End of the Agirc-Arrco bonus, implementation of a parental premium from age 63. Several measures will modify the pension of future retirees compared to that of current retirees. To find out what impact they will have on your pension, Capital, with mareformedesretraites.fr, a site specializing in retirement advice, presents three simulations of female employees based on their income level.
In order to have all the keys to understanding, let us first recall that the Agirc-Arrco bonus made it possible toincrease your supplementary pension if you decide to work after your legal retirement age. For two additional years, your bonus was 10% for one year, it rose to 20% for three years over the legal age and 30% for four years or more. The parental premium is a system put in place by the latest pension reform. It concerns assets who have acquired at least one quarter of retirement for the birth or education of a child. If they have their full rate (the number of quarters required to not suffer a reduction) from the age of 63, they can benefit froma premium of maximum 5% (1.25% per additional quarter, up to four).
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To help you understand these changes, here is the example of three women (these are mainly women who will benefit from the parental premium), all born in March 1968. This is the first generation whose legal retirement age reaches 64. They all stopped working for three years to raise their two children. In each case, they have their full rate at age 62 and have decided to work until age 64. These practical cases make it possible to assess the loss due to the end of the Agirc-Arrco bonus and to determine whether the parental premium will make up for it.
For an employee paid the minimum wage all her life
Before the reform, this employee, by leaving at 64 while she has the full rate from 62, could receive a basic pension of 839 euros per month. She also benefited from the Agirc-Arrco bonus of 27 euros per month for one year. In total, by continuing to work until age 64, his pension then amounted to 1,141 euros for one year (with the Agirc-Arrco bonus), then it went down to 1,114 euros.
After the reform, our employee will earn 65 euros less per month in her first year of retirement, a reduction which will then be limited to 38 euros for the rest of his retirement. What especially penalizes our future retiree is the loss of part of the premium for the basic pension. Before the reform, by working eight additional quarters, she benefited from an additional 10% (1.25% per additional quarter worked) of her basic pension, which increased it by 77 euros per month. With the reform, our employee no longer has a bonus on her basic pension because it only kicks in when the legal age is reached, i.e. at 64.
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However, she can benefit from the new system put in place by the reform and called parental surcharge. It allows parents who have a full pension at the legal age to benefit from a bonus. It is 1.25% per additional quarter worked between ages 63 and 64. It cannot therefore exceed 5% (4 x 1.25%). If we take our employee back, after the reform, she will no longer benefit from the 10% bonus to her basic pension before the legal age but from a 5% bonus. His pension will be increased by 39 euros, compared to 77 euros before the reform, which explains the difference of 38 euros. As we can see, the bonus system specific to parents does not make up for the entirety of the loss suffered on the premium open to all former private sector employees.
For an employee earning 2,500 euros over her entire career
As with our previous example, our employee will receive a lower pension after the reform, although she leaves at the same age. In fact, before the reform, his basic pension was 1,250 euros, thanks in particular to a 10% premium. After the reform, our employee benefits from an increase in her lower basic pension, due to the parental bonus. It will be 5% (i.e. a premium of 57 euros) instead of 10% (i.e. a premium of 114 euros), which explains this difference of 57 euros per month on the basic pension before and after the reform.
This change weighs more on our employee’s finances than the removal of the Agirc-Arrco bonus. The loss will be 45 euros per month for one year, or 540 euros. Whereas with the increase in the legal age, our employee’s shortfall will amount to 57 euros per month throughout her career.
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For an employee earning 4,500 euros over her entire career
Before the reform, by working two years over her full age, our employee received a pension of 3,062 euros net per month. She benefited from a bonus of 114 euros at Agirc-Arrco, or a total gain over the year of 1,368 euros. As for her basic pension, she received a basic pension of 1,800 euros. By working two years over his legal age, his premium was 164 euros per month.
After the reform, in addition to no longer receiving the Agirc-Arrco bonus, our employee will see her premium on the basic pension drop. It will no longer be 10% but 5% as part of the parental bonus put in place by the pension reform at age 63. Result, she will no longer receive 164 euros per month of premium but 82 euros, i.e. a loss of 82 euros.
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