2024-03-23 21:55:00
In the wake of the 2023 pension reform, many retirees were expected to see their pension increase thanks to the increase in the minimum contributory amount. However, this increase is currently overdue for nearly a million people.
An objective set by the pension reform
The pension reform’s objectives included raising the legal retirement age and increasing the number of quarters needed to receive a full pension. The government thus wanted to achieve a pension threshold of 85% of the minimum wage for employees who have had a full career at the minimum wage. To achieve this, it decided to increase the minimum contributory amount and its enhanced amount, as well as to implement this measure retroactively for all retirees concerned.
1.7 million people affected by the measure
In total, around 1.7 million retirees are affected by the increase in the minimum contribution, of whom nearly a million are still waiting for this measure to be implemented. The National Old Age Insurance Fund (Cnav) had promised several waves of revaluation to deal with all cases by the fall of 2024, but it is currently facing difficulties in identifying and implementing this increase. Indeed, the files of the retirees concerned are often complex, particularly for those who have contributed to several pension funds or those whose career must be rebuilt for the increase to be applied.
A possible delay in the estimated schedule
According to Renaud Villard, general director of Cnav, it is unlikely that the initial schedule will be respected: “ I don’t think we can do better; The deadline is already very tight“. He even mentions the possibility of a delay in the implementation of this measure, which directly impacts nearly a million retirees. However, they should receive this increase retroactively from September 2023.
Who is affected by the increase in the minimum contribution?
To benefit from this increase, retirees must meet certain criteria. First, they must have liquidated their pension with a full insurance period, that is to say have all the required quarters. Secondly, their total retirement pension must be less than €1,367.51, meaning they have contributed on low salaries throughout their career. If these conditions are met, their pension will automatically be increased to the floor amount of the minimum contributory amount.
New values for the minimum contribution and its increased amount
With the government decision and the revaluation carried out in January, the value of the minimum contribution now amounts to €733.03 gross per month. As for the enhanced contributory minimum, it is set at €876.13 for people who have contributed at least 120 quarters. This increase should concern a large number of retirees who have worked at salary levels close to the minimum wage throughout their career.
Payment schedule
Of the 1.7 million promised raises, only 600,000 have already been given to eligible retirees. For the remaining million, the final deadline announced is September 2024. However, Renaud Villard, general director of Cnav, warns that we will have to be patient and that “ we can’t do better“. The people concerned will have to wait several more months before seeing an increase in their pensions.
An average increase of €60 for future beneficiaries
For the 600,000 people already affected by this measure, the increase in their pension was on average €50 gross, according to information communicated by Renaud Villard. On the other hand, for the thousands of retirees who are still waiting for this adjustment, the average increase should be slightly higher, around €60. This difference is explained by the fact that the latter generally receive lower pensions than those who were able to benefit from the measure as soon as it was put in place.
In conclusion, if this revaluation of small pensions proves promising for the retirees concerned, many of them will still have to wait before experiencing a concrete improvement in their financial situation.
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