how to calculate your pension?
Millions of retirees from the private sector receive the Agirc-Arcco supplementary pension. Here are the elements to know its amount.
The supplementary pension allows those who receive it to have a small supplement in addition to their traditional retirement pension. In this period of inflation, where everything increases except the household purchasing powerit is good to know the amount of your income that you receive monthly, and how it is calculated.
How to calculate the amount of your pension with Agirc-Arrco points?
There Agirc-Arrco supplementary pension concerns 13 million retired beneficiaries from the private sector and 26 million working people. The calculation of the supplementary pension is based on a points system. The value of this point is fixed at 1.3498 euros, as indicated by the site Public service.
When you apply for a pension, your number of retirement points acquired during your career is multiplied by the service value of the point. The supplementary retirement pension is paid monthly.
However, if the number of points is between 101 and 200, it is paid annually. If it is less than or equal to 100, the pension is paid in one go. The supplementary retirement pension is subject to an annual revaluation on 1 November. You can estimate the amount of your supplementary retirement pension here.
The contribution rates are as follows: from 7.87% of contribution rate (employee and employer) for an annual remuneration (contribution base) of up to 43,992 euros for bracket 1 and 21, 59% of contribution rate for annual remuneration of between 43,992 and 351,936 euros for bracket 2 .
Contributions are paid 60% by your employer (i.e. 4.72% on tranche 1 and 12.95% on tranche 2) and 40% by you (i.e. 3.15% on tranches 1 and 8 .64% on tranche 2). The pension points acquired are calculated as follows: (Remuneration x point calculation rate) / purchase price of the pension point (also called reference salary).
What is the minimum amount of the supplementary pension?
The Agirc-Arrco supplementary retirement pension is paid without reduction in the number of retirement points from the age of 67. Before the age of 67, it is paid without reduction on the number of points, if you get a pension full-rate Social Security retirement insurance, for disability, long career, inability to work or for another particular situation.
You can apply for your supplementary pension from the age of 57 even if you do not benefit from a retirement pension from the Social Security retirement insurance at the full rate. But, in this case, your number of retirement points is reduced by applying a reduction coefficient, which varies according to the age at which you request your retirement.
As we indicated in a previous article, the minimum amount of supplementary pension Agirc-Arrco depends on the number of points you have, and therefore the number of years contributed.
After passage of the pension reform, a person born in 1961 who started working at the age of 20, having had a full career paid at minimum wage and having liquidated his pension on January 1, 2023 will be able to claim his full pension rights beginning of 2023 after 42 years of career (168 quarters). His monthly gross retirement pension from Agirc-Arrco will be “around 255 euros”. An employee who has acquired 4,000 points can receive 5,399.20 euros per year in supplementary pension.