In France, it is obligatory to pay into both the retraite de base (basic state pension scheme) and the retraite complémentaire (supplementary private pension).
The basic state pension is financed by the social security system. It is based on the average annual wage, a standard rate, and the length of time a person has paid into the pension system.
Employees contribute a certain sum each month to the Social Security system and to their complementary pension schemes. The contributions are deducted directly from the salary.
The official retirement age iscurrently62 years. As a major topic of national debate, however, the retirement age could change depending on reforms under discussion.
For more information on the state pension:
- Social security website (multilingual): https://www.lassuranceretraite.fr/portail-info/home.html
- Cleiss website for social security system in France (in English): https://www.cleiss.fr/docs/regimes/regime_france/an_3.html
- Official site with simplified explanations: https://www.info-retraite.fr/portail-info/en/sites/PortailInformationnel/home.html
For more information on the supplementary pension (in French):
ILL Personnel Administration and Payroll group
ILL 4 - Office 022 – Tel.: 70 02 / 71 06 / 73 73 - E-mail: firstname.lastname@example.org
To be entitled to a full state pension, you need to have contributed for a certain number of annual quarters. If you do not have the required number of quarters, you can still retire at the official retirement age, but you will not be paid a full pension.
Complementary private pension: AGIRC-ARRCO
AGIRC-ARRCO is a private pension fund set up for all staff members in the private sector in France. In order to benefit, employees must pay into the fund. The value of the pension is calculated based on the number of contributions paid (points acquired) during a working career, multiplied by the value of each point.
To retire with a full pension without having the required number of quarters, you will have to be 67 years old. Note also that, as of January 2019, if you were born in 1957 or later, and if you retire at the official retirement age (62 years at time of writing), a reduction of 10% will be applied to your complementary (private) pension for three years. The inverse also can apply under certain circumstances: if you work beyond the required period, you can receive a higher monthly benefit.
The Retraite progressive is a scheme which allows you to work part-time while receiving a fraction of your basic pension and a fraction of your complementary pension.
Consult the AGIRC-ARRCO website to discover more about various plans and options (in French):
Documents you must keep indefinitely:
- Certificates of employment and your pay slips.
- Most recent point count statement (complementary pension).
Never distribute original documents; always provide copies when requested.
TIP: Be sure that you are fully informed of the implications of working abroad on your home pension scheme.
Salary documents are managed by the Personnel Administration and Payroll group (ILL 4 - Office 022 – Tel.: 70 02 / 71 06 / 73 73 - E-mail: email@example.com)