Crucial Negotiations for the Agirc-Arrco Complementary Pension Scheme: What Changes Are on the Horizon?


The Agirc-Arrco complementary retirement system is facing substantial changes. As social partners initiated a cycle of negotiations on Tuesday, September 5, they have a tight deadline to address several crucial issues, no later than October 4. The stakes? Deciding on the future of the 10% penalty on the complementary pension, the revaluation of pensions, and considering the accumulation of employment and retirement, among other things.

The 10% Malus in Question

One of the main issues at stake is the removal of the 10% malus on the complementary pension. This bonus-malus system was introduced in 2019 to encourage workers to remain active beyond 62 years, the legal retirement age at that time. However, with the gradual raising of this age to 64 years, and a positive technical result of 5.6 billion euros in 2022 for Agirc-Arrco, the relevance of this malus is being questioned.

Trade union organizations are unanimous: the malus must be abolished. The employers, being more cautious, want to evaluate all financial implications before making a decision. Future discussions should address the terms of the removal of this malus, particularly for current retirees who are subject to this penalty.

Pension Revaluation

Given inflation and the evolution of wages, a revaluation of retirement pensions is expected by November 1, 2023. Last year, pensions increased by 5.12%. Everything indicates that the increase will be significant again this year, but no amount has been set yet.

Employment and Retirement Accumulation: Towards New Rights?

The pension reform has changed the rules of employment and retirement accumulation (CER) in the basic scheme. It remains to be seen whether these changes will also be applied in the Agirc-Arrco complementary scheme, which could increase the level of the complementary retirement pension.

A Treasure to Use?

Agirc-Arrco has a substantial reserve of 68 billion euros. This sum could give social partners some flexibility in negotiations, particularly to improve the rights of workers and retirees. The reserve is another key topic of discussion between unions and employers.

With a tight deadline for negotiations, social partners will need to quickly find solutions for the various outstanding issues. Whether it’s the 10% malus, the revaluation of pensions, or employment and retirement accumulation, these discussions are crucial for the well-being of current and future retirees. The Agirc-Arrco complementary scheme is an important pillar of the French pension system, and the decisions made over this month will define its functioning for the years to come.