Compliance of pension plans for senior
In 2023, the French government launched discussions on a new pension reform. Among the main measures announced is an increase in the retirement age from 62 to 64. It’s a choice that has angered the majority of French people, unions and the opposition parties alike.
The plan presented by the Head of Government, Elisabeth Borne, aims to raise the retirement age from 62 to 64 by the end of the decade. In an interview, French Budget Minister Gabriel Attal argued that the reform did not stop at changing the retirement age. It was also necessary to increase the minimum pension.
No more special pension schemes ?
This new reform announces the end of the main special regimes. In fact, from September 1, 2023, the government plans to apply this measure progressively. This applies to new recruits, who are now affiliated to the general pension scheme. Supplementary pensions will be calculated on a points system. Retirement insurance will be responsible for paying this pension. Insured persons will then receive their basic pension at the full rate, commonly known as the maximum rate. For information, the supplementary pension is reduced for a basic pension at a lower rate. It all depends on the abatement coefficients. These are specific to the supplementary regime.
Pension reform doesn’t stop at changing the retirement age.
Gabriel Attal
An upgraded pension
Around 15 million pensioners receive a monthly pension from the basic general scheme, known as “CNAV” or “Caisse Nationale d’Assurance Vieillesse”. You can now look forward to a small extra boost. The first payment was made on January 9, 2023, so those who haven’t yet had their payment should wait. Cnav is quick to point out that pensions are paid monthly at the end of the period for which they are due. This means that the pension due for January 2023 was paid from February 9, 2023.
Raise social security contributions?
It should be remembered that any retirement pension may be subject to three categories of contributions, namely CSG, CRDS and CASA.
In the case of CSG, the rate is 3.80%, 6.60% or 8.30%, depending on the amount of reference tax income or exemption. CASA is levied at a rate of 0.30%. Note that this will only be paid if you are subject to the CSG rates of 6.60% or 8.30%. To check the status of your pension, we advise you to go directly to the official website (Simulateur réforme (la-reforme-des-retraites-et-moi.fr)), where you can log on to your personal space in just a few clicks. You’ll then need to access your career statement to determine the number of quarters already acquired. You’ll then get an initial estimate of the amount of your pension. Don’t forget to check the different possible retirement ages and their impact on the amount of your future pension. It’s a good idea to use simulators, which will give you a precise amount regardless of your pension scheme.
Other pension-related measures?
It should be pointed out that, at present, combining work and retirement does not give rise to new rights, despite the contributions made. Under the new system, additional pension rights will be created. As a result, any pensioner who retires at the full rate and chooses to return to work after retirement will be able to open up new rights and improve his or her retirement pension. However, the way in which pensions are calculated for civil servants will be spared any changes, with the last six months taken into account for bonuses. The same applies to the specific provisions for early retirement.
