions, i.e. 4.5%. They also want it to be retroactive, since January 1, 2022. Because, as the collective warned, “more and more retirees are falling into poverty and precariousness”.

The latter also warns against the “scissor effect”.

According to the collective, this exceptional revaluation must be accompanied by an increase in the reference tax income thresholds (RFR), used to set the rate of Generalized Social Contribution (CSG) for retirees. “If it is not raised to the same level, what retirees will gain in increased pensions, some will lose it because they will exceed the RFR thresholds and see their rate increase”, deciphers Roger Perret of Ensemble and Solidaires.

“This is called the scissor effect”, notes Didier Hotte of the Confederal Union of FO retirees. “The increase in pensions can be eaten up by a rise in the CSG rate. We have already seen this effect during the 1.1% revaluation in January when the RFR threshold had only been raised by 0.2% .” That’s why, Capital reports, they’re calling for the benchmark tax income threshold to be raised as well. Thus, a strong revaluation will not result in losers.