Overview
- On Wednesday, October 14, Agirc‑Arrco’s co‑managers agreed to a 1.4% revaluation of complementary pensions to take effect on November 1 for about 14 million beneficiaries.
- The rise is below current inflation and will reduce beneficiaries' purchasing power compared with a fully indexed increase.
- Agirc‑Arrco’s formal rules require a 0.4‑point under‑indexing versus inflation and cap the practical range of possible increases at roughly 1.2%–1.9%, which largely determined negotiators’ options.
- The fund’s reserves, reported at just over €90 billion (about ten months of payments), and the fact that each 1% of revaluation adds roughly €1 billion a year to payouts, drove a cautious compromise shaped by concerns over long‑term balance and government budget targets.
- The decision ends the 2025 freeze but leaves tense politics on the table, with union protests before the vote and upcoming renegotiations for 2027–2030 that will test paritarian management and pressure from a government seeking pension savings.