The Agirc-Arrco pension fund has announced that there will be no increase in supplemental benefits for private sector retirees this November. This decision, to remain unchanged, stems from the lack of agreement between employer and union representatives regarding pension adjustments.
Background on Agirc-Arrco Pension Fund
The Agirc-Arrco scheme is crucial for approximately 14 million retirees in the private sector. Each year, the governing bodies must decide on the rate of pension increases based on economic factors, including inflation forecasts and the fund’s financial reserves. A lack of consensus this year means pensions will not be revalued.
No Increase for Supplemental Benefits
On October 17, the Agirc-Arrco confirmed that there would be no adjustments to pensions or the purchase value of pension points at the beginning of 2026. This news follows a tense meeting where the potential suspension of pension reforms was discussed.
- Current Reserves: The Agirc-Arrco currently holds reserves totaling over €85 billion.
- Inflation Rate: The inflation rate projected for 2025 is around 1%, leading to options for a pension increase between 0.2% and 1%.
- Last Year’s Increase: In November 2024, pensions were increased by 1.6%.
Challenges in Negotiations
Negotiations this year proved challenging. While the unions aimed for a rate closer to the maximum possible increase of 1%, employer representatives pushed for a minimal increase of only 0.2%. This position stemmed from concerns over economic instability.
Union Reactions
Unions, particularly the CFDT, criticized the employer’s stance, labeling the 0.2% proposal as unjustifiable. They argue that a 0.6% increase would have been financially sustainable and necessary given the projected financial outlook.
They expressed disappointment, stating that the refusal to negotiate further demonstrates a lack of commitment from the employers regarding the management of retirement benefits.
Future Implications
With the financial stability of Agirc-Arrco at stake, the decisions made this year could have significant consequences. The inability to agree on pension increases reflects broader challenges in the private retirement sector, potentially impacting retirees’ financial well-being moving forward.
