The French social security system
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In France, private-sector employees' basic pensions are topped up by the compulsory supplementary pension scheme Agirc-Arrco, which is also financed on a pay-as-you go basis.

A - Basic scheme

Basic pensions under the general scheme are awarded by:

The (regional) retirement and occupational health funds (caisses d'assurance retraite et de santé au travail/ CARSAT),

the Île-de-France national old-age insurance fund (caisse nationale d'assurance vieillesse d'Île-de-France) for the Paris region,

the general social security funds (caisses générales de sécurité sociale/ CGSS) for the overseas Departments,

the CSS in Mayotte.

1 - Eligibility requirements

a) Retirement ages

Retiring between 62 and 64 (statutory age)

France's statutory retirement age varies according to your date of birth. It is 62 for those born between 1955 and August 31st, 1961. It is then raised by 3 months per generation:

Statutory retirement age Date of birth Retirement age From 01/09/1961 to 31/12/1961 62 years and 3 months 1962 62 years and 6 months 1963 62 years and 9 months 1964 63 years 1965 63 years and 3 months 1966 63 years and 6 months 1967 63 years and 9 months 1968 or thereafter 64 years

However, in order to qualify for a full - pension from the statutory retirement age, you must have accrued a required number of quarters of contributions, which varies according to your year of birth. If you don't have the full period of insurance, your pension will be permanently reduced (discounted).

Retiring at 67 (age of automatic full-rate entitlement)

Once a claimant has reached 67, their pension will be calculated at the full rate (50%) regardless of how many quarters they have accrued.

b) How pensions are calculated (careers with only general scheme membership)

The amount of the pension is determined by three factors:

Average Yearly Income (RAM): average yearly income is the gross earnings on which contributions have been paid. RAM is calculated on the basis of the member's 25 best-earning years.

Payment rate: the maximum rate of 50% is reduced by a percentage determined by the difference between the number of quarters credited and the number of quarters required to receive the maximum rate, with consideration for individual's age and total period of insurance. The most advantageous calculation for the individual is used. The minimum rate is 37.5%.

The total length of insurance, including periods credited as periods of insurance, is used to determine the payment rate of pensions paid between the legal minimum retirement age and the age of automatic entitlement to a full pension. The 50% full rate is payable to individuals having a total insurance period of 166 to 172 quarters (depending on year of birth), aged over 67 (for persons born after 1955) or belonging to specific categories (persons unfit for work, those with a permanent disability severity rating of at least 50%, disability-pension claimants, mothers with blue-collar employment, or combat veterans).

The total period of insurance, which is used to determine the rate at which the pension will be paid, includes both periods of contributions paid to the various basic schemes (see Article L. 351-1 of the French Social Security Code) and periods treated as such, i.e. periods of cessation of work in the case of sickness, maternity, disability, industrial injury, military service, unemployment, etc.

Retirement ages abroad: in Europe and outside of Europe

A member's total insurance period is the actual length of insurance (contribution periods and periods treated as such) under the insurance scheme. With the different reforms, the period of insurance required for a full-rate pension has increased progressively:

Full rate - Insurance duration required Date of birth Number of quarters required 1958, 1959, 1960 167 quarters 01/01/1961 – 31/08/1961 168 quarters 01/09/1961 – 31/12/1962 169 quarters 1963 170 quarters 1964 171 quarters 1965 or thereafter 172 quarters

Early retirement pension

Under certain circumstances, workers can retire before statutory age without a reduction in their pension rate. This applies to pensions claimed on the following grounds:

Retirement on the basis of permanent incapacity or arduous work: Workers retiring due to permanent incapacity for work attributable to an occupational illness or accident at work can claim a full-rate pension at age 60, regardless of their length of insurance. There are several possible scenarios as determined by the worker's degree of incapacity:

Occupational disease: permanent incapacity-for-work rating of at least 20%

Workplace accident: permanent incapacity-for-work rating of at least 20% and injuries identical to those compensated under an occupational disease,

If the permanent incapacity-for-work rating is less than 20% but at least 10%,you must have been exposed to work-related risk factors for at least 17 years. The permanent incapacity for work must be directly linked to the exposure to those work-related risk factors. The length of exposure can have been accrued under any basic scheme in France or another European Union member State. Members exposed to work-related risk factors accrue points to their job risk prevention account (compte professionnel de prévention),

People with a long career may retire between 58 and 63 if they have accrued a minimum length of insurance and contributions and began working at a very young age (between 16 and 21). The required minimum length of insurance varies depending on birth year, age at retirement, and age at which the retiree began working.

People with a disability may retire between ages 55 and 59 provided that they have a permanent disability percentage of at least 50% or have official disabled-worker status before December 31, 2015. They must also have a certain length of contributions during the period in which they were disabled (variable depending on birth year and expected age at retirement).

Reduced-rate pension (rate reduction)

People who wish to draw their pension but do not have the qualifying period of insurance for a full-rate pension (50%) will receive their pension at a reduced rate. The percentage reduction is determined by the number of missing quarters and the claimant's year of birth: 1.25% for those born from 1953 (i.e. a decrease of 0.625 for each missing quarter applied at the full rate of 50%). The pension will continue to be paid at the reduced rate from then on.

Missing

quarters Pension

rate 1 49.375 % 2 48.750 % 3 48.125 % 4 47.500 % 5 46.875 % 6 46.250 % 7 45.625 % 8 45.000 % 9 44.375 % 10 43.750 % 11 43.125 % 12 42.500 % 13 41.875 % 14 41.250 % 15 40.625 % 16 40.000 % 17 39.375 % 18 38,750 % 19 38,125 % 20+ 37,500 %

Increased pension rate (for those continuing to work beyond the statutory retirement age)

Individuals who have accrued the required length of insurance for a full-rate pension at statutory age and who continue working qualify for a pension increase. Applicable rates differ as determined by when these periods of employment were accrued. For quarters completed after 1st January 2009, the rate of increase is 1.25% for each additional quarter.

c) Increases in length of insurance

Child-related increase

A parent can be awarded a length of insurance increase of up to 8 quarters per child:

4 quarters for maternity leave (90 days of daily benefits accrue a quarter) or adoption,

4 quarters of child-rearing over the 4 years that follow the child's birth or adoption.

For children born after January 1st, 2010, additional quarters for adoption can be shared between the parents. Regarding the quarters for child-rearing, 2 of the 4 “child-rearing” quarters acquired for each child are automatically awarded to the mother. The other 2 can be awarded to the mother or to the father. The beneficiary of the additional quarters or sharing of the quarters between the parents must be notified within a 6-month period following the 4th anniversary of the child's birth or adoption via the declaration form.

The child disability top-up

Up to eight additional quarters may be credited to persons bringing up a child who has a permanent disability with a severity rating of 80% and qualifies for the special education disabled child's allowance (AEEH) or the disability compensation benefit (PCH).

Delaying retirement

An individual who reaches full-rate retirement pension age (67) but has not accrued the required length of insurance (depending on year of birth) for entitlement to a full pension (all basic schemes combined) may continue to practise a professional activity in order to increase their length of insurance by delaying their retirement. In this case, their length of insurance will be increased by 2.5% for each trimester retirement is delayed.

d) Pension increase

Pensions may be increased for the following reasons:

The child-rearing increase: Individuals who have raised 3 children for at least 9 years before their 16th birthday are entitled to a 10% pension increase. The increase is awarded to each parent receiving a retirement pension.

The dependent-spouse increase is no longer awarded as of 1st January 2011. It will continue to be paid at a rate of €609.80 / year to persons who were entitled to it prior to that date and continue to meet the eligibility requirements.

The caregiver's increase is awarded to pensioners whose retirement pension replaces a disability pension and to pensioners whose pension is paid or revised for inability to work and who meet the requirements for the increase before reaching the age where they are entitled to a full pension (67). To be entitled to such an increase, the pensioner must be in need of the constant attendance allowance for help with activities of daily living. As from April 1st, 2023, the amount of this increase amounts to €1,210.90 per month.

The pension-rate increase: Members who work beyond the age of automatic full-rate pension entitlement and whose aggregated length of old-age pension insurance under all basic pension schemes combined entitles them to a full-rate pension can continue working in order to increase the amount of their pension. For each quarter accrued beyond statutory pension age and after accruing the required length of insurance for full-rate pension entitlement, the member's pension will be increased by 1.25% per quarter (with a cap of 4 quarters per year).

The parental increase: Increase in the basic pension of 1.25% per additional quarter worked for claimants born from 1964, within the limit of 5%. This supplement concerns people who have sufficient quarters to claim their pension at full rate and benefit from at least one quarter of child-rearing increase.

e) Minimum and maximum pension rates

The Elderly Solidarity Allowance (Allocation de solidarité aux personnes âgées/ ASPA) is a monthly benefit that is awarded to low-income retirees residing in France1. This means-tested benefit is calculated to bring claimants' income up to a level which is determined by family circumstances. Effective 1st January 2024, It amounts to €1,012.02 per month for a person living alone.

The Minimum pension (minimum contributif) is granted to members:

who are entitled to a full-rate basic pension under the general scheme,

and have claimed all of their basic and supplementary retirement pension entitlements,

the total amount of which (basic plus supplementary, public and private sector combined), does not exceed €1,367.51* per month (applicable from 1st January 2024).

It comes to €733.03 per month, and can be paid along with supplements earned due to length of insurance or other factors. Whatever the circumstances, the minimum pension cannot bring the total amount of personal pensions (basic and supplementary) above a certain set monthly amount (€1,367.51 from 1st January 2024).

The basic retirement pension cannot exceed 50% of the social security ceiling (€1,932 per month in 2024).

f) Multiple-pension claimants: the single pension claim for aligned scheme members (liquidation unique des régimes alignés/ Lura)

The pension reform of January 20, 2014, instituted the single pension claim system (Lura) for individuals who have belonged to at least 2 of the following so-called “aligned” schemes:

The general salaried workers' scheme (Régime général des salariés)

The agricultural employees' scheme (Régime des salariés agricoles),

The former self-employed workers' scheme (craftsmen, merchants, manufacturers).

The single pension claim system does not apply to workers who have belonged to the former self-employed workers' scheme (régime social des indépendants/ RSI) and come under an international agreement that does not cover self-employed workers.

Through Lura, members who are also referred to as “multiple-pension claimants,” are only required to submit a single pension claim and only draw a single pension (rather than several as before).

An individual can submit a pension claim to any of the pension funds to which they have belong. The funds then work together to compile the information needed to process the claim and calculate the pension.

In general, the competent scheme to calculate and pay the applicant's pension is the last one to which they belonged. However, priority rules may apply instead: this is the case when the insured was last a member of two aligned schemes at the same time or when Lura does not apply to their last scheme of membership.

The member's single retirement pension is calculated and paid as if they had belonged to only one of their participating schemes.

Average yearly income: the sum of the individual's average salaries and income for their 25 best years under all aligned schemes combined. This sum must not exceed the amount of the applicable annual social security ceiling for each year being counted.

Rate: between 37.5 and 50%. When the rate is determined based on length of insurance, length of insurance and equivalent periods accrued under the aligned schemes to which Lura applies are counted in addition to length of insurance under the other compulsory schemes to which the individual has belonged. The number of quarters credited under these schemes cannot exceed 4 per calendar year.

Accrued length of insurance: total of all quarters credited to the individual's account under the aligned schemes to which Lura applies (maximum 4 quarters per calendar year).

2 - Survivors' entitlements

A Survivor's pension or widowhood allowance corresponding to part of the retirement pension that the deceased claimant received or could have received may be paid to the surviving spouse.

Survivor's retirement pensions and the widowhood allowance are paid by:

the regional pension and occupational health funds (caisses [régionales] d'assurance retraite et de santé au travail/ CARSAT),

the National Old-Age Insurance Fund for Île-de-France (Caisse Nationale d'Assurance Vieillesse d'Île-de-France) for the Paris region,

the General Social Security Funds (for the Overseas Departments),

the CSS in Mayotte.

a) The survivor's retirement pension

The survivor's retirement pension is intended for surviving spouses and ex-spouses. It is not awarded automatically but subject to specific age and income tests:

The surviving spouse or ex-spouse must be at least 55 years old;

The surviving spouse or ex-spouse's personal income and that of the new household in the case of remarriage, civil union (PACS) or common-law partnership must not exceed a given ceiling (€24,232 per year for a person living alone).

If the deceased spouse had been married more than once, the survivor's retirement pension will be prorated and shared among the surviving spouses based on the length of each marriage.

The amount of the survivor's retirement pension may not exceed 54% of the deceased spouse's pension or the pension to which the deceased spouse would have been entitled.

It cannot amount to less than €348 (minimum amount, January 2024) if the deceased spouse or ex-spouse had accrued 60 quarters under the basic scheme. If they had accrued fewer than 60 quarters, this minimum is proportionally reduced.

The surviving spouse can be awarded a pension increase of €110.16 per month (January 2024) if s/he has at least one child under the age of 16 and is not drawing a personal retirement pension.

A 10% increase applies for surviving spouses who have raised three or more children.

Persons having reached the qualifying age for a full pension, having claimed the retirement pensions to which they are entitled and whose total pension income does not exceed €976.23 per month (January 2024) are entitled to an 11.1% increase in the amount of the survivor's retirement pension.

b) Widowhood allowance

The widowhood allowance can be paid for 2 years to any person under 55 years of age:

whose income for the 3 calendar months prior to their application does not exceed €2,616.825 (January 2024),

whose spouse paid old-age insurance contributions for at least three months (consecutive or otherwise) over the twelve-month period preceding their death.

The widowhood allowance is paid at a rate of €697.82 per month (January 2024).

For more information, visit L'assurance Retraite's website.

c) Orphans

Children who have lost both parents may receive an orphan's pension (the death must have occurred on September 1st, 2023 or after) for each parent. The orphan's pension amounts to 54% of each deceased parent's main pension. If there is more than one orphan, the total pensions awarded must not exceed the main pension the deceased would have received (split equally between the beneficiaries in this case).

The orphan's pension can be served until the age of 21. Its payment may be extended within the limit of 4 years when the beneficiary's occupational income does not exceed 55% SMIC. It may be granted without age limit for people with a disability (also means-tested).

B - Compulsory supplementary pension schemes

Membership in a supplementary retirement pension scheme is compulsory for all employees subject to statutory old-age insurance through the general social security scheme.

For private-sector employees, supplementary pensions are administered by the Agirc-Arrco scheme, which is the result of the January 1, 2019, merger of the Arrco scheme (Association for Employees' Supplementary Pension Schemes), covering all categories of employees, with the Agirc scheme (General Association of Retirement Institutions for Executives), covering only managerial and executive staff (“cadre” status).

Like the basic retirement pension scheme, Agirc-Arrco functions on a pay-as-you-go basis: the contributions paid by salaried workers and the employers are immediately used to pay current retirees' pensions.

It is a point-based system: each year, an individual's contributions are converted to retirement pension points and added to his/her account. To calculate the amount of your retirement pension, just multiply your number of points by the value of the point, which is determined each year.

1 - Contributions

Supplementary retirement pension contributions are calculated based on the pay components that go into the Social security contribution basis. As from January 1st, 2019, the Agirc-Arrco scheme uses a 2-salary-bracket contribution basis. A separate contribution rate applies to each salary bracket and is shared between the employer (60%) and the employees (40%).

Basis Employee's rate Employer's rate Total Point calculation rate Bracket 1: between €0 and €3,864 (1 monthly Social security ceiling) 3.15% 4.72% 7.87% 6.2% Bracket 2: between €3,864 and €30,912 (8 times the social security ceilings) 8.64% 12.95% 21.59% 17%

The adjusted contribution rate is the contractual contribution rate (or point calculation rate) multiplied by an adjustment factor of 127%. Points accrued by employees on the basis of paid contributions (employee's share + employer's share) are calculated using the contributions resulting from the application of the point calculation rate. The surplus calculations that result from the application of the adjustment factor are used to finance the Agirc-Arrco scheme.

Each year the point purchase value is set. It is used to determinate the number of points accrued in a year.

Annual point purchase value for 2024: €19.6321.

Depending on the employee's status (executive (cadre) or not), two or three additional contributions are withheld:

CEG: overall balance contribution, intended to compensate for expenditure resulting from retirement pension claims before age 67,

CET: technical balance contribution which applies to employees whose salary is greater than the social security ceiling,

Apec (Association for the employment of executive staff).

Please also see: table of social security contribution rates and ceilings.

2 - Accruing points

France's supplementary retirement pension schemes are point-based.

Points are determined by taking into account both those accrued through contributions and those awarded with no payment of contributions, i.e.:

for periods of employment accrued before the scheme became applicable,

for periods of incapacity for work lasting more than 60 consecutive days for which the insured drew daily health, maternity, or industrial accident insurance benefits,

periods for which the insured drew a disability pension,

periods for which the insured drew unemployment benefits.

Points may be bought back for the years of higher education and incomplete years, subject to certain conditions. 140 points may be bought back for each year of higher education or incomplete year, within the limit of 3 years

Three factors are used to calculate retirement pension points: contribution basis, point calculation rate, and point purchase value.

3 - Claiming a pension

Age

A supplementary retirement pension is awarded at the full rate to individuals:

who have reached the statutory age (between 62 and 64) and have accrued the required number of quarters for entitlement to a full-rate basic retirement pension (according to their year of birth).

who have reached the age of 67, with no required length of employment.

A supplementary retirement pension can be awarded at the full rate before the statutory age if the applicant has been awarded his/her basic retirement pension on the basis of a long career or on the basis of permanent inability to work.

Amount

On January 1st, 2019, the unified Agirc-Arrco scheme rolled out a temporary pension increase/ decrease system. It is intended as an incentive for members to keep working beyond the age at which they become eligible for a full-rate retirement pension.

This system only applies to members who were born on or after January 1st, 1957, and who become eligible for a full-rate Agirc-Arrco retirement pension before 1st December 2023.

The temporary increase or decrease applies to pensions effective before 1st December 2023. As from 1st April 2024, the temporary increase or decrease shall no longer be applied to all pensions.

Effective November 1st, 2023, the Agirc-Arrco point value is €1.4159.

The amount of a member's pension is proportional to their earned income over their entire career, not just their 25 best-earning years as is the case for the basic scheme.

4 - Family-related top-ups

There are two types of child-related top-ups:

The dependent-child top-up

The top-up for having or raising children.

These two top-ups cannot be awarded at the same time. Those who qualify for both are awarded the higher of the two.

If the dependent child top-up turns out to be higher, the member's top-up entitlements are compared every time one of their children ceases to be a dependent. When they stop drawing the dependent-child top-up, they will be able to qualify for the top-up for having or raising children.

Both parents can benefit from supplements on their complementary pension.

Agirc-Arrco child-related top-ups are calculated based on the employee's entitlements, without taking account of any permanent downrating factors.

To learn more: www.agirc-arrco.fr

5 - Reversion pension

Upon the death of a salaried worker or pensioner, some of his or her complementary pension may be paid to one or more beneficiaries, called rightful claimants.

The beneficiaries of the reversion pension are: the spouse or widow(er), the ex-spouse or ex-spouses, orphans having lost both parents.

Unlike the basic scheme, the reversion pension is not means-tested.

Surviving spouse

A surviving spouse or surviving former spouse (who has not remarried) may qualify for a reversion pension. Surviving domestic and civil union (Pacs) partners are not eligible for a reversion pension.

Age requirements:

Without any age requirement if, on the death of the insured spouse, the survivor has 2 dependent children (under the age of 18, or 25 if they are students, apprentices or registered for France Travail and not compensated, without age requirement in case of disability established before the age of 21) or if the survivor is disabled (rate of incapacity of at least 2/3),

from the age of 55 if the employee's or pensioner's death occurred on or after January 1st, 2019.

If the death occurred prior to January 1st 2019, the age requirements set forth by the former Agirc and Arrco schemes apply:

From age 55 for the Arrco reversion pension if the employee's or pensioner's death occurred on or after July 1st, 1996,

From age 60 for the Agirc reversion pension if the employee's or pensioner's death occurred on or after March 1st, 1994. The eligibility age can be moved forward to 55. In this case, the amount of the Agirc reversion pension is lowered unless the claimant has been awarded a reversion pension from the basic scheme.

Unlike under the basic scheme, this reversion pension is awarded with no means test.

The pension amounts to 60% of the late spouse's accrued entitlement.

Orphans

Under the Agirc-Arrco scheme, only a child who has lost both parents can receive a reversion pension:

if they are under 21 years of age at the time of their remaining parent's death,

or if they are under 25 and a dependent of the remaining parent at the time of death,

or with no age requirement if they have been recognized as disabled age 21, whatever their age at the time of death.

Reversion pension payments stop when the orphan reaches age 21 or 25 (or prior to that age, if the orphan is no longer a student, apprentice, or jobseeker without benefits), if they are no longer unfit for work, or if they have undergone a full adoption.

An orphan can be awarded a pension on the basis of each parent's entitlements.

If the remaining parent's death occurred after January 1st, 2019, the orphans' Agirc-Arrco reversion pension will amount to 50% of the entitlements accrued by one or both parents.

If the remaining parent's death occurred prior to January 1st, 2019:

Orphans' Arrco reversion pension: 50% of entitlements.

Orphans' Agirc reversion pension: 30% of entitlements.