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In 2023, Agirc-Arrco’s accounts remained in the green. The supplementary pension scheme recorded a technical result of more than 4 billion euros.
Capital Video: Agirc-Arrco supplementary pension: the scheme confirms its good financial health
© Agirc-Arrco – In 2023, Agirc-Arrco recorded a technical result of more than 4 billion euros.
“Reassuring”. It is with this qualifier used several times that the accounts of Agirc-Arrco, supplementary pension for private sector employees, were presented this Thursday March 28. For 2023, the technical result* of the scheme amounts to 4.3 billion euros. A figure nevertheless down compared to 2022, when it reached 5.6 billion euros. A withdrawal which is explained by a greater increase in costs than that of resources. “For 2023, the pension reform had no effect on the results of Agirc-Arrco”made a point of specifying Brigitte Pisa, president (CFDT) of Agirc-Arrco, in the introduction to the press conference presenting these results.
In detail, resources, which mainly consist of contributions paid by employees, increased by 5.3%, going from 93.8 to 98.8 billion euros. This increase is due in particular to salary increases practiced in many sectors, which therefore bring more contributions into the funds. The dynamic is, however, slowed down by the significant slowdown in job creation. “They were 225,000 in 2023 compared to 600,000 in 2022”, specifies François-Xavier Selleret, director of Agirc-Arrco. Fewer jobs created means that the increase in contributions flattened last year.
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Growing reserves
For their part, expenses, mainly linked to the payment of pensions, increased by 7.1%, from 88.3 billion euros in 2022 to 94.5 billion euros in 2023. This increase is explained by the significant revaluation of pensions on November 1, 2022 (+5.12%) which mainly concerns the 2023 accounts and the revaluation of +4.9% on November 1, 2023, for which the effects will mainly be visible in 2024. “1% increase in supplementary pensions means a billion more expenses for the system per year”, recalls Brigitte Pisa. Another factor is increasing costs: the increase in the number of retirees, with the increasing arrival of baby boomers.
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Another positive signal for the regime is the level of its reserves. At the end of 2023, they amounted to 78.5 billion euros compared to 68 billion euros at the end of 2022. “These reserves benefited from the good health of the financial markets”points out François-Xavier Selleret. “They are a shock absorber for the regime to cope with the evolution of demographics and the economy”, underlines Didier Weckner, vice-president (Medef) of Agirc-Arrco. Indeed, they could cushion the expected shock due to a growing number of retirees, the baby boomers being increasingly old enough to stop working.
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A positive result for the public accounts
All of these financial elements allow the scheme to remain on track with its Golden Rule which consists of always having six months of allowances in advance to face possible economic hazards. “These results are positive and reassuring for retired private sector employees.welcomes Didier Weckner. They are also positive for the Nation’s accounts because, in public accounting, the positive result of Agirc-Arrco comes as a reduction in the public deficit, which represents 0.2 points of GDP. A way of inviting Agirc-Arrco into the current debate on the deterioration of public finances, showing that it is taking its part to improve the balance, by -5.5% in 2023.
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A reminder which also aims to cut off any desire to puncture of Etat in the regime’s reserves. An idea that emerged in 2023, following the pension reform and the gains it could bring to Agirc-Arrco. “The result of Agirc-Arrco belongs to employees and retirees in the private sector. It is therefore not public money, even if our results are deducted from public deficits”, supports Brigitte Pisa. A reminder to the government if it is ever tempted to return to the charge to help itself to the regime’s coffers.
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* Or the difference between resources and expenses excluding financial results.
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