Complementary pensions of the private sector will increase by 1% on 1 November

After four years of freezing and a small increase in 2018, the supplementary pensions of former employees of the private sector will be increased by 1% on 1 November. The decision is in line with the inflation forecast for 2019,
announced Monday the Agirc-Arrco pension plan. In May, the union and employer organizations that manage this plan
had reached an agreement guaranteeing at least a rise in the level of inflation until 2022.

📢 The service value of the Agirc-Arrco point on November 1, 2019 will therefore be € 1.2714, which corresponds to a revaluation of 1%. Read the # CommuniquéPresse https://t.co/cKjtbNKM8I pic.twitter.com/tflC0KiPky

– Agirc-Arrco (@AgircArrco) October 8, 2019

Gathered Monday, they took note of "the latest inflation forecast published in June by INSEE, excluding tobacco, (…) estimated at 1% for the year 2019," said in its statement the regime born of the January merger of complementary pension funds Agirc (executives) and Arrco (all employees of the private sector).

12.6 million pensioners concerned

The supplementary pensions of 12.6 million retirees will therefore be revalued, which corresponds to 800 million euros of allowances paid in addition. This decision is part of a "return to financial equilibrium" regime "in the year 2019," says Agirc-Arrco. The government still plans to replace the existing 42 pension plans with a "universal system".

It is the end of several years of diet, the previous agreements providing for revaluations of one point below inflation. The May agreement also provided the possibility of a boost of 0.2% additional to inflation in case of a favorable situation of the regime, an option that was not retained Monday.

In January, basic pensions were only revised up by 0.3%, well below inflation. In its draft Social Security budget for 2020, the government plans to reindex on inflation pensions less than 2,000 euros, in accordance with a promise by Emmanuel Macron in response to the crisis of "yellow vests" and growls retirements. Pensions of more than 2,000 euros will increase by only 0.3%.