Retirement: what awaits you in 2019, whether you are retired or active (Photo credit: Fotolia)
Merger of private pension plans for private employees (Arrco / Agirc), revaluation of pensions, bonuses / penalties, simplification of retirement savings, pension system reform … Whether you are active or retired, what are the changes? for your retirement in 2019?
Fusion of Agirc and Arrco
Decided in 2015, the merger of the supplementary retirement plans for employees in the private sector, Agirc (executive employees only) and Arrco (management and non-executive employees), is implemented on January 1, 2019.
A unique point system
As of January 2019, the pension points earned each year will have the same value regardless of the status (executive or non-executive). The rules will be aligned with those of the Arrco. The points already acquired by the executives will be transformed into Arrco points, without any loss of rights.
The survivor's pension is the portion of the deceased's retirement pension paid to the surviving spouse. From 2019, the survivor pension will be paid from age 55 for all employees regardless of their status, whereas it was paid from the age of 60 to the Agirc (cadres).
The increase of pensions
Parents of three or more children will be entitled to a pension increase equal to 10% of the amount of the pension. This will be capped at € 2,000.
Retirement: a bonus / malus system
For generations born from 1957, a bonus / malus system is put in place to encourage employees to work one more year once they have met the two conditions necessary for a full pension (legal age and contribution period) .
An employee with all his annuities and who will retire at 62 years old (legal age) will be applied on his pension a penalty of 10% per year for three years. He will receive a full pension from age 65.
If he works until age 63, no reduction will be imposed.
If he shifts his two-year retirement, he will receive a bonus of 10%, bonus that rises to 20% if he works three years more, and 30% for four years more. Unlike the penalty, this bonus will only be granted for one year.
Pension contributions of private employees increase
The call rate is now 125%: the pension plan draws 25% more than the pension contribution actually paid by the employee. This 25% "over-contribution" does not open him any pension right. They are intended to redress the accounts of the scheme. This rate increases to 127% in January.
With the merger, executives and non-executives now contribute in the same way: the contribution levels depend only on the salary, whatever the status.
Until the end of 2018, executives earning less than 3,600 euros a month paid a flat-rate contribution that allowed them to benefit from an Agirc pension. This guarantee disappears, but the rights already acquired by these executives will be financed by a new contribution of 0.35% paid by all employees earning more than 3,300 euros per month.
According to Agirc-Arrco, in the end, a non-executive earning € 2,200 monthly will contribute € 2 more per month (+6 euros for his employer) and a paid executive 4,700 euros will contribute 19 euros more (+31 euros for his employer).
Revalorization of retirement pensions
The Social Security Financing Bill (PLFSS) for 2019 provides for a revaluation of pensions at 1 January 2019 of 0.3%.
Cancellation of the increase of the CSG for some pensioners
Following the movement of "yellow vests", Emmanuel Macron had announced that retirees who receive less than € 2,000 of income per month (€ 3,000 for a couple) will be exempted from rising the CSG.
The National Assembly has buried the measure: pensioners whose reference tax income is less than 22 580 euros for a single person or 34 636 euros for a couple will be exempted from a rise in the CSG.
The measure will be applied in July 2019 with retroactive effect to January 2019. Retirees concerned will be reimbursed in July from the CSG collected between January and July 2019 and will be exempt from the 1.7 point increase in CSG from July 2019.
Simplification of retirement savings
The Pact Act (Action Plan for Business Growth and Transformation) plans to simplify existing retirement savings schemes.
The transferability of savings from one product to another (PERP, Madelin, Article 83, PERCO) will be facilitated.
The taxation of the various schemes will be harmonized, in particular to generalize to all products the possibility of deducting from the income tax base the voluntary payments of savers.
The exit conditions at the time of retirement will be relaxed to offer investors the choice to exit in annuity or capital.
It will also be possible to buy back or liquidate rights in the course of acquisition for the purchase of his first principal residence.
Voted in first reading in the National Assembly, the Pact Act should be finally adopted in the spring.
Jean-Paul Delevoye, High Commissioner for Pension Reform, plans to make his recommendations to the government in the spring.
The pension reform must result in a universal pension scheme in which "one euro contributed gives the same rights, regardless of when it was paid, regardless of the status of the contributor."
Thus, one euro contributed would give the same rights, whether the contributor is an employee, an official or an independent. On the other hand, contribution rates may vary. For example, a self-employed person may decide to contribute less than an employee (and thus receive a lower pension).
The statutory retirement age (62 years) and the number of years of pensionable life would not be changed. On the other hand, everyone would be free to retire before age 62, without having paid enough contributions but with a heavy discount, or to work after 62 years to build a higher pension.