We should work up to 64 years to reach retirement … – Le Figaro

We should work up to 64 years to reach retirement … – Le Figaro

In a report, the Court of Auditors calls for an increase to 64 the retirement age for retirement in private to fully benefit from the complementary pension. Objective:. Rectify urgently deficit accounts Agirc and Arrco

The chamber has just found a powerful ally in the negotiations on the future of supplementary pensions. To save Agirc (frames) and Arcco (non-management) threatened by the recent deficit accumulation these years, the Court of Auditors recommended in a shock report will be published -which Thursday but the Parisien reveals that extracts Monday- to raise the retirement age to receive a full supplementary pensions in the private.

The report, called “Securing the Future of supplementary pensions of employees (AGIRC and ARRCO),” the Sages of the rue Cambon considering a two-year increase in the retirement age to retire resulting in an increase in “all legal ages of departure.” The legal age is currently 62 years, that means it should work up to 64 years to reach its complementary retirement. This measure would release a line of cumulative financing from 59 to € 94 billion, according to the authors.

Decrease pensions and increase the level of contributions

This track thinking is supported by long MEDEF who even calls for an increase in the retirement age to 65 year old. The chamber also argues a discount on additional of those who retire before 65 or 67 years.

In addition to raising the age of retirement, the Court of Auditors advocates of enhance recovery efforts already made by reducing the amount of pensions and increasing the level of contributions. The Court also puts on the table the idea of ​​a merger AGIRC ARRCO and overall review of the system considered more favorable for executives, Agirc benefiting each year a net transfer of about 1 billion euros from Arrco.

Appointments February 17

Agirc is in the most critical situation. With 2.7 million pensioners only 4 million contributors, technical deficit (that is to say the difference between revenues and expenditures) widened to 3.272 billion euros last year. Its reserves of 16.1 billion euros in 2013, enabling it to continue to pay pensions but should dry out starting in 2018, recalls the Court of Auditors. An alarming situation when we know that the regime can not achieve debt to pay pensions.

Arrco, which manages supplementary pensions for non-executive, has a slight respite. With 18.1 million contributors to 11.9 million retirees, the deficit reached 3.848 billion euros, but its reserves are around 63 billion. If nothing is done, Arrco will dry in 2027. And overall deficits couple AGIRC ARRCO will widen to 15 billion by 2030, according to the report.

This degradation s’ explained by the arrival of the baby-boom generation at retirement age, longer life expectancy and the economic downturn. But the Court of Auditors also points to too high management costs of 1.8 billion euros last year, representing 2.7% of the amount of contributions. The authors argue for a rethinking of the functioning of existing funds.

All of these proposals will be discussed by the unions and management as of 17 February, the date of the opening of the negotiations which should lead an agreement in June 2015 to rescue the two regimes.