pensions in france - Observatoire des retraites

Transcription

OBSERVATOIRE DES RETRAITES: SPECIAL EDITION
JANUARY 2003 - N O 3
PENSIONS
IN FRANCE
STATISTICS
DEFINITIONS
TRENDS
COMPARISONS
PROJECTIONS
EDITORIAL
T
he aim of this new edition of ‘Retirement Pensions’,
wich was formely published in march 2002, for the french version,
is to assemble the essential figures available on retirement in
a single document. Unlike the two previous issues we have
chosen to provide only figures concerning retirement in France.
We have consequently enlarged upon certain current themes
of interest such as the ends of working careers, dependency
or retirement savings. The debate on the future of pensions also
entails development of statistical information. ‘Retirement
Pensions’ benefits from new figures and updating of previous
research. The principal innovation of 2001 was the publication of
the first report of the Conseil d’orientation des retraites entitled
‘Retirement: renewing the social contract among generations’.
The Conseil d’orientation des retraites, established in 2000,
with the help of pension schemes and government organisations
carries out analyses and long term projections. Figures published
earlier, for example in the Charpin report ‘The Future of our
Pensions’ have not been called into question but for the most
part confirmed.
To facilitate use of this document, we have introduced a new
format and added a index to allow easier access to information.
We hope this publication fulfils its pedagogical vocation
and constitutes a tool for all those interested in the question of
retirement.
RETIREMENT PENSIONS: A STATISTICAL ANALYSIS
JANUARY 2003
EDITORIAL
T
he aim of this new edition of ‘Retirement Pensions’,
wich was formely published in march 2002, for the french version,
is to assemble the essential figures available on retirement in
a single document. Unlike the two previous issues we have
chosen to provide only figures concerning retirement in France.
We have consequently enlarged upon certain current themes
of interest such as the ends of working careers, dependency
or retirement savings. The debate on the future of pensions also
entails development of statistical information. ‘Retirement
Pensions’ benefits from new figures and updating of previous
research. The principal innovation of 2001 was the publication of
the first report of the Conseil d’orientation des retraites entitled
‘Retirement: renewing the social contract among generations’.
The Conseil d’orientation des retraites, established in 2000,
with the help of pension schemes and government organisations
carries out analyses and long term projections. Figures published
earlier, for example in the Charpin report ‘The Future of our
Pensions’ have not been called into question but for the most
part confirmed.
To facilitate use of this document, we have introduced a new
format and added a index to allow easier access to information.
We hope this publication fulfils its pedagogical vocation
and constitutes a tool for all those interested in the question of
retirement.
JANUARY 2003
USEFUL ADDRESSES
PENSION SCHEMES
CNAVTS
(Social Security General Scheme)
110 avenue de Flandres - 75019 Paris, France
Tel.: 33 1 55 45 50 00 - Website: http://www.cnav.fr/
CCMSA
(Farmers social insurance)
Les Mercuriales - 40 rue Jean Jaurès - 93547 Bagnolet Cedex, France
Tel.: 33 1 41 63 77 77 - Fax: 33 1 41 63 72 66 - Website: http://www.msa.fr/
ARRCO
(Supplementary pension for workers)
16-18 rue Jules césar - 75012 Paris, France
Tel.: 33 1 71 72 12 00 - Website: http://www.arrco.fr/
AGIRC
(Supplementary pension for executives)
Tel.: 33 1 71 72 12 00 - Website: http://www.agirc.fr/
IRCANTEC
(Supplementary pension for contract public employees)
24 rue Louis Gain – 49039 Angers cedex 01, France
Tel.: 33 2 41 05 25 33 (for employers) - 33 2 41 05 25 25 (for pensioners)
Website: http://www.ircantec.fr/
ORGANIC
(National old-age, disability and death insurance for shopkeepers
and industrialists)
9 rue Jadin -75017 Paris, France
Tel.: 33 1 40 53 43 00 / Fax: 33 1 47 64 92 00 - Website: http://www.organic.fr/
CANCAVA
(National scheme for craftsmen)
28 boulevard de Grenelle - 75015 Paris, France
Tel.: 33 1 44 37 51 00 - Fax: 33 1 44 37 52 05
Website: http://www.cancava.fr/
CNBF
(National scheme for lawyers)
11 boulevard de Sébastopol - 75001 Paris, France
Tel.: 33 1 42 21 32 30 - Fax: 33 1 42 21 32 71 - Website: http://www.cnbf.fr/
CENTRES FOR RESEARCH AND STATISTICS
Commission for the General Plan
18 rue de Martignac - 75700 Paris 07 SP, France
Tel.: 33 1 45 56 51 00 - Fax: 33 1 45 56 54 49 - Website: http://www.plan.gouv.fr/
Economic and Social Council
9 place d'Iéna - 75116 Paris, France
Tel.: 33 1 44 43 60 00 - Fax: 33 1 44 43 64 82 - Website: http://www.ces.fr/
Pension Orientation Council
113 rue de Grenelle - 75007 Paris, France
Tel.: 33 1 53 85 15 50 - Fax: 33 1 53 85 15 49
Cour des Comptes
13 rue Cambon - 75100 Paris RP, France
Tel.: 33 1 42 98 95 00 - Fax: 33 1 42 60 01 59 - Website: http://www.ccomptes.fr/
Caisse des Dêpots et Consignations, Retirement Division
67 rue de Lille - 75007 Paris, France
Tel.: 33 1 40 49 86 06 - Website: http://www.caissedesdepots.fr/dante/
CTIP
(Technical centre for provident institutions)
10 rue Cambacérès - 75008 Paris, France
Tel.: 33 1 42 66 68 49 / Fax: 33 1 42 66 64 90 - Website: http://www.ctip.asso.fr/
DARES
(Coordination of research, surveys and statistics)
20 rue d’Estrées - 75700 Paris 07 SP, France
Tel.: 33 1 44 38 22 60 / Fax: 331 44 38 24 43
Website: http://www.travail.gouv.fr/index.asp/
DREES
(Evaluation of research, surveys and statistics)
Ministère de l'emploi et de la solidarité
11 place Cinq Martyrs Lycée Buffon - 75015 Paris, France - Tel.: 33 1 44 36 90 00
Social Security Administration
8 avenue de Ségur - 75007 Paris, France - Tel.: 33 1 40 56 60 00
FFSA
(French federation of insurance companies)
36 boulevard Haussman - 75009 Paris, France
Tel.: 33 1 42 47 90 00 - Fax: 33 1 42 47 93 11 - Website: http://www.ffsa.fr/
CNAVPL
(National scheme for the liberal professions)
102 rue Miromesnil - 75008 Paris, France
Tel.: 33 1 44 95 01 50 - Fax: 33 1 45 61 91 37 - Website: http://www.cnavpl.fr/
INED
(National institute for demographic surveys)
133 boulevard Davout - 75980 Paris Cedex 20, France
Tel.: 33 1 56 06 20 00 - Fax: 33 1 56 06 21 99 - Website: http://www.ined.fr/
CNRACL
(National scheme for municipal employees)
5 rue du Vergne - 33059 Bordeaux, France
Tel.: 33 5 56 11 41 41 - Website: http://br.caissedesdepots.fr/dante/cnracl/
INSEE
(National institute for economic surveys and statistics)
195 rue de Bercy - Tour Gamma A - 75582 Paris Cedex 12, France
Tel.: 33 1 41 17 66 11 - Fax: 33 1 53 17 88 09 - Website: http://www.insee.fr/
PREFON
(National provident scheme for the public sector)
12 bis rue de Courcelles - 75008 Paris, France
Tel.: 33 1 44 13 64 13 - Website: http://www.prefon.asso.fr/
OFCE
(Observatory of the Economy)
69 quai d'Orsay - 75007 Paris, France
Tel.: 33 1 44 18 54 00 - Fax: 33 1 45 56 06 15
Website: http://www.ofce.sciences-po.fr/
CGOS
(Committee for charitable works of public hospitals)
101 rue Tolbiac - 75013 Paris, France
Tél. : 33 1 44 23 13 15 - Fax: 33 1 44 23 13 01 - Website: http://www.cgos.asso.fr/
La Documentation française
29 quai Voltaire - 75007 Paris, France
Tel.: 33 1 40 15 71 10 - Fax: 33 1 40 15 72 30
Website : http://www.ladocfrancaise.gouv.fr/
CREF
(Supplementary pension savings for the public sector)
1 rue Paul Baudry - 75008 Paris, France
Tel.: 33 1 44 95 46 00 - Fax: 33 1 42 25 04 90 - Website: http://www.cref.tm.fr/
FUTURIBLES
55 rue de Varenne - 75341 Paris Cedex 07, France
Tel.: 33 1 53 63 37 70 - Fax: 33 1 42 22 65 54 - Website: http://www.futuribles.com/
Social Security centre for migrant workers
11 rue de la Tour des Dames - 75436 Paris Cedex 09, France
Tel.: 33 1 45 26 33 41 - Fax: 33 1 49 95 06 50 - Website: http://www.csstm.fr/
UNEDIC
(National employment union for industry and commerce)
80 rue de Reuilly – 75012 Paris, France
Tel.: 33 1 53 17 20 00 - Fa : 33 1 53 17 21 11 - Website: http://www.assedic.fr/
CONTENTS
FRENCH PENSION STATISTICS
RETIREMENT SCHEMES
5
1 INTRODUCTION
TO THE RETIREMENT SYSTEM
2 BASIC SCHEMES
5
7
2.1. CONTRIBUTIONS
7
2.2. BENEFITS
9
2.3. EQUILIBRIUM OF THE BASIC SCHEMES
2.3.1. The demographic situation in 2000
2.3.2. Compensation
2.4. RESERVE FUND
3 SUPPLEMENTARY SCHEMES
10
10
11
13
15
3.1. CONTRIBUTIONS
15
3.2. BENEFITS
17
3.3. EQUILIBRIUM OF THE
SUPPLEMENTARY SCHEMES
3.3.1. ARRCO/AGIRC financial solidarity
18
18
3.3.2. Demographic dependence rates of
some supplementary schemes in 2000
18
3.4. ASSETS
19
4 THE FORECASTS OF THE PENSION
ORIENTATION COUNCIL UP TO 2040
22
INDIVIDUALS
26
1 ACTIVE WORKERS
26
1.1. THE ACTIVE WORKING POPULATION
26
1.2. LENGTH OF THE ACTIVE WORKING LIFE
28
1.3. GROUP FUNDED PENSION
SAVINGS MEMBERS
31
2 FROM WORKING LIFE TO RETIREMENT
2.1. ENDS OF CAREERS
33
2.2. THE SITUATION PRIOR
TO PENSION SETTLEMENT
36
2.3. EARLY RETIREMENT
37
2.4. THE WORKING POPULATION OVER 60
42
3 PENSIONERS
GROUP FUNDING
24
JANUARY 2003
43
3.1. AGEING OF THE POPULATION AND
LIFE EXPECTANCY ACCORDING TO AGE
43
3.2. NUMBER OF PENSIONERS
46
3.3. THE STANDARD OF LIVING OF PENSIONERS
47
3.3.1. Income of pensioners and
changes in standard of living
47
3.3.2. Comparison of the replacement rate
for the private and public sectors
52
3.3.3. Comparison of the standard of living
of pensioners and active workers
3.3.5. Dependency
53
56
56
3.4. OLD AGE MINIMUM
59
INDEX OF CHARTS AND GRAPHS
62
3.3.4. Living conditions of pensioners
5 RETIREMENT THROUGH
33
USEFUL ADDRESSES
PENSION SCHEMES
CNAVTS
(Social Security General Scheme)
110 avenue de Flandres - 75019 Paris, France
Tel.: 33 1 55 45 50 00 - Website: http://www.cnav.fr/
CCMSA
(Farmers social insurance)
Les Mercuriales - 40 rue Jean Jaurès - 93547 Bagnolet Cedex, France
Tel.: 33 1 41 63 77 77 - Fax: 33 1 41 63 72 66 - Website: http://www.msa.fr/
ARRCO
(Supplementary pension for workers)
Tel.: 33 1 71 72 12 00 - Website: http://www.arrco.fr/
AGIRC
(Supplementary pension for executives)
Tel.: 33 1 71 72 12 00 - Website: http://www.agirc.fr/
IRCANTEC
(Supplementary pension for contract public employees)
24 rue Louis Gain – 49039 Angers cedex 01, France
Tel.: 33 2 41 05 25 33 (for employers) - 33 2 41 05 25 25 (for pensioners)
Website: http://www.ircantec.fr/
ORGANIC
(National old-age, disability and death insurance for shopkeepers
and industrialists)
9 rue Jadin -75017 Paris, France
Tel.: 33 1 40 53 43 00 / Fax: 33 1 47 64 92 00 - Website: http://www.organic.fr/
CANCAVA
28 boulevard de Grenelle - 75015 Paris, France
Tel.: 33 1 44 37 51 00 - Fax: 33 1 44 37 52 05
Website: http://www.cancava.fr/
CNBF
11 boulevard de Sébastopol - 75001 Paris, France
Tel.: 33 1 42 21 32 30 - Fax: 33 1 42 21 32 71 - Website: http://www.cnbf.fr/
CENTRES FOR RESEARCH AND STATISTICS
Commission for the General Plan
18 rue de Martignac - 75700 Paris 07 SP, France
Tel.: 33 1 45 56 51 00 - Fax: 33 1 45 56 54 49 - Website: http://www.plan.gouv.fr/
Economic and Social Council
9 place d'Iéna - 75116 Paris, France
Tel.: 33 1 44 43 60 00 - Fax: 33 1 44 43 64 82 - Website: http://www.ces.fr/
Pension Orientation Council
113 rue de Grenelle - 75007 Paris, France
Tel.: 33 1 53 85 15 50 - Fax: 33 1 53 85 15 49
Cour des Comptes
13 rue Cambon - 75100 Paris RP, France
Tel.: 33 1 42 98 95 00 - Fax: 33 1 42 60 01 59 - Website: http://www.ccomptes.fr/
Caisse des Dêpots et Consignations, Retirement Division
67 rue de Lille - 75007 Paris, France
Tel.: 33 1 40 49 86 06 - Website: http://www.caissedesdepots.fr/dante/
CTIP
(Technical centre for provident institutions)
10 rue Cambacérès - 75008 Paris, France
Tel.: 33 1 42 66 68 49 / Fax: 33 1 42 66 64 90 - Website: http://www.ctip.asso.fr/
DARES
(Coordination of research, surveys and statistics)
20 rue d’Estrées - 75700 Paris 07 SP, France
Tel.: 33 1 44 38 22 60 / Fax: 331 44 38 24 43
Website: http://www.travail.gouv.fr/index.asp/
DREES
(Evaluation of research, surveys and statistics)
11 place Cinq Martyrs Lycée Buffon - 75015 Paris, France - Tel.: 33 1 44 36 90 00
Social Security Administration
8 avenue de Ségur - 75007 Paris, France - Tel.: 33 1 40 56 60 00
FFSA
(French federation of insurance companies)
36 boulevard Haussman - 75009 Paris, France
Tel.: 33 1 42 47 90 00 - Fax: 33 1 42 47 93 11 - Website: http://www.ffsa.fr/
CNAVPL
(National scheme for the liberal professions)
102 rue Miromesnil - 75008 Paris, France
Tel.: 33 1 44 95 01 50 - Fax: 33 1 45 61 91 37 - Website: http://www.cnavpl.fr/
INED
(National institute for demographic surveys)
133 boulevard Davout - 75980 Paris Cedex 20, France
Tel.: 33 1 56 06 20 00 - Fax: 33 1 56 06 21 99 - Website: http://www.ined.fr/
CNRACL
(National scheme for municipal employees)
5 rue du Vergne - 33059 Bordeaux, France
Tel.: 33 5 56 11 41 41 - Website: http://br.caissedesdepots.fr/dante/cnracl/
INSEE
(National institute for economic surveys and statistics)
195 rue de Bercy - Tour Gamma A - 75582 Paris Cedex 12, France
Tel.: 33 1 41 17 66 11 - Fax: 33 1 53 17 88 09 - Website: http://www.insee.fr/
PREFON
(National provident scheme for the public sector)
12 bis rue de Courcelles - 75008 Paris, France
Tel.: 33 1 44 13 64 13 - Website: http://www.prefon.asso.fr/
OFCE
(Observatory of the Economy)
69 quai d'Orsay - 75007 Paris, France
Tel.: 33 1 44 18 54 00 - Fax: 33 1 45 56 06 15
Website: http://www.ofce.sciences-po.fr/
CGOS
(Committee for charitable works of public hospitals)
101 rue Tolbiac - 75013 Paris, France
Tél. : 33 1 44 23 13 15 - Fax: 33 1 44 23 13 01 - Website: http://www.cgos.asso.fr/
La Documentation française
29 quai Voltaire - 75007 Paris, France
Tel.: 33 1 40 15 71 10 - Fax: 33 1 40 15 72 30
Website : http://www.ladocfrancaise.gouv.fr/
CREF
(Supplementary pension savings for the public sector)
1 rue Paul Baudry - 75008 Paris, France
Tel.: 33 1 44 95 46 00 - Fax: 33 1 42 25 04 90 - Website: http://www.cref.tm.fr/
FUTURIBLES
55 rue de Varenne - 75341 Paris Cedex 07, France
Tel.: 33 1 53 63 37 70 - Fax: 33 1 42 22 65 54 - Website: http://www.futuribles.com/
Social Security centre for migrant workers
11 rue de la Tour des Dames - 75436 Paris Cedex 09, France
Tel.: 33 1 45 26 33 41 - Fax: 33 1 49 95 06 50 - Website: http://www.csstm.fr/
UNEDIC
(National employment union for industry and commerce)
80 rue de Reuilly – 75012 Paris, France
Tel.: 33 1 53 17 20 00 - Fa : 33 1 53 17 21 11 - Website: http://www.assedic.fr/
CONTENTS
FRENCH PENSION STATISTICS
RETIREMENT SCHEMES
5
1 INTRODUCTION
TO THE RETIREMENT SYSTEM
2 BASIC SCHEMES
5
7
2.1. CONTRIBUTIONS
7
2.2. BENEFITS
9
2.3. EQUILIBRIUM OF THE BASIC SCHEMES
2.3.2. Compensation
2.4. RESERVE FUND
3 SUPPLEMENTARY SCHEMES
10
10
11
13
15
3.1. CONTRIBUTIONS
15
3.2. BENEFITS
17
3.3. EQUILIBRIUM OF THE
18
18
3.3.2. Demographic dependence rates of
some supplementary schemes in 2000
18
3.4. ASSETS
19
4 THE FORECASTS OF THE PENSION
ORIENTATION COUNCIL UP TO 2040
22
INDIVIDUALS
26
1 ACTIVE WORKERS
26
1.1. THE ACTIVE WORKING POPULATION
26
1.2. LENGTH OF THE ACTIVE WORKING LIFE
28
1.3. GROUP FUNDED PENSION
SAVINGS MEMBERS
31
2 FROM WORKING LIFE TO RETIREMENT
2.1. ENDS OF CAREERS
33
2.2. THE SITUATION PRIOR
TO PENSION SETTLEMENT
36
2.3. EARLY RETIREMENT
37
2.4. THE WORKING POPULATION OVER 60
42
3 PENSIONERS
GROUP FUNDING
24
JANUARY 2003
43
3.1. AGEING OF THE POPULATION AND
LIFE EXPECTANCY ACCORDING TO AGE
43
3.2. NUMBER OF PENSIONERS
46
3.3. THE STANDARD OF LIVING OF PENSIONERS
47
3.3.1. Income of pensioners and
changes in standard of living
47
3.3.2. Comparison of the replacement rate
for the private and public sectors
52
3.3.3. Comparison of the standard of living
of pensioners and active workers
3.3.5. Dependency
53
56
56
3.4. OLD AGE MINIMUM
59
62
5 RETIREMENT THROUGH
33
‘PAY AS YOU GO’ PENSION
OCCUPATIONAL
CATEGORY
BASIC SCHEME
FUNDED PENSION
SUPPLEMENTARY
SCHEME
SUPPLEMENTARY
OCCUPATIONAL SCHEME
EMPLOYEES OF THE PUBLIC
AND PARAPUBLIC SECTOR
EMPLOYEES OF THE
PRIVATE SECTOR
FARM SECTOR
EMPLOYEES
SALARIED EMPLOYEES
Farm workers
and employees
Farm executives
Executives of industry,
commerce and services
Workers and employees
of industry, commerce
and services
Civil aviation flight
personnel
MSA
Social Insurance for Farmers
(83 funds)
Obligatory for all farm employees
Social Security General Scheme
administered by the CNAVTS,
the CRAM (Alsace, Moselle)
14 CRAM and 4 CGSS (D.O.M.)
Obligatory for employees
of the private sector
and contract employees
of the public and parapublic
sector
Contract employees
of the public
and parapublic sector
ARRCO
(77 funds)
Obligatory
for all employees
(executive and
non-executive)
within the limits
of the Social
Security ceiling
AGIRC
(34 funds)
Obligatory
for executives
1 Introduction to the retirement system
CRPNPAC
(Civil aviation flight personnel)
IRCANTEC
PREFON
CGOS
Mutual schemes
Obligatory for State contract employees
Social Security Special Schemes
Salaried employees
of the public
Optional schemes,
mainly company schemes.
Usually contracts art.83,
art.39, art.82
of the Tax Code,
managed by provident
institutions, mutual associations,
insurance companies or
supplementary pension groups
Civilian and military pension schemes (civil servants)
CNRACL (municipal workers), State worker schemes, ENIM (sailors), CRPCEN (notarial employees),
EDF-GDF (power utilities), RATP (Paris transport), SNCF (French railways), Banque de France,
CAMR (railway workers), Comédie Française, Paris Opera, Paris Chamber of Commerce,
CANSSM (miners)
Optional
The organisation of the system depends on several levels.
◆ The first level includes social security schemes, or basic schemes. Their rules are determined by public authorities.
They are managed in pay-as-you-go. They traditionally include the General Scheme which covers the greater part of
salaried workers, mainly those of the private sector; the special schemes which cover non-salaried workers (shopkeepers,
craftsmen, the liberal professions) and the special schemes covering salaried workers of the public sector.
MSA
(83 funds)
Obligatory
ORGANIC BASE
Shopkeepers and industrialists
26 inter-occupational and 5 occupational
funds - Obligatory
CANCAVA BASE
CANCAVA SUPPLEMENTARY
Craftsmen
30 inter-professional funds
+ CANAVIA (meat occupations)
and Hairdressers - Obligatory
30 inter-occupational fundss
+ CANAVIA and
Hairdressers - obligatory scheme
CNAVPL BASE
CNAVPL SUPPLEMENTARY
Obligatory scheme
Obligatory scheme
for most sections
Liberal professions
Lawyers
The French retirement system is based on a method of financing called ‘pay-as-you-go’. Contributions paid
by the active working population go immediately to paying retirement pensions. In return for contributions paid,
a contributor acquires rights for a future pension. The system is based on a principle of interdependence among
generations.
Supplementary funded schemes
for civil servants
SELF-EMPLOYED
Farmers
RETIREMENT SCHEMES
◆ The second level includes the supplementary schemes, thus called because their purpose is to supplement the basic
schemes in a way allowing a decent level of pension. Salaried employees of the public sector and certain professions
benefit from compulsory retirement schemes. Here too, financing through pay-as-you-go predominates, even though
some schemes have accumulated sizeable reserves.
‘Madelin law’ type optional group
insurance schemes
CRN (notaries), CAVOM (ministerial officers), CARMF (doctors), CARCD (dentists),
CAVP (pharmacists), CARSAF (midwives), CARPIMKO (medical auxiliaries),
CARPV (veterinarians), CAVAMAC (insurance agents), CAVEC (accountants),
CREA (arts, sports, tourism), CIPAV (architects)
CNBF BASE
CNBF SUPPLEMENTARY
Obligatory scheme
Obligatory scheme
Beneficiaries of the so-called ‘special schemes’ do not have compulsory supplementary schemes. The special schemes
provide a high level of coverage (75% of the reference scale for a full civil service career). As far as private sector
employees are concerned, the two levels, basic scheme + supplementary scheme, ensure on the average around 70%
of the final salary of a pensioner having completed a full career.
◆ The third level includes optional and supplementary coverage offered within a professional framework. Such
possibilities are financed almost exclusively through funding. They concern occupational pension schemes, compulsory
for a category or the whole of a company work force, group insurance contracts (the so-called ‘Madelin arrangements)
and individual membership schemes of the public sector.
CAVIMAC *
Clergy
Obligatory scheme
* formerly CAMAVIC
Source: ARRCO and Observatoire des Retraites, July 2001
4
JANUARY 2003
JANUARY 2003
5
‘PAY AS YOU GO’ PENSION
OCCUPATIONAL
CATEGORY
BASIC SCHEME
FUNDED PENSION
SUPPLEMENTARY
SCHEME
SUPPLEMENTARY
OCCUPATIONAL SCHEME
EMPLOYEES OF THE PUBLIC
AND PARAPUBLIC SECTOR
EMPLOYEES OF THE
PRIVATE SECTOR
FARM SECTOR
EMPLOYEES
SALARIED EMPLOYEES
Farm workers
and employees
Farm executives
Executives of industry,
commerce and services
Workers and employees
of industry, commerce
and services
Civil aviation flight
personnel
MSA
Social Insurance for Farmers
(83 funds)
Obligatory for all farm employees
Social Security General Scheme
administered by the CNAVTS,
the CRAM (Alsace, Moselle)
14 CRAM and 4 CGSS (D.O.M.)
Obligatory for employees
of the private sector
and contract employees
of the public and parapublic
sector
Contract employees
of the public
ARRCO
(77 funds)
Obligatory
for all employees
(executive and
non-executive)
within the limits
of the Social
Security ceiling
AGIRC
(34 funds)
Obligatory
for executives
1 Introduction to the retirement system
CRPNPAC
(Civil aviation flight personnel)
IRCANTEC
PREFON
CGOS
Mutual schemes
Obligatory for State contract employees
Social Security Special Schemes
Salaried employees
of the public
Optional schemes,
mainly company schemes.
Usually contracts art.83,
art.39, art.82
of the Tax Code,
managed by provident
institutions, mutual associations,
insurance companies or
supplementary pension groups
Civilian and military pension schemes (civil servants)
CNRACL (municipal workers), State worker schemes, ENIM (sailors), CRPCEN (notarial employees),
EDF-GDF (power utilities), RATP (Paris transport), SNCF (French railways), Banque de France,
CAMR (railway workers), Comédie Française, Paris Opera, Paris Chamber of Commerce,
CANSSM (miners)
Optional
The organisation of the system depends on several levels.
◆ The first level includes social security schemes, or basic schemes. Their rules are determined by public authorities.
They are managed in pay-as-you-go. They traditionally include the General Scheme which covers the greater part of
salaried workers, mainly those of the private sector; the special schemes which cover non-salaried workers (shopkeepers,
craftsmen, the liberal professions) and the special schemes covering salaried workers of the public sector.
MSA
(83 funds)
Obligatory
ORGANIC BASE
Shopkeepers and industrialists
26 inter-occupational and 5 occupational
funds - Obligatory
CANCAVA BASE
CANCAVA SUPPLEMENTARY
Craftsmen
30 inter-professional funds
+ CANAVIA (meat occupations)
and Hairdressers - Obligatory
30 inter-occupational fundss
+ CANAVIA and
Hairdressers - obligatory scheme
CNAVPL BASE
CNAVPL SUPPLEMENTARY
Obligatory scheme
Obligatory scheme
for most sections
Liberal professions
Lawyers
The French retirement system is based on a method of financing called ‘pay-as-you-go’. Contributions paid
by the active working population go immediately to paying retirement pensions. In return for contributions paid,
a contributor acquires rights for a future pension. The system is based on a principle of interdependence among
generations.
Supplementary funded schemes
for civil servants
SELF-EMPLOYED
Farmers
RETIREMENT SCHEMES
◆ The second level includes the supplementary schemes, thus called because their purpose is to supplement the basic
schemes in a way allowing a decent level of pension. Salaried employees of the public sector and certain professions
benefit from compulsory retirement schemes. Here too, financing through pay-as-you-go predominates, even though
some schemes have accumulated sizeable reserves.
‘Madelin law’ type optional group
insurance schemes
CRN (notaries), CAVOM (ministerial officers), CARMF (doctors), CARCD (dentists),
CAVP (pharmacists), CARSAF (midwives), CARPIMKO (medical auxiliaries),
CARPV (veterinarians), CAVAMAC (insurance agents), CAVEC (accountants),
CREA (arts, sports, tourism), CIPAV (architects)
CNBF BASE
CNBF SUPPLEMENTARY
Obligatory scheme
Obligatory scheme
Beneficiaries of the so-called ‘special schemes’ do not have compulsory supplementary schemes. The special schemes
provide a high level of coverage (75% of the reference scale for a full civil service career). As far as private sector
employees are concerned, the two levels, basic scheme + supplementary scheme, ensure on the average around 70%
of the final salary of a pensioner having completed a full career.
◆ The third level includes optional and supplementary coverage offered within a professional framework. Such
possibilities are financed almost exclusively through funding. They concern occupational pension schemes, compulsory
for a category or the whole of a company work force, group insurance contracts (the so-called ‘Madelin arrangements)
and individual membership schemes of the public sector.
CAVIMAC *
Clergy
Obligatory scheme
* formerly CAMAVIC
Source: ARRCO and Observatoire des Retraites, July 2001
4
JANUARY 2003
JANUARY 2003
5
The French system, the ‘three pillars’ and European law.
The organisation of pension systems varies widely from one country to another, precluding any simple classification.
The Swiss constitution provides for a pension system of three pillars: a basic scheme, an obligation for companies
to ensure a supplementary pension for their employees and special fiscal treatment for personal savings for retirement.
Such a system of three pillars is often used, notably by the Anglo-Saxons, who differ from the Swiss in setting off
and opposing an initial State pillar financed in pay-as-you-go, a second pillar of occupational funded pensions and
a third of personal savings.
Within the European Union, regulation 1408-71 co-ordinates basic schemes as well as supplementary schemes
when the State from which they derive requests. The European Union is also working to establish a body of rules
for supplementary funded company schemes considered as representing a second pillar. Within this perspective, the
big French supplementary schemes managed in pay-as-you-go (Agirc, Arrco, Ircantec), who come under the
regulation, do not belong to the second pillar properly speaking, but form a second stage of the first pillar. (See
the letter of the Observatoire des Retraites ‘Europe and retirement’ on the site www.observatoire-retraites org).
Depending on the method of calculating pension rights, most French schemes can be grouped according to three
overall models:
◆ The General Scheme and the aligned schemes (farm workers, shopkeepers and craftsmen) apply rules part way
between those of the special schemes and those of the supplementary schemes. As with the first, pension is calculated
as a percentage of salary in function of the number of years of membership with a maximum 37.5 years. However, as
with the supplementary schemes, this salary tends to reflect the whole of a career since it represents an average of the
18 best years of a career and, will represent in 2008, when a reform of 1993 fully enters into application, the average
of the 25 best years of a career.
◆ Supplementary schemes most often operate in applying the so-called ‘pension points’ technique. Each year, a
contributor buys points at a price systematically revised in function of the change in his or her occupational income
(hence the expression of a reference salary to fix the purchase price of a point). The points have a service value that
is also revised each year. This value plus the number of points acquired determines the amount of pension. The pension
will reflect the contributions paid, thus the whole of a career, and not merely the last salary.
◆ The pension of civil servants represents a certain percentage of the final salary in function of the number of years
of service within a limit of 37.5 years. This method of calculation corresponds perfectly to the full careers and regular
promotions of civil servants but is hardly applicable to the uncertain, mobile and riskier careers of employees of the
private sector or the self-employed. Bonuses, which may sometimes represent a substantial part of the salaries of civil
servants, are not subject to contributions and thus do not enter into calculation of pension. The majority of special
schemes follow this model.
2 Basic schemes
2.1.CONTRIBUTIONS
The contributions paid by employees and employers cover the major part of benefits. The remainder is financed by:
taxes and duties allocated for the purpose, transfers of compensation, State subsidies, investment yields and other
contributions assumed by third parties (the State or other Social Security schemes).
Gross contributions include employee and employer contributions as well as fictive contributions that are not state
contributions. The amount of contribution of schemes indicated in italic includes that of the pension branch and the
disability branch.
Gross contributions to basic schemes in 2000 (in million francs)
SOCIO-OCCUPATIONAL
CATEGORIES
Private sector schemes for salaried employees
Non farm workers
Farm workers
MSA
11,693
301,734
Civil servants & soldiers
199,984
State workers
FSPOEIE
2,933
Local authorities and hospital staff
CNRACL
63,042
Mines
CANSSM
512
Power utilities
IEG
17,390
French railways
SNCF
9,230
Paris transport
RATP
4,244
Sailors
ENIM
903
Notarial clerks and employees
CRPCEN
France3
BDF
1 franc = 0.15 euro
1 euro = 6.55957 francs
841
477
30 992
ORGANIC
9,016
Craftsmen
CANCAVA
7,888
CNAVPL
6,505
Lawyers
CNBF
518
Farmers
MSA
6,776
Clergy
CAMAVIC1
No occupational link
Old age minimum
289
0
SASV
0
639,902
TOTAL
JANUARY 2003
2,178
Industrialists & shopkeepers
Liberal professions
However, the following table will permit
conversion to euros:
295,483
Non salaried schemes
Statistics were originally gathered in
French francs and we have chosen to present them as such.
6
CNAVTS
Other schemes2
EURO TRANSITION
CONTRIBUTIONS
307,176
Special schemes for salaried employees
Banque de
E
SCHEMES
JANUARY 2003
1) Now called CAVIMAC.
2) These include individual schemes for national theatre employees, the pension scheme for
the national tobacco and match industry
(SEITA), various schemes of the Caisse des
Dêpots et Consignations, including the ones for
volunteer fire-fighters (RISP), the national printing works and several work accident benefit
schemes for Parisian local communities, the
special scheme of the Chamber of Commerce
and industry of Paris and the schemes of Parliamentary Assemblies.
3) Fictive contributions only.
Source:
Social Security accounts commission,
September 2001
7
The French system, the ‘three pillars’ and European law.
The organisation of pension systems varies widely from one country to another, precluding any simple classification.
The Swiss constitution provides for a pension system of three pillars: a basic scheme, an obligation for companies
to ensure a supplementary pension for their employees and special fiscal treatment for personal savings for retirement.
Such a system of three pillars is often used, notably by the Anglo-Saxons, who differ from the Swiss in setting off
and opposing an initial State pillar financed in pay-as-you-go, a second pillar of occupational funded pensions and
a third of personal savings.
Within the European Union, regulation 1408-71 co-ordinates basic schemes as well as supplementary schemes
when the State from which they derive requests. The European Union is also working to establish a body of rules
for supplementary funded company schemes considered as representing a second pillar. Within this perspective, the
big French supplementary schemes managed in pay-as-you-go (Agirc, Arrco, Ircantec), who come under the
regulation, do not belong to the second pillar properly speaking, but form a second stage of the first pillar. (See
the letter of the Observatoire des Retraites ‘Europe and retirement’ on the site www.observatoire-retraites org).
Depending on the method of calculating pension rights, most French schemes can be grouped according to three
overall models:
◆ The General Scheme and the aligned schemes (farm workers, shopkeepers and craftsmen) apply rules part way
between those of the special schemes and those of the supplementary schemes. As with the first, pension is calculated
as a percentage of salary in function of the number of years of membership with a maximum 37.5 years. However, as
with the supplementary schemes, this salary tends to reflect the whole of a career since it represents an average of the
18 best years of a career and, will represent in 2008, when a reform of 1993 fully enters into application, the average
of the 25 best years of a career.
◆ Supplementary schemes most often operate in applying the so-called ‘pension points’ technique. Each year, a
contributor buys points at a price systematically revised in function of the change in his or her occupational income
(hence the expression of a reference salary to fix the purchase price of a point). The points have a service value that
is also revised each year. This value plus the number of points acquired determines the amount of pension. The pension
will reflect the contributions paid, thus the whole of a career, and not merely the last salary.
◆ The pension of civil servants represents a certain percentage of the final salary in function of the number of years
of service within a limit of 37.5 years. This method of calculation corresponds perfectly to the full careers and regular
promotions of civil servants but is hardly applicable to the uncertain, mobile and riskier careers of employees of the
private sector or the self-employed. Bonuses, which may sometimes represent a substantial part of the salaries of civil
servants, are not subject to contributions and thus do not enter into calculation of pension. The majority of special
schemes follow this model.
2 Basic schemes
2.1.CONTRIBUTIONS
The contributions paid by employees and employers cover the major part of benefits. The remainder is financed by:
taxes and duties allocated for the purpose, transfers of compensation, State subsidies, investment yields and other
contributions assumed by third parties (the State or other Social Security schemes).
Gross contributions include employee and employer contributions as well as fictive contributions that are not state
contributions. The amount of contribution of schemes indicated in italic includes that of the pension branch and the
disability branch.
Gross contributions to basic schemes in 2000 (in million francs)
SOCIO-OCCUPATIONAL
CATEGORIES
Non farm workers
Farm workers
MSA
11,693
301,734
199,984
State workers
FSPOEIE
2,933
CNRACL
63,042
Mines
CANSSM
512
Power utilities
IEG
17,390
French railways
SNCF
9,230
Paris transport
RATP
4,244
Sailors
ENIM
903
CRPCEN
France3
BDF
1 franc = 0.15 euro
1 euro = 6.55957 francs
841
477
30 992
ORGANIC
9,016
Craftsmen
CANCAVA
7,888
CNAVPL
6,505
Lawyers
CNBF
518
Farmers
MSA
6,776
Clergy
CAMAVIC1
Old age minimum
289
0
SASV
0
639,902
TOTAL
JANUARY 2003
2,178
Liberal professions
However, the following table will permit
conversion to euros:
295,483
Statistics were originally gathered in
French francs and we have chosen to present them as such.
6
CNAVTS
Other schemes2
EURO TRANSITION
CONTRIBUTIONS
307,176
Special schemes for salaried employees
Banque de
E
SCHEMES
JANUARY 2003
3) Fictive contributions only.
Source:
Social Security accounts commission,
September 2001
7
Contribution rates for basic schemes of the private sector and the main special schemes in 2001
SCHEMES
EMPLOYEE
CONTRIBUTION
RATE
EMPLOYER
CONTRIBUTION
RATE
6.55% of salary
within limit of SSC*
8.20% of salary
and 1.60% of total
salary
2.2.BENEFITS
Old age benefits include contributory and non contributory pension benefits.
Basic schemes of the private sector
CNAVTS
(Social Security general schemes
for the salaried workers)
CANCAVA
ORGANIC
(National old-age,disability
and death insurance for tradesmen
and industrialists)
MSA (Farmers)
CNBF
CNAVPL
(National scheme
for the liberal professions)
Old age benefits paid by the basic schemes in 2000 (in million francs)
SOCIO-OCCUPATIONAL
CATEGORIES
16.35% of occupational
income above 8,404 francs
annually,
within limit of du SSC*
SCHEMES
Non farm workers
Farm workers
Basic contribution of 16.35%
of occupational income within limit of SSC*
+ a spouse contribution no matter
what the marital status, in proportion to income
or 2.5% if income < to 1/3 SSC
and 3.95% if 1/3 SSC< income < 100% of SSC
8.445% of salary capped at SSC*
and 1.29% of uncapped salary
Annual standard contribution
in function of occupational seniority
or a minimum contribution of 1,860 francs
after one year of activity and a maximum
contribution of 10,008 francs after
six years of seniority
397,665
CNAVTS
368,335
MSA
29,330
Special regimes for salaried employees
314,775
184,986
State workers
FSPOEIE
9,639
CNRACL
45,507
Mines3
CANSSM
512
Power utilities
IEG
17,467
French railways
SNCF
27,932
Paris transport
RATP
4,134
Sailors
Standard contribution for each of
the 12 occupational sectors
+ 1.4% proportional to declared income
Banque de France
ENIM
6,321
CRPCEN
2,696
BDF
1,684
Other schemes2
1,469
Main special schemes
25.10%
BENEFITS
90,430
ORGANIC
18,563
Craftsmen
CANCAVA
13,422
CNAVPL
3,568
CNRACL
(National scheme
for municipal employers)
7.85%
Military and civil servants
7.85%
State budget
Lawyers
CNBF
380
SNCF (French railways)
7.85%
28.44%
Farmers
MSA
53,022
Clergy
CAMAVIC1
1,475
Liberal professions
RATP (Paris transport)
7.85%
15.34%
IEG (Power utilities)
7.85%
Balancing endowment
Banque de France
7.85%
According to needs
*SSC = Social Security Ceiling
(179,400 francs yearly in 2001)
Source: Observatoire des Retraites - 2001
Old age minimum
2,795
SASV
2,795
805,665
TOTAL
3) Includes disability benefits.
Source:
Social Security accounts commission, 2001
We should notice that for some special schemes, employees’ contributions represent a very small part of the overall contributions. What is left is accounted as fictive employers’ contributions. For instance, only 17.4% of the contributions sum paid to the
civil servants scheme comes from the employees.
8
JANUARY 2003
JANUARY 2003
9
Contribution rates for basic schemes of the private sector and the main special schemes in 2001
SCHEMES
EMPLOYEE
CONTRIBUTION
RATE
EMPLOYER
CONTRIBUTION
RATE
6.55% of salary
8.20% of salary
and 1.60% of total
salary
2.2.BENEFITS
Old age benefits include contributory and non contributory pension benefits.
Basic schemes of the private sector
CNAVTS
(Social Security general schemes
for the salaried workers)
CANCAVA
ORGANIC
(National old-age,disability
and death insurance for tradesmen
and industrialists)
MSA (Farmers)
CNBF
CNAVPL
(National scheme
for the liberal professions)
Old age benefits paid by the basic schemes in 2000 (in million francs)
SOCIO-OCCUPATIONAL
CATEGORIES
16.35% of occupational
income above 8,404 francs
annually,
within limit of du SSC*
SCHEMES
Non farm workers
Farm workers
Basic contribution of 16.35%
of occupational income within limit of SSC*
+ a spouse contribution no matter
what the marital status, in proportion to income
or 2.5% if income < to 1/3 SSC
and 3.95% if 1/3 SSC< income < 100% of SSC
8.445% of salary capped at SSC*
and 1.29% of uncapped salary
Annual standard contribution
in function of occupational seniority
or a minimum contribution of 1,860 francs
after one year of activity and a maximum
contribution of 10,008 francs after
six years of seniority
397,665
CNAVTS
368,335
MSA
29,330
Special regimes for salaried employees
314,775
184,986
State workers
FSPOEIE
9,639
CNRACL
45,507
Mines3
CANSSM
512
Power utilities
IEG
17,467
French railways
SNCF
27,932
Paris transport
RATP
4,134
Sailors
Standard contribution for each of
the 12 occupational sectors
+ 1.4% proportional to declared income
Banque de France
ENIM
6,321
CRPCEN
2,696
BDF
1,684
Other schemes2
1,469
Main special schemes
25.10%
BENEFITS
90,430
ORGANIC
18,563
Craftsmen
CANCAVA
13,422
CNAVPL
3,568
CNRACL
(National scheme
for municipal employers)
7.85%
Military and civil servants
7.85%
State budget
Lawyers
CNBF
380
7.85%
28.44%
Farmers
MSA
53,022
Clergy
CAMAVIC1
1,475
Liberal professions
7.85%
15.34%
7.85%
Balancing endowment
Banque de France
7.85%
According to needs
(179,400 francs yearly in 2001)
Source: Observatoire des Retraites - 2001
Old age minimum
2,795
SASV
2,795
805,665
TOTAL
3) Includes disability benefits.
Source:
Social Security accounts commission, 2001
We should notice that for some special schemes, employees’ contributions represent a very small part of the overall contributions. What is left is accounted as fictive employers’ contributions. For instance, only 17.4% of the contributions sum paid to the
civil servants scheme comes from the employees.
8
JANUARY 2003
JANUARY 2003
9
2.3.2. Compensation
2.3 .E Q UIL I BRI UM OF THE BA S IC S C HE M E S
Since 1974, arrangements for financial solidarity among schemes allows for help for schemes facing excessive
demographic and financial charges.
The demographic situation of schemes depends on the number of contributors in comparison to the number of
beneficiaries.
The demographic dependency rate can be defined as the relation between the number of contributors and the
number of beneficiaries of a scheme. For example, a demographic dependency rate of 1.7 for the CNAVTS scheme in
2000 means that there are 1.7 contributors for each beneficiary.
There exist three types of transfers among the various pension schemes:
◆ Compensation among employee schemes (employee schemes of the private and public sector). Such compensation
is based on demographic charges and the contributory capacities of the schemes. Schemes with a strong ratio of total
gross salaries subject to contribution to the number of pensioners compensate schemes with a weaker ratio.
◆ Compensation among salaried and non-salaried schemes or demographic compensation. Such compensation is solely
demographic and does not take into account the contributive faculties of schemes. Only the contributor/beneficiary ratio
counts. Consequently, schemes with a favourable demographic structure (i.e. a number of contributors higher than necessary to ensure the scheme’s equilibrium) compensate those with an unfavourable demographic ratio.
◆ Specific compensation is the equivalent of compensation among employee schemes for the special schemes. The
effective transfers among such schemes, limited to 38% since 1993, were capped at 34% in 2000, and at 30% in 2001.
Demographic dependency rates in 2000
BASIC SCHEME
CNAVTS (Social Security general
scheme for salaried workers)
NUMBER
OF CONTRIBUTORS
NUMBER
OF PENSIONERS
RATIO CONTRIBUTOR/
PENSIONER
15,200,000
9,000,000 *
1.7
Civil servants
2,500,000
1,600,000
1.6
CNRACL (Municipal employees)
1,600,000
560,000
2.9
178,000
263,000
0.7
CNAVPL (Liberal professions) (basic)
444,000
142,700
3.1
CANCAVA (Craftsmen) (basic)
494,000
600,000
0.8
MSA (Farm workers)
697,000
2,200,000
0.3
MSA (Farm sector employees)
665,000
2,035,000
0.3
152,300
115,700
1.3
40,550
33,100
1.2
643,400
933,078
0.7
ORGANIC
(Shopkeepers & industrialists)
The amount of compensation transfers for 1999 (in million francs)
COMPENSATION AMONG SCHEMES FOR SALARIED EMPLOYEES
SCHEME
PAID
CNAVTS (Social Security general scheme for salaried workers)
RECEIVED
2,836.9
MSA (Farm workers)
14,931
Civil servants
7,865.3
Military
282.1
State workers
168
7,145.5
CANSSM (Mines)
2,142.9
444.2
100.9
ENIM (Sailors)
362.3
Source: Pension orientation council, July 2001
CRPCEN (Notarial clerks and employees)
* Direct rights only
Banque de France
458.1
84.8
8.6
18,415.3
TOTAL
18,415.3
Source: Pension orientation council, December 2001
10
JANUARY 2003
JANUARY 2003
11
2.3.2. Compensation
2.3 .E Q UIL I BRI UM OF THE BA S IC S C HE M E S
Since 1974, arrangements for financial solidarity among schemes allows for help for schemes facing excessive
demographic and financial charges.
The demographic situation of schemes depends on the number of contributors in comparison to the number of
beneficiaries.
The demographic dependency rate can be defined as the relation between the number of contributors and the
number of beneficiaries of a scheme. For example, a demographic dependency rate of 1.7 for the CNAVTS scheme in
2000 means that there are 1.7 contributors for each beneficiary.
There exist three types of transfers among the various pension schemes:
◆ Compensation among employee schemes (employee schemes of the private and public sector). Such compensation
is based on demographic charges and the contributory capacities of the schemes. Schemes with a strong ratio of total
gross salaries subject to contribution to the number of pensioners compensate schemes with a weaker ratio.
◆ Compensation among salaried and non-salaried schemes or demographic compensation. Such compensation is solely
demographic and does not take into account the contributive faculties of schemes. Only the contributor/beneficiary ratio
counts. Consequently, schemes with a favourable demographic structure (i.e. a number of contributors higher than necessary to ensure the scheme’s equilibrium) compensate those with an unfavourable demographic ratio.
◆ Specific compensation is the equivalent of compensation among employee schemes for the special schemes. The
effective transfers among such schemes, limited to 38% since 1993, were capped at 34% in 2000, and at 30% in 2001.
Demographic dependency rates in 2000
BASIC SCHEME
CNAVTS (Social Security general
scheme for salaried workers)
NUMBER
OF CONTRIBUTORS
NUMBER
OF PENSIONERS
RATIO CONTRIBUTOR/
PENSIONER
15,200,000
9,000,000 *
1.7
Civil servants
2,500,000
1,600,000
1.6
1,600,000
560,000
2.9
178,000
263,000
0.7
CNAVPL (Liberal professions) (basic)
444,000
142,700
3.1
CANCAVA (Craftsmen) (basic)
494,000
600,000
0.8
MSA (Farm workers)
697,000
2,200,000
0.3
MSA (Farm sector employees)
665,000
2,035,000
0.3
152,300
115,700
1.3
40,550
33,100
1.2
643,400
933,078
0.7
ORGANIC
(Shopkeepers & industrialists)
The amount of compensation transfers for 1999 (in million francs)
COMPENSATION AMONG SCHEMES FOR SALARIED EMPLOYEES
SCHEME
PAID
RECEIVED
2,836.9
MSA (Farm workers)
14,931
Civil servants
7,865.3
Military
282.1
State workers
168
7,145.5
CANSSM (Mines)
2,142.9
444.2
100.9
ENIM (Sailors)
362.3
* Direct rights only
Banque de France
458.1
84.8
8.6
18,415.3
TOTAL
18,415.3
10
JANUARY 2003
JANUARY 2003
11
2.4.RESERVE FUND
DEMOGRAPHIC COMPENSATION BETWEEN SALARIED
AND NON-SALARIED EMPLOYEES
SCHEME
MSA (Farm workers)
Civil servants
PAID
22,457.6
931.5
490.9
FSPOEIE (State workers)
113.4
CANSSM (Mines)
2,589.8
40.6
316.9
79
ENIM (Sailors)
36.5
Established by the Social Security Finance Act of 1999, the reserve fund must accumulate 1 trillion francs by 2020 to
contribute to the equilibrium, over the period 2020-2040, of the basic schemes that have taken measures to adapt, which
is the case of the General Regime (CNAVTS) and the aligned schemes (farm workers, shopkeepers and craftsmen). This
is a smoothing fund whose management, temporarily ensured by the Old Age Solidarity Fund (FSV), is entrusted, by a
law of July 17, 2001, to a public administrative body called the ‘Pension Reserve Fund’. Governed by a board of directors
and a supervisory board, with administrative management by the Caisse des Dépôts et Consignations, this establishment
will award financial management of reserves by tender to establishments specialised in asset management
3,701.8
Military
RECEIVED
292.6
67.6
Banque de France
29.6
MSA (Farmers)
Payments to the Reserve Fund (in million francs)
26,113.9
RECEIPTS
ORGANIC (Shopkeepers and industrialists)
4,802.6
CSSS (Company Social Solidarity Contribution)
CANCAVA (Craftsmen)
1,967.2
Old Age Solidarity Fund surplus
CNAVPL (Liberal professions)
CNBF (Lawyers)
2,572.1
288.2
CAVIMAC (Clergy)
TOTAL
1,124.4
34,008.1
34,008.1
COMPENSATION AMONG SPECIAL SCHEMES
SCHEME
Civil servants
PAID
13,307.4
RECEIVED
Military
4,737.7
1,427.3
10,076.6
CANSSM (Mines)
9,975.2
4,370.4
109.9
ENIM (Sailors)
2,086.2
506.9
2000
2001
2002
1,879
0
1,999
CNAVTS surplus
5,031
3,168
0
65% levy on 2% of capital gains
5,845
6,296
6,595
Yields on sales of caisses d’epargne holdings
4,708
4,707
4,707
Payments from the Caisse des Depôts et Consignations
2,998
0
0
9,246
2 249
8.2% contribution on the share francs
of the employer subscription to the long term employee
savings plan higher than 15,000 francs (PPESV)
n.a.
n.a.
Unclaimed worker bonuses and participations
n.a.
n.a.
57% of profits on sales of mobile telephone permits (UMTS)
Investment yields
9.8
217
899
1,876
TOTAL RECEIPTS
2,009
18,799
26,195
15,427
2.62
1.31
1.31
EXPENDITURES
Diverse
Taxes
1.31
22
90
TOTAL EXPENDITURES
1.31
25
91
1.31
ANNUAL RESULT
2,008
18,775
26,104
15,426
TOTAL AS OF DECEMBER 31 YEARLY
2,008
20,783
46,887
62,313
343.7
Banque de France
53.8
SEITA (Employees of companies in the tobacco industry)
234.3
CAMR (Railway workers)
552.3
TOTAL
1999
23,890.8
Source: Social Security accounts commission, 2001
Estimates for 2001 and 2002, figures rounded-off
n.a.: not available
23,890.8
Final transfers correspond to the balance of transfers for the three compensations for each scheme. In 1999, the sum of
transfers for demographic compensation and compensation among salaried employee schemes represented 52.4 billion francs
and, for specific compensation, 23.8 billion francs.
12
JANUARY 2003
JANUARY 2003
13
2.4.RESERVE FUND
DEMOGRAPHIC COMPENSATION BETWEEN SALARIED
AND NON-SALARIED EMPLOYEES
SCHEME
MSA (Farm workers)
Civil servants
PAID
22,457.6
931.5
490.9
113.4
CANSSM (Mines)
2,589.8
40.6
316.9
79
ENIM (Sailors)
36.5
Established by the Social Security Finance Act of 1999, the reserve fund must accumulate 1 trillion francs by 2020 to
contribute to the equilibrium, over the period 2020-2040, of the basic schemes that have taken measures to adapt, which
is the case of the General Regime (CNAVTS) and the aligned schemes (farm workers, shopkeepers and craftsmen). This
is a smoothing fund whose management, temporarily ensured by the Old Age Solidarity Fund (FSV), is entrusted, by a
law of July 17, 2001, to a public administrative body called the ‘Pension Reserve Fund’. Governed by a board of directors
and a supervisory board, with administrative management by the Caisse des Dépôts et Consignations, this establishment
will award financial management of reserves by tender to establishments specialised in asset management
3,701.8
Military
RECEIVED
292.6
67.6
Banque de France
29.6
MSA (Farmers)
Payments to the Reserve Fund (in million francs)
26,113.9
RECEIPTS
4,802.6
CANCAVA (Craftsmen)
1,967.2
Old Age Solidarity Fund surplus
CNBF (Lawyers)
2,572.1
288.2
CAVIMAC (Clergy)
TOTAL
1,124.4
34,008.1
34,008.1
COMPENSATION AMONG SPECIAL SCHEMES
SCHEME
Civil servants
PAID
13,307.4
RECEIVED
Military
4,737.7
1,427.3
10,076.6
CANSSM (Mines)
9,975.2
4,370.4
109.9
ENIM (Sailors)
2,086.2
506.9
2000
2001
2002
1,879
0
1,999
CNAVTS surplus
5,031
3,168
0
65% levy on 2% of capital gains
5,845
6,296
6,595
Yields on sales of caisses d’epargne holdings
4,708
4,707
4,707
Payments from the Caisse des Depôts et Consignations
2,998
0
0
9,246
2 249
8.2% contribution on the share francs
of the employer subscription to the long term employee
savings plan higher than 15,000 francs (PPESV)
n.a.
n.a.
Unclaimed worker bonuses and participations
n.a.
n.a.
57% of profits on sales of mobile telephone permits (UMTS)
Investment yields
9.8
217
899
1,876
TOTAL RECEIPTS
2,009
18,799
26,195
15,427
2.62
1.31
1.31
EXPENDITURES
Diverse
Taxes
1.31
22
90
TOTAL EXPENDITURES
1.31
25
91
1.31
ANNUAL RESULT
2,008
18,775
26,104
15,426
TOTAL AS OF DECEMBER 31 YEARLY
2,008
20,783
46,887
62,313
343.7
Banque de France
53.8
SEITA (Employees of companies in the tobacco industry)
234.3
CAMR (Railway workers)
552.3
TOTAL
1999
23,890.8
Source: Social Security accounts commission, 2001
Estimates for 2001 and 2002, figures rounded-off
n.a.: not available
23,890.8
Final transfers correspond to the balance of transfers for the three compensations for each scheme. In 1999, the sum of
transfers for demographic compensation and compensation among salaried employee schemes represented 52.4 billion francs
and, for specific compensation, 23.8 billion francs.
12
JANUARY 2003
JANUARY 2003
13
3 Supplementary schemes
Forecast for development of a reserve fund (in billion francs)
Supposing a return to full employment, with a gradual decrease in the unemployment rate to 4.5%, and a net return
on investments of 4% annually.
RESOURCES
TOTAL OF
ANNUAL FLOWS
IN BILLION
FRANCS
CNAVTS surplus
and Old Age Solidarity Funds surpluses
2% deduction on investment income
Yields on partnership shares of the Caisse d’epargne
and payments from the Caisse des Dépôts et Consignations
100
400
SUB-TOTAL OF ESTIMATES
670
330
Investment returns (4% annually)
ESTIMATED TOTAL FOR 2020
3.1.CONTRIBUTIONS
150
20
1,000
Gross contributions to supplementary schemes in 2000 (in million francs)
Source: Briefing of the Prime Minister
March 21, 2000
Salaried employee schemes
150,000
ARRCO
AGIRC
120,000
IRCANTEC
CRPNPAC
90,000
159,743
60,000
77,506
30,000
0
Salaried employees
(executives
and non executives)
Salaried employees
(executives)
9,394
1,686
IRCANTEC
CRPNPAC
Source: Social Security accounts commission,
September 2001
Non-salaried schemes
10,000
8,000
Supplementary schemes for
craftsmen
6,000
Supplementary occupational
sections of the liberal professions
(12 in number)
10,116
Supplementary lawyers
4,000
2,000
3,179
492
0
Craftsmen
14
JANUARY 2003
Liberal professions
JANUARY 2003
September 2001
Lawyers
15
3 Supplementary schemes
Forecast for development of a reserve fund (in billion francs)
Supposing a return to full employment, with a gradual decrease in the unemployment rate to 4.5%, and a net return
on investments of 4% annually.
RESOURCES
TOTAL OF
ANNUAL FLOWS
IN BILLION
FRANCS
CNAVTS surplus
and Old Age Solidarity Funds surpluses
2% deduction on investment income
Yields on partnership shares of the Caisse d’epargne
and payments from the Caisse des Dépôts et Consignations
100
400
SUB-TOTAL OF ESTIMATES
670
330
Investment returns (4% annually)
ESTIMATED TOTAL FOR 2020
3.1.CONTRIBUTIONS
150
20
1,000
Gross contributions to supplementary schemes in 2000 (in million francs)
Source: Briefing of the Prime Minister
March 21, 2000
Salaried employee schemes
150,000
ARRCO
AGIRC
120,000
IRCANTEC
CRPNPAC
90,000
159,743
60,000
77,506
30,000
0
Salaried employees
(executives
and non executives)
Salaried employees
(executives)
9,394
1,686
IRCANTEC
CRPNPAC
September 2001
10,000
8,000
Supplementary schemes for
craftsmen
6,000
Supplementary occupational
sections of the liberal professions
(12 in number)
10,116
Supplementary lawyers
4,000
2,000
3,179
492
0
Craftsmen
14
JANUARY 2003
Liberal professions
JANUARY 2003
September 2001
Lawyers
15
Contribution rates for supplementary schemes in 2001
3 . 2 . B EN EF I T S
SUPPLEMENTARY
SCHEMES
EMPLOYEE
CONTRIBUTION RATE
EMPLOYER
CONTRIBUTION RATE
ARRCO
(Supplementary pension
for workers)
For salary bracket at SSC*
2.4% with surcharge
of 125% or effective rate of 3%
and
For salary bracket
of 1 x SSC to 3 x SSC,
or 179,400 f to 538,200 f,
4% with a surcharge of 125%
or effective rate of 5%
For salary bracket capped at SSC,
3.6% with a surcharge
of 125% or effective rate of 4.5%
and
For salary bracket
or of 179,400 f to 538,200 f,
or an effective rate of 7.5%
For salary bracket
of 1 x SSC to 8 x SSC
179,400 f to 1,435,200 f yearly,
6% with surcharge of 125%
or effective rate of 7.5%
and
For salary bracket capped at 8 x SSC
or 1,435,200 f yearly,
exceptional temporary contribution
of 0.13%
For salary bracket
179,400 f to 1,435,200 f yearly,
and
of 0.22%
1.8% of annual salary capped at SSC with
surcharge of 125% or effective rate of 2.25%
and
4.76% of salaries from 1 to 8 x SSC
or 179,400 f to 1,435,200 f yearly, with
a surcharge of 125% or effective rate of 5.95%
and
AGIRC
for executives)
IRCANTEC
for untenured civil servants)
CANCAVA
for craftmen)
6% of occupational income over 8,404 f yearly
with a ceiling of 4 x SSC (717,600 f annually)
CNAVPL
for liberal professions)
The contribution base and rate vary according
to occupational sector
CNBF
for lawyers)
For the income bracket of 1 to 189,900 f per year
3% with a discount rate of 82%, or an effective rate of 2.46%
and
For the income bracket of 189,901 to 759,600 f per year
Source: Observatoire des Retraites
Old age benefits of supplementary schemes in 2000 (in million francs)
SOCIO-OCCUPATIONAL
CATEGORIES
SCHEMES
BENEFITS
Employee schemes
273,040
Executive and non-executive employees
ARRCO
174,483
Executive employees
AGIRC
89,249
Untenured civil servants
IRCANTEC
7,209
Civil aviation crews
CRPNPAC
2,099
12,041
Craftsmen
CANCAVA
supplementary
3,208
Liberal professions
Supplementary
occupational
sections
8,459
Lawyers
CNBF
supplementary
374
285,081
TOTAL
2001
Shopkeepers do not have a mandatory supplementary scheme. They may benefit through ORGANIC from an optional
supplementary scheme, known as ORGANIC Complémentaire. It will become compulsory by January 1st 2004.
This scheme, which is funded, is only open to members of the ORGANIC basic scheme. It is possible to choose a level of
contribution in relation to professional income.
Each branch of the professions (there are 12) has its own method of financing. Certain of these schemes operate by categories
of contribution while others cumulate a standard contribution and a proportional one. Lastly, the contribution base varies widely
from one scheme to another and corresponds to the specifics of each profession. For a detailed description of each scheme, it is
advisable to check the CNAVPL site which serves to link those supplementary schemes with sites: www.cnavpl.fr
The CNAVPL publishes an annual guide to the old age insurance of the professions. The supplementary schemes are described
in detail.
16
JANUARY 2003
JANUARY 2003
17
Contribution rates for supplementary schemes in 2001
3 . 2 . B EN EF I T S
SUPPLEMENTARY
SCHEMES
EMPLOYEE
CONTRIBUTION RATE
EMPLOYER
CONTRIBUTION RATE
ARRCO
for workers)
For salary bracket at SSC*
2.4% with surcharge
of 125% or effective rate of 3%
and
For salary bracket
or 179,400 f to 538,200 f,
or effective rate of 5%
For salary bracket capped at SSC,
3.6% with a surcharge
of 125% or effective rate of 4.5%
and
For salary bracket
or of 179,400 f to 538,200 f,
or an effective rate of 7.5%
For salary bracket
179,400 f to 1,435,200 f yearly,
and
of 0.13%
For salary bracket
179,400 f to 1,435,200 f yearly,
and
of 0.22%
and
and
AGIRC
for executives)
IRCANTEC
CANCAVA
for craftmen)
6% of occupational income over 8,404 f yearly
with a ceiling of 4 x SSC (717,600 f annually)
CNAVPL
for liberal professions)
The contribution base and rate vary according
to occupational sector
CNBF
for lawyers)
For the income bracket of 1 to 189,900 f per year
and
For the income bracket of 189,901 to 759,600 f per year
Old age benefits of supplementary schemes in 2000 (in million francs)
SOCIO-OCCUPATIONAL
CATEGORIES
SCHEMES
BENEFITS
Employee schemes
273,040
Executive and non-executive employees
ARRCO
174,483
Executive employees
AGIRC
89,249
Untenured civil servants
IRCANTEC
7,209
Civil aviation crews
CRPNPAC
2,099
12,041
Craftsmen
CANCAVA
supplementary
3,208
Liberal professions
Supplementary
occupational
sections
8,459
Lawyers
CNBF
supplementary
374
285,081
TOTAL
2001
Shopkeepers do not have a mandatory supplementary scheme. They may benefit through ORGANIC from an optional
supplementary scheme, known as ORGANIC Complémentaire. It will become compulsory by January 1st 2004.
This scheme, which is funded, is only open to members of the ORGANIC basic scheme. It is possible to choose a level of
contribution in relation to professional income.
Each branch of the professions (there are 12) has its own method of financing. Certain of these schemes operate by categories
of contribution while others cumulate a standard contribution and a proportional one. Lastly, the contribution base varies widely
from one scheme to another and corresponds to the specifics of each profession. For a detailed description of each scheme, it is
advisable to check the CNAVPL site which serves to link those supplementary schemes with sites: www.cnavpl.fr
The CNAVPL publishes an annual guide to the old age insurance of the professions. The supplementary schemes are described
in detail.
16
JANUARY 2003
JANUARY 2003
17
3 . 3 .E QUILIBRI UM OF SUPPLEM E NTAR Y S C HE M E S
3.4.ASSETS
The survey on the reserves of French supplementary schemes, conducted by the Observatoire des Retraites, covers
eleven supplementary schemes, for the most part mandatory and managed in pay-as-you-go: i.e. ARRCO, AGIRC,
CANCAVA (craftsmen), the supplementary schemes of the liberal professions, CRPNPAC (air navigation personnel), CNBF
(lawyers), CRACMA (farmers), CCPMA (farm workers), IRCANTEC, CGRPCE (savings institutions).
The 1998 and 1999 results are lower than those of previous surveys (cf. - Observatoire des Retraites - Statistics
Letter n°2) because of modifications in the statistical treatment of the study. Certain funds raised for the short term
were not taken into account in the study. This was entirely an accounting phenomenon and does not conceal a constant
increase in the level of reserves.
An agreement of April 25, 1996 established financial solidarity between AGIRC and ARRCO aimed at providing
partial compensation for the consequences of drift in the Social Security ceiling that produced an increase in the ARRCO
contribution base to the detriment of the AGIRC base.
ARRCO contributed to the financial equilibrium of AGIRC with a transfer of 2.3 billion francs in 1999 and 2.98 billion
francs in 2000.
The amount of financial assets of supplementary schemes (in million francs)
3.3.2. Demographic Dependency rates
of some supplementary schemes in 2000
250,000
200,000
SUPPLEMENTARY
SCHEMES
CONTRIBUTORS
PENSIONERS
CONTRIBUTOR/
PENSIONER RATIO
ARRCO
(Supplementary scheme
for workers)
15,000,000
8,700,000*
1.7
AGIRC
for executives)
3,200,000
IRCANTEC
2,350,000
150,000
211,515*
226,959
262,632
100,000
1,310,000*
2.4
*Using previous accounting rules,
the result was 321,649 million francs.
50,000
1,318,000
1.8
0
1997
1998
1999
* direct rights
18
JANUARY 2003
JANUARY 2003
19
3 . 3 .E QUILIBRI UM OF SUPPLEM E NTAR Y S C HE M E S
3.4.ASSETS
The survey on the reserves of French supplementary schemes, conducted by the Observatoire des Retraites, covers
eleven supplementary schemes, for the most part mandatory and managed in pay-as-you-go: i.e. ARRCO, AGIRC,
CANCAVA (craftsmen), the supplementary schemes of the liberal professions, CRPNPAC (air navigation personnel), CNBF
(lawyers), CRACMA (farmers), CCPMA (farm workers), IRCANTEC, CGRPCE (savings institutions).
The 1998 and 1999 results are lower than those of previous surveys (cf. - Observatoire des Retraites - Statistics
Letter n°2) because of modifications in the statistical treatment of the study. Certain funds raised for the short term
were not taken into account in the study. This was entirely an accounting phenomenon and does not conceal a constant
increase in the level of reserves.
An agreement of April 25, 1996 established financial solidarity between AGIRC and ARRCO aimed at providing
partial compensation for the consequences of drift in the Social Security ceiling that produced an increase in the ARRCO
contribution base to the detriment of the AGIRC base.
ARRCO contributed to the financial equilibrium of AGIRC with a transfer of 2.3 billion francs in 1999 and 2.98 billion
francs in 2000.
The amount of financial assets of supplementary schemes (in million francs)
3.3.2. Demographic Dependency rates
of some supplementary schemes in 2000
250,000
200,000
SUPPLEMENTARY
SCHEMES
CONTRIBUTORS
PENSIONERS
CONTRIBUTOR/
PENSIONER RATIO
ARRCO
for workers)
15,000,000
8,700,000*
1.7
AGIRC
for executives)
3,200,000
IRCANTEC
2,350,000
150,000
211,515*
226,959
262,632
100,000
1,310,000*
2.4
*Using previous accounting rules,
the result was 321,649 million francs.
50,000
1,318,000
1.8
0
1997
1998
1999
* direct rights
18
JANUARY 2003
JANUARY 2003
19
The amount and breakdown of the financial assets of supplementary pension schemes in 1998 and 1999
(in million francs)
Allocation of reserve assets in terms of market value
FINANCIAL
ASSETS
RESERVES
IN 1999
SHARES
Reserves in 1998
6,170
RESERVES
IN 1998
Total
49,779
74,482
France
France
45,111
66,371
Foreign
Foreign
4,668
8,111
Total
138,458
135,780
France
136,956
132,346
Foreign
1,502
3,434
Total
23,528
20,355
France
23,528
20,355
0
0
FIXED INCOME
220,789
REAL ESTATE
Foreign
SHORT TERM INVESTMENTS
Reserves in 1999
11,545
Total
11,076
29,203
France
11,076
29,203
Foreign
0
0
OTHER
France
Total
4,118
2,812
Foreign
France
4,118
2,812
Foreign
0
0
226,959
262,632
TOTAL
251,087
20
JANUARY 2003
In 1998, the reserves of supplementary pension schemes were 227 billion francs, of which 221 billion were allocated to
French assets. These were mainly fixed income assets of 138 billion francs and shares representing nearly 50 billion francs.
In 1999, the reserves stood at more than 262 billion francs. Although fixed income assets were still the majority, shares were
in sharp increase (+50%).
JANUARY 2003
21
The amount and breakdown of the financial assets of supplementary pension schemes in 1998 and 1999
(in million francs)
FINANCIAL
ASSETS
RESERVES
IN 1999
SHARES
Reserves in 1998
6,170
RESERVES
IN 1998
Total
49,779
74,482
France
France
45,111
66,371
Foreign
Foreign
4,668
8,111
Total
138,458
135,780
France
136,956
132,346
Foreign
1,502
3,434
Total
23,528
20,355
France
23,528
20,355
0
0
FIXED INCOME
220,789
REAL ESTATE
Foreign
SHORT TERM INVESTMENTS
Reserves in 1999
11,545
Total
11,076
29,203
France
11,076
29,203
Foreign
0
0
OTHER
France
Total
4,118
2,812
Foreign
France
4,118
2,812
Foreign
0
0
226,959
262,632
TOTAL
251,087
20
JANUARY 2003
In 1998, the reserves of supplementary pension schemes were 227 billion francs, of which 221 billion were allocated to
French assets. These were mainly fixed income assets of 138 billion francs and shares representing nearly 50 billion francs.
In 1999, the reserves stood at more than 262 billion francs. Although fixed income assets were still the majority, shares were
in sharp increase (+50%).
JANUARY 2003
21
4
Technical balance in terms of Gross Domestic Product.
The technical balance of a scheme is the difference between what it takes in (contributions) and what it pays out
(benefits). If this is negative, it means that a scheme is in need of financing. If this is positive, it means that a scheme
possesses the capacity to finance. When the technical balance is expressed in percentage of Gross Domestic Product we
have an idea of the capacity or need for financing of a particular scheme in GDP. It should be noted that the balance
includes clearing operations. The figures expressed thus reflect the need or capacity for financing in terms of GDP of a
scheme after clearing.
The Forecasts of the Pension orientation
council up to 2040
The demographic ratio:
The demographic ratio shown below is called the adjusted demographic ratio. It represents the ratio of active contributors
to a scheme and the number of direct beneficiaries plus half of the number of survivor and orphans pensions.
Annual technical balance + clearing in percentage of GDP
not including management fees, subsidies, taxes, implicit supplementary contributions and contributions for old age insurance
for parents in geriatric homes (AVPF).
Demographic ratios of the main pension schemes
SCHEME
2000
2020
2040
CNAVTS H1 (Social Security general scheme)
- 0.2
- 0.7
- 1.5
0.2
- 0.2
- 0.9
- 1.9
1.4
0.9
MSA (Farm employees)
0
0
0
1.5
1.4
1
AGIRC (Executives)
0
- 0.1
- 0.1
1
0.8
0.6
0.3
ARRCO (Workers of the private sector)
0.3
0
- 0.5
1.4
1.2
1.1
1
0.9
IRCANTEC (Public sector employees)
0
0
- 0.1
2.9
2.5
2
1.6
1.3
0.9
Civil servants
- 0.2
- 1.1
- 1.5
0.7
0.7
0.7
0.8
0.8
0.8
2000
2005
2010
2015
2020
2040
CNAVTS (Social Security general scheme)
1.7
1.7
1.6
1.4
1.3
1
0.3
0.3
0.3
0.3
0.2
AGIRC (Executives)
2.1
2
1.8
1.5
1.7
1.8
1.8
IRCANTEC (Untenured civil servants)
1.6
1.3
Civil servants
1.6
SCHEME
0
- 0.4
- 0.7
- 0.2
- 0.1
- 0.1
CANCAVA (Craftsmen)
0.8
0.8
0.7
0.6
0.5
0.5
3.1
2.8
2.3
1.7
1.3
0.9
0
- 0,1
- 0.1
MSA (Farmers)
0.3
0.3
0.3
0.3
0.3
0.4
0
0
0
Other basic schemes*
0.6
0.6
0.6
0.6
0.6
0.7
CANCAVA (Craftsmen)
0
0
0
*Power utilities, Paris transport, Tradesmen and industrialists, Mines, State workers, Sailors, Banque de France, CRPCEN, Clergy
0
0
0
Source: Pension orientation council forecasts, June 2001
MSA (Farmers)
- 0.2
- 0.1
- 0.1
- 0.2
- 0.2
- 0.2
*
3.5
AGIRC
3.1
Source: Pension orientation council forecasts, July 2001
IRCANTEC
3.0
2.8
2.9
Public sector
2.5
2.1
2.0
1.7
1.5
Mines, State workers, Sailors, Banque de France, Notarial clerks, Clergy
1.7
1.6
1.6
1.0
2.3
2.5
2
1.8
1.8
1.7
1.4
CNRACL
2
1.8
1.6
1.2
1.3
1.7
1.6
1.5 1.5
1.4
1.1
CNAVPL
1.4 1.4
1.3 1.3
1
1
0.8
0.5
0.6
1.3
CNAVTS
1 1 0.9
0.9
0.9
0.9
0.3
0
2000
2005
2010
2015
The projections carried out for the CNAVTS are based on two alternative hypotheses for development of an average pension
(H1 and H2) because of the problems involved in predicting the amount of future pension linked to the method of calculating the
pension of the Basic Scheme.
2020
ARRCO
Source: Pension orientation council forecasts,
June 2001
2040
The forecasts of the Pension Orientation Council reveal an overall deterioration of the demographic equilibrium of schemes. Only
regimes where the erosion is already considerable (Railways, farmers) can expect no further deterioration.
22
JANUARY 2003
JANUARY 2003
23
4
Technical balance in terms of Gross Domestic Product.
The technical balance of a scheme is the difference between what it takes in (contributions) and what it pays out
(benefits). If this is negative, it means that a scheme is in need of financing. If this is positive, it means that a scheme
possesses the capacity to finance. When the technical balance is expressed in percentage of Gross Domestic Product we
have an idea of the capacity or need for financing of a particular scheme in GDP. It should be noted that the balance
includes clearing operations. The figures expressed thus reflect the need or capacity for financing in terms of GDP of a
scheme after clearing.
The Forecasts of the Pension orientation
council up to 2040
The demographic ratio:
The demographic ratio shown below is called the adjusted demographic ratio. It represents the ratio of active contributors
to a scheme and the number of direct beneficiaries plus half of the number of survivor and orphans pensions.
not including management fees, subsidies, taxes, implicit supplementary contributions and contributions for old age insurance
for parents in geriatric homes (AVPF).
SCHEME
2000
2020
2040
- 0.2
- 0.7
- 1.5
0.2
- 0.2
- 0.9
- 1.9
1.4
0.9
0
0
0
1.5
1.4
1
AGIRC (Executives)
0
- 0.1
- 0.1
1
0.8
0.6
0.3
0.3
0
- 0.5
1.4
1.2
1.1
1
0.9
IRCANTEC (Public sector employees)
0
0
- 0.1
2.9
2.5
2
1.6
1.3
0.9
Civil servants
- 0.2
- 1.1
- 1.5
0.7
0.7
0.7
0.8
0.8
0.8
2000
2005
2010
2015
2020
2040
1.7
1.7
1.6
1.4
1.3
1
0.3
0.3
0.3
0.3
0.2
AGIRC (Executives)
2.1
2
1.8
1.5
1.7
1.8
1.8
IRCANTEC (Untenured civil servants)
1.6
1.3
Civil servants
1.6
SCHEME
0
- 0.4
- 0.7
- 0.2
- 0.1
- 0.1
CANCAVA (Craftsmen)
0.8
0.8
0.7
0.6
0.5
0.5
3.1
2.8
2.3
1.7
1.3
0.9
0
- 0,1
- 0.1
MSA (Farmers)
0.3
0.3
0.3
0.3
0.3
0.4
0
0
0
0.6
0.6
0.6
0.6
0.6
0.7
CANCAVA (Craftsmen)
0
0
0
*Power utilities, Paris transport, Tradesmen and industrialists, Mines, State workers, Sailors, Banque de France, CRPCEN, Clergy
0
0
0
Source: Pension orientation council forecasts, June 2001
MSA (Farmers)
- 0.2
- 0.1
- 0.1
- 0.2
- 0.2
- 0.2
*
3.5
AGIRC
3.1
Source: Pension orientation council forecasts, July 2001
IRCANTEC
3.0
2.8
2.9
Public sector
2.5
2.1
2.0
1.7
1.5
Mines, State workers, Sailors, Banque de France, Notarial clerks, Clergy
1.7
1.6
1.6
1.0
2.3
2.5
2
1.8
1.8
1.7
1.4
CNRACL
2
1.8
1.6
1.2
1.3
1.7
1.6
1.5 1.5
1.4
1.1
CNAVPL
1.4 1.4
1.3 1.3
1
1
0.8
0.5
0.6
1.3
CNAVTS
1 1 0.9
0.9
0.9
0.9
0.3
0
2000
2005
2010
2015
The projections carried out for the CNAVTS are based on two alternative hypotheses for development of an average pension
(H1 and H2) because of the problems involved in predicting the amount of future pension linked to the method of calculating the
pension of the Basic Scheme.
2020
ARRCO
Source: Pension orientation council forecasts,
June 2001
2040
The forecasts of the Pension Orientation Council reveal an overall deterioration of the demographic equilibrium of schemes. Only
regimes where the erosion is already considerable (Railways, farmers) can expect no further deterioration.
22
JANUARY 2003
JANUARY 2003
23
5 Retirement through group funding
Levels of retirement insurance premiums from 1996 to 2000 (in billion francs)
RETIREMENT
INSURANCE
CONTRACTS
Employees of the private sector.
Companies may add an optional funded pension to the basic and supplementary schemes.
Various forms exist:
◆ The Institutions for Supplementary Retirement (IRS) are company schemes. With the Law of August 8, 1994, reforming
the Social Security Code, new rights must be funded and it is no longer possible to set up new IRSs. They number from
100 to 150 and for the most part are closed, i.e. no longer attributing new pension rights. There are no recent statistics
available for the IRSs.
◆ ‘Article 82’ contracts (of the General Tax Code) are life insurance contracts, negotiated collectively and offered
optionally to all or some of a company’s employees.
◆ ‘Article 83’ contracts (of the same code) are group insurance contracts with defined contributions, obligatory for all
or for certain categories of employees. They are by far the fastest developing form on the market for company
retirement plans.
◆ ‘Article 39’ contracts (of the same code) are also group insurance contracts. They operate along the same lines as
defined benefit schemes.
Independent workers.
The ‘Madelin Law’ contracts are also collective insurance contracts but established for independent workers. They
are underwritten by associations with insurance institutions and managed on a defined contribution basis.
Employees of the public sector.
They may contribute voluntarily to PREFON, a funded scheme managed by the PREFON association with a pool of
insurers led by the CNP within the context of a group insurance contract of the type of article L441 of the Insurance Code.
Within the context of the Mutuality Code, there existed a mixed scheme, the CREF, partly funded and partly pay-asyou-go. The system was found incompatible with the European Life Insurance Directive that is now in force for mutual
associations. It was replaced in 2002 by another entirely funded scheme with a new name.
The CGOS (Comité de Gestion des Oeuvres Sociales) concerns hospital personnel. It is managed by the AGF according
to the provisions of a contract with the board of management of social works of the Ministry of Health. Established as
pay-as-you-go with an obligation of funding five years of benefits, the CGOS opted in 1997 to gradually lower its yield
to allow adaptation and conversion to funding.
1996
1997
1998
1999
2000
Defined benefits
contracts (article 39)
3.1
5.7
5.5
10.7
8.5
Sursalary contracts
(article 82)
0.8
0.7
1.2
1.2
0.7
Defined contributions
5.9
5.9
6.6
7.4
18.4
2
1.7
2.6
2.9
3.3
1.8
2.2
2.9
3.5
4.6
-
-
1.2
0.9
1.3
13.6
16.2
20
26.6
36.8
Group retirement
schemes (article L.441-1)
Madelin Law
Supplementary
schemes for farmers
TOTAL
Source: FFSA - annual reports
Premiums for insurance contracts continue to grow, practically tripling in five years, from 13.6 billion francs in 1996 to
36.8 billion francs in 2000.
Levels of mathematical provisions for retirement insurance contracts from 1996 to 2000
(in billion francs)
RETIREMENT
INSURANCE
CONTRACTS
1996
1997
1998
1999
2000
Defined benefits
26.1
31.6
37.6
45.4
117.4
Sursalary contracts
(article 82)
7.7
8.2
8.8
9
9.2
73.5
80.6
96.3
98.2
64.3
Group retirement
35
39
45.5
51
53.8
Madelin Law
3.7
5.7
8.6
11.7
15.7
-
-
3.7
4.7
5.9
146
165.1
200.5
220
266.3
Supplementary
schemes for farmers
TOTAL
Source : FFSA - annual reports
Since 1994, provident institutions (PI), on an equal basis with insurance companies, can offer funded retirement plans.
Growth of contributions* collected by PIs for funded pensions (in billion francs)
1995
1996
1997
1998
1999
2000
0.3
0.4
0.9
1
1.2
1.7
* contributions for own account
24
JANUARY 2003
JANUARY 2003
Source: CTIP - annual reports
25
5 Retirement through group funding
Levels of retirement insurance premiums from 1996 to 2000 (in billion francs)
RETIREMENT
INSURANCE
CONTRACTS
Employees of the private sector.
Companies may add an optional funded pension to the basic and supplementary schemes.
Various forms exist:
◆ The Institutions for Supplementary Retirement (IRS) are company schemes. With the Law of August 8, 1994, reforming
the Social Security Code, new rights must be funded and it is no longer possible to set up new IRSs. They number from
100 to 150 and for the most part are closed, i.e. no longer attributing new pension rights. There are no recent statistics
available for the IRSs.
◆ ‘Article 82’ contracts (of the General Tax Code) are life insurance contracts, negotiated collectively and offered
optionally to all or some of a company’s employees.
◆ ‘Article 83’ contracts (of the same code) are group insurance contracts with defined contributions, obligatory for all
or for certain categories of employees. They are by far the fastest developing form on the market for company
retirement plans.
◆ ‘Article 39’ contracts (of the same code) are also group insurance contracts. They operate along the same lines as
defined benefit schemes.
Independent workers.
The ‘Madelin Law’ contracts are also collective insurance contracts but established for independent workers. They
are underwritten by associations with insurance institutions and managed on a defined contribution basis.
Employees of the public sector.
They may contribute voluntarily to PREFON, a funded scheme managed by the PREFON association with a pool of
insurers led by the CNP within the context of a group insurance contract of the type of article L441 of the Insurance Code.
Within the context of the Mutuality Code, there existed a mixed scheme, the CREF, partly funded and partly pay-asyou-go. The system was found incompatible with the European Life Insurance Directive that is now in force for mutual
associations. It was replaced in 2002 by another entirely funded scheme with a new name.
The CGOS (Comité de Gestion des Oeuvres Sociales) concerns hospital personnel. It is managed by the AGF according
to the provisions of a contract with the board of management of social works of the Ministry of Health. Established as
pay-as-you-go with an obligation of funding five years of benefits, the CGOS opted in 1997 to gradually lower its yield
to allow adaptation and conversion to funding.
1996
1997
1998
1999
2000
Defined benefits
3.1
5.7
5.5
10.7
8.5
Sursalary contracts
(article 82)
0.8
0.7
1.2
1.2
0.7
5.9
5.9
6.6
7.4
18.4
2
1.7
2.6
2.9
3.3
1.8
2.2
2.9
3.5
4.6
-
-
1.2
0.9
1.3
13.6
16.2
20
26.6
36.8
Group retirement
Madelin Law
Supplementary
schemes for farmers
TOTAL
Source: FFSA - annual reports
Premiums for insurance contracts continue to grow, practically tripling in five years, from 13.6 billion francs in 1996 to
36.8 billion francs in 2000.
(in billion francs)
RETIREMENT
INSURANCE
CONTRACTS
1996
1997
1998
1999
2000
Defined benefits
26.1
31.6
37.6
45.4
117.4
Sursalary contracts
(article 82)
7.7
8.2
8.8
9
9.2
73.5
80.6
96.3
98.2
64.3
Group retirement
35
39
45.5
51
53.8
Madelin Law
3.7
5.7
8.6
11.7
15.7
-
-
3.7
4.7
5.9
146
165.1
200.5
220
266.3
Supplementary
schemes for farmers
TOTAL
Source : FFSA - annual reports
Since 1994, provident institutions (PI), on an equal basis with insurance companies, can offer funded retirement plans.
Growth of contributions* collected by PIs for funded pensions (in billion francs)
1995
1996
1997
1998
1999
2000
0.3
0.4
0.9
1
1.2
1.7
* contributions for own account
24
JANUARY 2003
JANUARY 2003
Source: CTIP - annual reports
25
Growth of the active working population from 1962 to 2001 (in millions)
INDIVIDUALS
25
20
19.9
20.7
22.2
23
24.5
25.3
25.5
25.7
25.9
26
15
1 Active workers
10
5
0
1.1.THE ACTIVE WORKING POPULATION
Source: Population census
and employment surveys 1997, 1998,
2000, 2001, Insee
1962
1968
1975
1982
1990
1997
1998
1999
2000
2001
Variations in the rate of unemployment from 1995 to 2001 (in%)
The active working population includes active and jobless workers:
◆ The active working population is composed of persons aged 15 or more who held a job during the week of
reference as salaried employees, independent workers or participants in the work of a member of his/her family.
Employed persons who are temporarily absent due to illness, paid vacations or training are also included.
◆ The jobless population includes those jobless seeking employment and those with jobs scheduled to start at a
future date.
12
9
11.6
12.1
12.3
11.8
11.7
10
8.8
6
3
Source:
Employment surveys from 1995 to 2001
0
1995
1996
1997
1998
1999
2000
2001
In 2001, the active working population represented 23.8 million people, of which 89.1% were salaried and 10.9% non-salaried.
26
JANUARY 2003
JANUARY 2003
27
Growth of the active working population from 1962 to 2001 (in millions)
INDIVIDUALS
25
20
19.9
20.7
22.2
23
24.5
25.3
25.5
25.7
25.9
26
15
1 Active workers
10
5
0
1.1.THE ACTIVE WORKING POPULATION
Source: Population census
and employment surveys 1997, 1998,
2000, 2001, Insee
1962
1968
1975
1982
1990
1997
1998
1999
2000
2001
Variations in the rate of unemployment from 1995 to 2001 (in%)
The active working population includes active and jobless workers:
◆ The active working population is composed of persons aged 15 or more who held a job during the week of
reference as salaried employees, independent workers or participants in the work of a member of his/her family.
Employed persons who are temporarily absent due to illness, paid vacations or training are also included.
◆ The jobless population includes those jobless seeking employment and those with jobs scheduled to start at a
future date.
12
9
11.6
12.1
12.3
11.8
11.7
10
8.8
6
3
Source:
Employment surveys from 1995 to 2001
0
1995
1996
1997
1998
1999
2000
2001
In 2001, the active working population represented 23.8 million people, of which 89.1% were salaried and 10.9% non-salaried.
26
JANUARY 2003
JANUARY 2003
27
Apparent female occupational life expectancy from 1896 to 1997 (in years)
1 .2.LE NGT H OF T HE ACT I VE WOR KING L IFE
30
Calculating the occupational life expectancy is similar to calculating life expectancy itself since the apparent
expectancies for occupational life are based on transversal indexes and reflect merely the trends of the moment. The
calculation involves summing up the rate of activity per year and per age. The apparent occupational life expectancy,
broken down into three age categories, thus provides an estimation of the average number of working years.
6.28
5.98
0.94
1.18
6
5.19
25
60 and over
2.04
4.11
25 to 29
3.08
Under 25
20
15
16.57
16.66
15.52
14.48
15
15.55
19.07
23.11
26.49
6
6.74
6.27
6.09
5.02
4.68
4.47
3.89
2.54
1896
1911
1921
1931
1954
1968
1977
1987
1997
10
5
Apparent male occupational life expectancy from 1896 to 1997 (in years)
0
60
60 and over
Source: The length of working life
Dares Reports n°6/99
25 to 29
50
13.35
12.56
13.08
11.96
9.92
Under 25
6.38
3.72
1.83
40
1,04
30
33.08
33.08
33.34
33.22
33.11
32.78
32.71
31.96
32.07
9.56
1896
10.12
1911
10.11
1921
9.4
1931
7.56
1954
6.27
1968
5.44
1977
4.7
1987
3.3
1997
20
10
0
28
JANUARY 2003
From 1896 to 1997, the apparent occupational life expectancy of individuals has decreased considerably:
Men of less than 25 years of age in 1896 worked an average 9.5 years until their 25th year in comparison with 3 years in 1997. At the
same time, a person having reached the age of 60 or more in 1896, worked on the average more than 13 years. Taking into account the
development of social protections systems, this figure dropped to one year in 1997.
The apparent occupational life expectancy for men went down from 56 to 36.5 years, registering a decrease of almost 20 years in the
space of a century. Conversely, that for women has gone up slightly, rising from 29 to 23.5 years between 1896 and 1968 to 30 years in
1997. This phenomenon of shrinkage is concentrated at the two extremities of working life.
For the two sexes, occupational life expectancies for those less than 25 and over 60 have decreased significantly. Concerning the
intermediate tranche of 25-59, the expectancies for women have risen sharply, especially since 1968, a fact that reflects their increased
involvement in the labour market, while that for men has gone down by about a year during the period under consideration. In other words,
individuals enter the labour marker later and leave earlier.
Actually, if people worked much more at every age in 1896, mortality interrupted the working life earlier. Thanks to a regression in
mortality, the length of a career has remained approximately stable while periods of training and inactivity have increased.
JANUARY 2003
29
Apparent female occupational life expectancy from 1896 to 1997 (in years)
1 .2.LE NGT H OF T HE ACT I VE WOR KING L IFE
30
Calculating the occupational life expectancy is similar to calculating life expectancy itself since the apparent
expectancies for occupational life are based on transversal indexes and reflect merely the trends of the moment. The
calculation involves summing up the rate of activity per year and per age. The apparent occupational life expectancy,
broken down into three age categories, thus provides an estimation of the average number of working years.
6.28
5.98
0.94
1.18
6
5.19
25
60 and over
2.04
4.11
25 to 29
3.08
Under 25
20
15
16.57
16.66
15.52
14.48
15
15.55
19.07
23.11
26.49
6
6.74
6.27
6.09
5.02
4.68
4.47
3.89
2.54
1896
1911
1921
1931
1954
1968
1977
1987
1997
10
5
Apparent male occupational life expectancy from 1896 to 1997 (in years)
0
60
60 and over
25 to 29
50
13.35
12.56
13.08
11.96
9.92
Under 25
6.38
3.72
1.83
40
1,04
30
33.08
33.08
33.34
33.22
33.11
32.78
32.71
31.96
32.07
9.56
1896
10.12
1911
10.11
1921
9.4
1931
7.56
1954
6.27
1968
5.44
1977
4.7
1987
3.3
1997
20
10
0
28
JANUARY 2003
From 1896 to 1997, the apparent occupational life expectancy of individuals has decreased considerably:
Men of less than 25 years of age in 1896 worked an average 9.5 years until their 25th year in comparison with 3 years in 1997. At the
same time, a person having reached the age of 60 or more in 1896, worked on the average more than 13 years. Taking into account the
development of social protections systems, this figure dropped to one year in 1997.
The apparent occupational life expectancy for men went down from 56 to 36.5 years, registering a decrease of almost 20 years in the
space of a century. Conversely, that for women has gone up slightly, rising from 29 to 23.5 years between 1896 and 1968 to 30 years in
1997. This phenomenon of shrinkage is concentrated at the two extremities of working life.
For the two sexes, occupational life expectancies for those less than 25 and over 60 have decreased significantly. Concerning the
intermediate tranche of 25-59, the expectancies for women have risen sharply, especially since 1968, a fact that reflects their increased
involvement in the labour market, while that for men has gone down by about a year during the period under consideration. In other words,
individuals enter the labour marker later and leave earlier.
Actually, if people worked much more at every age in 1896, mortality interrupted the working life earlier. Thanks to a regression in
mortality, the length of a career has remained approximately stable while periods of training and inactivity have increased.
JANUARY 2003
29
In contrast to apparent life expectancies, actual life expectancies take mortality rates into account. The concept of
occupational activity belongs to the International Labour Organisation (ILO). A life is broken down into periods of actual
expectancy of schooling, work, unemployment, occupational inactivity, retirement and national service for men.
1. 3 . G RO U P F U N D ED P EN S I O N S A V I N G S MEMB ERS
An INSEE survey on estates took the following factors into account:
Voluntary supplementary retirement includes:
◆ ‘Ex-coreva’ type contracts for farmers,
◆ Madelin contracts, established in 1994 for independent workers,
◆ Funded schemes for government employees such as Préfon or Cref.
Actual life expectancy for men at birth
Breakdown according to various periods of life from 1975 to 1997
BREAKDOWN
1975
1980
1985
1990
1995
1997
Total life expectancy
68.97
70.17
71.24
72.73
73.91
74.15
Childhood - school
18.89
19.3
19.9
20.85
21.79
21.84
0.6
0.53
0.58
0.52
0.53
0.5
Employment
37.27
35.85
32.72
32.01
30.02
29.77
Unemployment
0.99
1.49
2.92
2.38
3.29
3.69
Inactivity
1.29
1.36
1.66
1.91
2.11
2.1
Retirement
9.93
11.64
13.46
15.06
16.17
16.25
National service
Sursupplementary retirement:
This refers to contracts covered by articles 82, 83 and 39 of the General Tax Code. Such contracts are established by
employers and are intended for employees of the private sector.
Other products of long-term savings:
Such products are badly defined and not clearly covered in the survey.
Retirement savings holdings according to age in 2000 (in %)
AGE OF PERSON
OF REFERENCE
Source: The length of active working life
Dares reports, N°6/99
RETIREMENT SAVINGS
(including voluntary supplementary retirement)
Under 30
5.8
30 to 39
15.6
40 to 49
21.6
Actual life expectancy for women at birth
50 to 59
16.4
60 to 69
6.7
70 and over
2.1
BREAKDOWN
1975
1980
1985
1990
1995
1997
76.84
78.38
79.42
80.91
81.83
81.99
Childhood - school
19.14
19.68
20.31
21.29
22.36
22.47
Employment
23.8
24.18
23.75
24.21
24.28
24.22
Unemployment
1.25
2.26
3.21
3.2
3.83
3.97
Inactivity
23.1
20.64
18.89
16.42
14.3
13.92
Retirement
9.55
11.62
13.26
15.79
17.06
17.41
Retirement savings rate according to social category in 2000 (in %)
SOCIAL
CATEGORY
Life expectancy is increasing while occupational life is shortening:
While the occupational life expectancy for men decreased during the period 1975-1997, that for women levelled off. Inversely, the actual
unemployment expectancy for men has gone up fourfold in just over twenty years. That of women has risen from 1.3 years in 1975 to
4 years in 1997. During the same period, actual scholastic expectancy improved by 3 years for boys and 3.5 years for girls. Simultaneously,
the actual retirement expectancy has increased by 6.5 years for men and 8 years for women. The period 1975-1997 witnessed a rise in the
number of years of schooling, unemployment and retirement.
30
Source: Estate survey
(EPCV, May 2000, Insee)
JANUARY 2003
RETIREMENT SAVINGS
Farmers
37.6
Craftsmen
32.6
Liberal professions
43.3
Executives
26.7
Intermediate occupations
17.2
Employees
12.3
Skilled workers
12.1
Unskilled workers
4.4
Retired farmers
7.1
Retired independents
2.6
Retired employees
3.8
Other inactive
2.1
JANUARY 2003
(1) For further details on group funding
please see p 23
31
In contrast to apparent life expectancies, actual life expectancies take mortality rates into account. The concept of
occupational activity belongs to the International Labour Organisation (ILO). A life is broken down into periods of actual
expectancy of schooling, work, unemployment, occupational inactivity, retirement and national service for men.
1. 3 . G RO U P F U N D ED P EN S I O N S A V I N G S MEMB ERS
An INSEE survey on estates took the following factors into account:
Voluntary supplementary retirement includes:
◆ ‘Ex-coreva’ type contracts for farmers,
◆ Madelin contracts, established in 1994 for independent workers,
◆ Funded schemes for government employees such as Préfon or Cref.
BREAKDOWN
1975
1980
1985
1990
1995
1997
68.97
70.17
71.24
72.73
73.91
74.15
Childhood - school
18.89
19.3
19.9
20.85
21.79
21.84
0.6
0.53
0.58
0.52
0.53
0.5
Employment
37.27
35.85
32.72
32.01
30.02
29.77
Unemployment
0.99
1.49
2.92
2.38
3.29
3.69
Inactivity
1.29
1.36
1.66
1.91
2.11
2.1
Retirement
9.93
11.64
13.46
15.06
16.17
16.25
National service
Sursupplementary retirement:
This refers to contracts covered by articles 82, 83 and 39 of the General Tax Code. Such contracts are established by
employers and are intended for employees of the private sector.
Other products of long-term savings:
Such products are badly defined and not clearly covered in the survey.
Retirement savings holdings according to age in 2000 (in %)
AGE OF PERSON
OF REFERENCE
RETIREMENT SAVINGS
(including voluntary supplementary retirement)
Under 30
5.8
30 to 39
15.6
40 to 49
21.6
50 to 59
16.4
60 to 69
6.7
70 and over
2.1
BREAKDOWN
1975
1980
1985
1990
1995
1997
76.84
78.38
79.42
80.91
81.83
81.99
Childhood - school
19.14
19.68
20.31
21.29
22.36
22.47
Employment
23.8
24.18
23.75
24.21
24.28
24.22
Unemployment
1.25
2.26
3.21
3.2
3.83
3.97
Inactivity
23.1
20.64
18.89
16.42
14.3
13.92
Retirement
9.55
11.62
13.26
15.79
17.06
17.41
Retirement savings rate according to social category in 2000 (in %)
SOCIAL
CATEGORY
Life expectancy is increasing while occupational life is shortening:
While the occupational life expectancy for men decreased during the period 1975-1997, that for women levelled off. Inversely, the actual
unemployment expectancy for men has gone up fourfold in just over twenty years. That of women has risen from 1.3 years in 1975 to
4 years in 1997. During the same period, actual scholastic expectancy improved by 3 years for boys and 3.5 years for girls. Simultaneously,
the actual retirement expectancy has increased by 6.5 years for men and 8 years for women. The period 1975-1997 witnessed a rise in the
number of years of schooling, unemployment and retirement.
30
JANUARY 2003
RETIREMENT SAVINGS
Farmers
37.6
Craftsmen
32.6
Liberal professions
43.3
Executives
26.7
Intermediate occupations
17.2
Employees
12.3
Skilled workers
12.1
Unskilled workers
4.4
Retired farmers
7.1
Retired independents
2.6
Retired employees
3.8
Other inactive
2.1
JANUARY 2003
(1) For further details on group funding
please see p 23
31
Retirement savings according to annual household income in 2000 (in%)
ANNUAL HOUSEHOLD
INCOME
2 From working life to retirement
RETIREMENT SAVINGS
Under 60,000 F
2.6
60 to 100,000 F
4.3
100,000 to 150,000 F
10.1
150,000 to 240,000 F
15.9
240,000 to 300,000 F
25.9
300,000 F and over
Trends for the population aged 50 to 59 (in millions)
1989
1994
1999
2004
2009
5.9
5.6
6.6
8
8.2
31.9
In 2000, retirement savings concerned nearly 12% of French households, particularly those in the 40-49 age bracket, with
21.6% holding plans. Savings retirement concerns independents rather than salaried employees, even though the holding rate for
executives is 26.7% and 17.2% for the intermediary professions. This is due to the development of pension funds for independents
covered by the Madelin Law of 1994. Holdings of retirement savings grows in relation to the level of household income.
Source: The job market for those
aged 50 and over, Employment and
Solidarity Ministry, November 2000
2.1.ENDS OF CAREERS
Rate of activity for the male population aged 50 to 59 (in%)
0%
Retirement savings according to social category, not including other forms
of long-term savings (in%)
1975
1980
34.5
30
26.9
Voluntary supplementary
retirement
1985
Additional supplementary
retirement
1990
24.6
25
20
1995
15
13.8
11.7
10
7.8
5.7
5
5.9
1996
3.1
5.5
3.5
0.6
1.7
4.3
0
1.1
0.5
2.6
0.5
1.1
0.5
1998
1999
32
2000
JANUARY 2003
40%
60%
80%
50 to 54
93.6
55 to 59
83.3
92.9
81
91.2
67.8
90
67.7
90.8
66.1
92
67.9
7.9
Fa
rm
ers
Cr
a
Lib
era ftsm
en
lp
ro
fes
sio
Int
ns
erm
Ex
ec
ed
ut
iat
ive
eo
s
ccu
pa
tio
ns
Em
plo
Sk
ye
ille
e
dw s
Un
or
ke
ski
rs
lle
dw
o
rke
Re
tir
rs
ed
Re
tir
far
ed
me
ind
rs
ep
en
Re
de
tir
nt
ed
s
em
plo
ye
Ot
es
he
r in
ac
tiv
e
0
2.5
9.3
20%
91.4
67
91.2
67.7
90.8
Source: 1999 job surveys and population
census, Insee
65.8
JANUARY 2003
33
Retirement savings according to annual household income in 2000 (in%)
ANNUAL HOUSEHOLD
INCOME
2 From working life to retirement
RETIREMENT SAVINGS
Under 60,000 F
2.6
60 to 100,000 F
4.3
100,000 to 150,000 F
10.1
150,000 to 240,000 F
15.9
240,000 to 300,000 F
25.9
300,000 F and over
Trends for the population aged 50 to 59 (in millions)
1989
1994
1999
2004
2009
5.9
5.6
6.6
8
8.2
31.9
In 2000, retirement savings concerned nearly 12% of French households, particularly those in the 40-49 age bracket, with
21.6% holding plans. Savings retirement concerns independents rather than salaried employees, even though the holding rate for
executives is 26.7% and 17.2% for the intermediary professions. This is due to the development of pension funds for independents
covered by the Madelin Law of 1994. Holdings of retirement savings grows in relation to the level of household income.
Source: The job market for those
aged 50 and over, Employment and
Solidarity Ministry, November 2000
2.1.ENDS OF CAREERS
Rate of activity for the male population aged 50 to 59 (in%)
0%
Retirement savings according to social category, not including other forms
of long-term savings (in%)
1975
1980
34.5
30
26.9
Voluntary supplementary
retirement
1985
Additional supplementary
retirement
1990
24.6
25
20
1995
15
13.8
11.7
10
7.8
5.7
5
5.9
1996
3.1
5.5
3.5
0.6
1.7
4.3
0
1.1
0.5
2.6
0.5
1.1
0.5
1998
1999
32
2000
JANUARY 2003
40%
60%
80%
50 to 54
93.6
55 to 59
83.3
92.9
81
91.2
67.8
90
67.7
90.8
66.1
92
67.9
7.9
Fa
rm
ers
Cr
a
Lib
era ftsm
en
lp
ro
fes
sio
Int
ns
erm
Ex
ec
ed
ut
iat
ive
eo
s
ccu
pa
tio
ns
Em
plo
Sk
ye
ille
e
dw s
Un
or
ke
ski
rs
lle
dw
o
rke
Re
tir
rs
ed
Re
tir
far
ed
me
ind
rs
ep
en
Re
de
tir
nt
ed
s
em
plo
ye
Ot
es
he
r in
ac
tiv
e
0
2.5
9.3
20%
91.4
67
91.2
67.7
90.8
census, Insee
65.8
JANUARY 2003
33
Rate of activity for the female population aged 50 to 59 (in%)
0%
1975
20%
60%
80%
50 to 54
52.7
44.2
1980
40%
Occupational status of the population aged 50 to 59 in 2000 (in%)
50 to 54
Actively employed
15.90
55 to 59
Unemployed
1.90
6.10
55.4
Retired
48
1985
Other inactive
(including early retired)
57.8
42.8
1990
1995
76.10
62.7
45.3
69.9
Source: 2000 job survey, Insee
48.5
1996
1998
1999
2000
71.5
49.1
73.3
49.3
55 to 59
74.6
Actively employed
26.00
Unemployed
50.9
15.20
Retired
73.7
51.9
census, Insee
Other inactive
5.10
53.70
The rate of activity for men over 50 has registered a sizeable decrease since 1975, going down by 3 points for men aged 50
to 54. The sharpest decrease has been for those aged 55 to 59, dropping from 83.3% in 1975 to 65.8% in 2000. Conversely, the
rate for women of over 50 has gone up over the past 25 years. 73.7% of women aged 50 to 54 and 51.9% aged 55 to 59 were
still active in 2000 in comparison with 52.7% and 44.2% 25 years earlier.
Between the two age brackets, the percentage of active workers declined from 76.1% to 53.7%, with unemployment levelling off
at around 5 to 6%. This provided a rise in the number of pensioners and other non-active persons, due mainly to early retirement
measures adopted by employers as well as the public authorities.
34
JANUARY 2003
JANUARY 2003
35
Rate of activity for the female population aged 50 to 59 (in%)
0%
1975
20%
60%
80%
50 to 54
52.7
44.2
1980
40%
Occupational status of the population aged 50 to 59 in 2000 (in%)
50 to 54
Actively employed
15.90
55 to 59
Unemployed
1.90
6.10
55.4
Retired
48
1985
Other inactive
57.8
42.8
1990
1995
76.10
62.7
45.3
69.9
48.5
1996
1998
1999
2000
71.5
49.1
73.3
49.3
55 to 59
74.6
Actively employed
26.00
Unemployed
50.9
15.20
Retired
73.7
51.9
census, Insee
Other inactive
5.10
53.70
The rate of activity for men over 50 has registered a sizeable decrease since 1975, going down by 3 points for men aged 50
to 54. The sharpest decrease has been for those aged 55 to 59, dropping from 83.3% in 1975 to 65.8% in 2000. Conversely, the
rate for women of over 50 has gone up over the past 25 years. 73.7% of women aged 50 to 54 and 51.9% aged 55 to 59 were
still active in 2000 in comparison with 52.7% and 44.2% 25 years earlier.
Between the two age brackets, the percentage of active workers declined from 76.1% to 53.7%, with unemployment levelling off
at around 5 to 6%. This provided a rise in the number of pensioners and other non-active persons, due mainly to early retirement
measures adopted by employers as well as the public authorities.
34
JANUARY 2003
JANUARY 2003
35
2.2.TH E S I TUAT I ON PRI OR T O P E NS ION S E TTL E M E NT
2.3.EARLY RETIREMENT
TOTAL EARLY RETIREMENT
Comparison of the average age of leaving employment and the average age of pension
settlement in 1996 (in years)
63.5
62.75
61.75
61
60.25
60
◆ ARPE (Job Replacement Allowance)
Average age upon leaving
employment
59.25
Average age of pension
settlement
63
62.25
61
59.75
58.5
Stemming from an agreement of the social partners of September 1995, the ARPE allows elderly salaried employees
with 40 years of contributions to old age insurance and with at least 12 years of affiliation to the unemployment
insurance system to cease their occupational activity. As of 58 up to 60 years of age, they may benefit from the job
replacement allowance, representing 65% of the previous reference wage (within a limit of 4 times the Social Security
ceiling). In return, an employer must agree to maintain the number of hours worked by one or several hirings.
The measure, financed by UNEDIC (unemployment scheme), has been extended to January 2003. It is currently available only to workers of the 1940-1941 generation with 160 quarters of coverage with the basic pension schemes.
57.75
◆ ASFNE (Special Allowance of the National Employment Fund)
50
40
Source: Job survey supplement
March 1996, Insee
+ 84
80 to 84
75 to 79
70 to 74
65 to 69
60 to 64
This convention, dating from 1963, forms the basis for government action to allow early retirement. The measures
are applied within the context of a social plan. An employer signs a so-called ‘FNE’ agreement with the Labour Department
upon presentation of a social plan. Employees of a firm aged 57 or more, laid-off for economic reasons, can then benefit
from an early retirement allowance. Adherence to an early retirement plan is voluntary for the employee who will receive
the allowance up until the moment when full retirement is possible (age 65 at the latest).
Financed mainly by the State, with the participation of the employer and employee, there is no necessity for the
employer to guarantee re-employment. However, the conditions of admittance to this type of convention have been
stiffened. Such plans must now conform to efforts to maintain employment.
PARTIAL EARLY RETIREMENT
There is an interval between the age people leave their jobs and the age when they settle their pensions. The interval varies
according to the generation under consideration. Men aged over 84 in 1996 went on retirement an average 6 months within
leaving their jobs. The average age of pension settlement for women after leaving their jobs is equivalent to that for men.
36
JANUARY 2003
◆ Partial early retirement
Partial early retirement is available within the context of a social plan. It is the result of an agreement between an
enterprise and the State, with the objective of allowing employees aged 55 or over to work part-time. In addition to a
salary paid by the firm, the employee receives a bridging allowance until full retirement (age 65 at the latest).
Partial early retirement is intended to limit unemployment, with the firm agreeing to hire additional employees or
reduce layoffs impending for economic reasons. The firm must also pay a financial contribution in relation to its size
and the number of employees hired to compensate.
JANUARY 2003
37
2.2.TH E S I TUAT I ON PRI OR T O P E NS ION S E TTL E M E NT
2.3.EARLY RETIREMENT
TOTAL EARLY RETIREMENT
Comparison of the average age of leaving employment and the average age of pension
settlement in 1996 (in years)
63.5
62.75
61.75
61
60.25
60
◆ ARPE (Job Replacement Allowance)
Average age upon leaving
employment
59.25
Average age of pension
settlement
63
62.25
61
59.75
58.5
Stemming from an agreement of the social partners of September 1995, the ARPE allows elderly salaried employees
with 40 years of contributions to old age insurance and with at least 12 years of affiliation to the unemployment
insurance system to cease their occupational activity. As of 58 up to 60 years of age, they may benefit from the job
replacement allowance, representing 65% of the previous reference wage (within a limit of 4 times the Social Security
ceiling). In return, an employer must agree to maintain the number of hours worked by one or several hirings.
The measure, financed by UNEDIC (unemployment scheme), has been extended to January 2003. It is currently available only to workers of the 1940-1941 generation with 160 quarters of coverage with the basic pension schemes.
57.75
◆ ASFNE (Special Allowance of the National Employment Fund)
50
40
Source: Job survey supplement
March 1996, Insee
+ 84
80 to 84
75 to 79
70 to 74
65 to 69
60 to 64
This convention, dating from 1963, forms the basis for government action to allow early retirement. The measures
are applied within the context of a social plan. An employer signs a so-called ‘FNE’ agreement with the Labour Department
upon presentation of a social plan. Employees of a firm aged 57 or more, laid-off for economic reasons, can then benefit
from an early retirement allowance. Adherence to an early retirement plan is voluntary for the employee who will receive
the allowance up until the moment when full retirement is possible (age 65 at the latest).
Financed mainly by the State, with the participation of the employer and employee, there is no necessity for the
employer to guarantee re-employment. However, the conditions of admittance to this type of convention have been
stiffened. Such plans must now conform to efforts to maintain employment.
PARTIAL EARLY RETIREMENT
There is an interval between the age people leave their jobs and the age when they settle their pensions. The interval varies
according to the generation under consideration. Men aged over 84 in 1996 went on retirement an average 6 months within
leaving their jobs. The average age of pension settlement for women after leaving their jobs is equivalent to that for men.
36
JANUARY 2003
◆ Partial early retirement
Partial early retirement is available within the context of a social plan. It is the result of an agreement between an
enterprise and the State, with the objective of allowing employees aged 55 or over to work part-time. In addition to a
salary paid by the firm, the employee receives a bridging allowance until full retirement (age 65 at the latest).
Partial early retirement is intended to limit unemployment, with the firm agreeing to hire additional employees or
reduce layoffs impending for economic reasons. The firm must also pay a financial contribution in relation to its size
and the number of employees hired to compensate.
JANUARY 2003
37
Number of annual entries to ASFNE, CATS, Partial Early Retirement
and ARPE plans from 1993 to 2000
BRANCH AGREEMENTS FOR EARLY RETIREMENT
◆ The CATS (or CASA: work termination for elderly salaried workers)
The social partners of the metallurgical industry signed an agreement for early retirement in the metallurgical
sector on July 26, 1999, specially concerning automotive construction. The accord, entering into application in February
2000, was expanded to include other sectors of activity such as the paper, chemical, quarry and material, and textile
industries.
Arrangements depend on the type of agreement. In the metallurgical sector, employees working in arduous
conditions or experiencing particular difficulties in adapting to their work, may be allowed to stop all activity as of age 55.
They will receive a bridging allowance, financed by the employer until age 57 and then together with the State. The
job contract between the employer and the ‘early-retired’ employee is not interrupted. The employer may request the
employee to perform periods of work up until age 57.
60,000
56,345
52,211
49,462
50,000
40,000
37,461
35,353
30,000
26,858
24,262
23,683
22,282
21,669
20,000
PRIVATE EARLY RETIREMENT
45,170
43,348
10,000
21,015
20,870
18,672
16,717
10,616
13,372
11,117
7,920
11,993
5,218
A firm may establish private early retirement plans not covered by State or UNEDIC conventions. Such plans are
entirely paid for by employers and usually concern employees aged over 50. They vary case by case according to an
employer and for this reason reliable figures are not available.
2,650
0
1993
1994
1995
1996
1997
1998
Source: UNEDIC, payment statistics
1999
2000
Partial early retirement
ASFNE
ARPE
MEASURES FOR THE ELDERLY JOBLESS
CATS
Alongside early retirement systems, there are measures aimed at improving the income of old age pensioners.
◆ The ACA (Allowance for the elderly unemployed)
Implemented in 1997, this set of measures is intended for the elderly jobless (aged less than 60) with 160 quarters
of membership in an old age insurance scheme. The beneficiaries are those receiving a unique digressive allowance
(AUD). They may now receive an AUD at the full rate. The allowance is no longer digressive and is granted until 60
according to the terms agreed upon when opening rights. Beneficiaries may ask to be dispensed from seeking employment
as of age 55. This provision has been suspended. As of January 2002, entry into a ACA is no longer possible.
Number of ASFNE, Partial Early Retirement
and ARPE recipients from 1993 to 2000
250,000
232,637
228,616
219,683
ASFNE
210,129
200,000
174,662
ARPE
207,551
191,807
202,605
179,219
188,564
Total number of beneficiaries
◆ The ASA (Specific Waiting Allowance)
The Specific Waiting Allowance, instituted in 1998, is paid as a supplement to the social minimum to beneficiaries
of the Specific Solidarity Allowance (ASS) or Minimum Insertion Revenue (RMI) until settlement of pension rights.
The aim is to ensure a minimum subsistence level to recipients of the ASS or RMI. Beneficiaries are less than 60 with
160 quarters of membership in an old age insurance scheme.
150,000
152,409
128,442
107,789
100,000
90,654
65,795
◆ AER (Retirement Equivalent Allowance)
A new allowance has been provided for in the Finance Act of 2002 to replace the Specific Waiting Allowance. Known
as the Retirement Equivalent Allowance (AER), it is intended for the unemployed aged less than 60 with 160 quarters
of membership in an old age insurance scheme and indemnified by the Specific Solidarity Allowance. The AER may
supplement an unemployment insurance allowance in order to allow a beneficiary a minimum income of the equivalent
of 5752.74 francs. The measure will enter into force upon publication of a decree of the State Council.
52,520
54,672
50,000
49,523
55,032
79,917
52,112
84,519
86,580
73,411
59,939
44,675
42,045
1999
2000
30,910
2,622
17,145
0
1993
1994
1995
1996
1997
1998
The number of early pensioners grew sharply between 1993 and 2000. However, efforts are underway to reduce their number
as shown by the decrease in the total number of recipients since 1997.
38
JANUARY 2003
JANUARY 2003
39
Number of annual entries to ASFNE, CATS, Partial Early Retirement
and ARPE plans from 1993 to 2000
BRANCH AGREEMENTS FOR EARLY RETIREMENT
◆ The CATS (or CASA: work termination for elderly salaried workers)
The social partners of the metallurgical industry signed an agreement for early retirement in the metallurgical
sector on July 26, 1999, specially concerning automotive construction. The accord, entering into application in February
2000, was expanded to include other sectors of activity such as the paper, chemical, quarry and material, and textile
industries.
Arrangements depend on the type of agreement. In the metallurgical sector, employees working in arduous
conditions or experiencing particular difficulties in adapting to their work, may be allowed to stop all activity as of age 55.
They will receive a bridging allowance, financed by the employer until age 57 and then together with the State. The
job contract between the employer and the ‘early-retired’ employee is not interrupted. The employer may request the
employee to perform periods of work up until age 57.
60,000
56,345
52,211
49,462
50,000
40,000
37,461
35,353
30,000
26,858
24,262
23,683
22,282
21,669
20,000
PRIVATE EARLY RETIREMENT
45,170
43,348
10,000
21,015
20,870
18,672
16,717
10,616
13,372
11,117
7,920
11,993
5,218
A firm may establish private early retirement plans not covered by State or UNEDIC conventions. Such plans are
entirely paid for by employers and usually concern employees aged over 50. They vary case by case according to an
employer and for this reason reliable figures are not available.
2,650
0
1993
1994
1995
1996
1997
1998
1999
2000
ASFNE
ARPE
MEASURES FOR THE ELDERLY JOBLESS
CATS
Alongside early retirement systems, there are measures aimed at improving the income of old age pensioners.
◆ The ACA (Allowance for the elderly unemployed)
Implemented in 1997, this set of measures is intended for the elderly jobless (aged less than 60) with 160 quarters
of membership in an old age insurance scheme. The beneficiaries are those receiving a unique digressive allowance
(AUD). They may now receive an AUD at the full rate. The allowance is no longer digressive and is granted until 60
according to the terms agreed upon when opening rights. Beneficiaries may ask to be dispensed from seeking employment
as of age 55. This provision has been suspended. As of January 2002, entry into a ACA is no longer possible.
Number of ASFNE, Partial Early Retirement
and ARPE recipients from 1993 to 2000
250,000
232,637
228,616
219,683
ASFNE
210,129
200,000
174,662
ARPE
207,551
191,807
202,605
179,219
188,564
Total number of beneficiaries
◆ The ASA (Specific Waiting Allowance)
The Specific Waiting Allowance, instituted in 1998, is paid as a supplement to the social minimum to beneficiaries
of the Specific Solidarity Allowance (ASS) or Minimum Insertion Revenue (RMI) until settlement of pension rights.
The aim is to ensure a minimum subsistence level to recipients of the ASS or RMI. Beneficiaries are less than 60 with
160 quarters of membership in an old age insurance scheme.
150,000
152,409
128,442
107,789
100,000
90,654
65,795
◆ AER (Retirement Equivalent Allowance)
A new allowance has been provided for in the Finance Act of 2002 to replace the Specific Waiting Allowance. Known
as the Retirement Equivalent Allowance (AER), it is intended for the unemployed aged less than 60 with 160 quarters
of membership in an old age insurance scheme and indemnified by the Specific Solidarity Allowance. The AER may
supplement an unemployment insurance allowance in order to allow a beneficiary a minimum income of the equivalent
of 5752.74 francs. The measure will enter into force upon publication of a decree of the State Council.
52,520
54,672
50,000
49,523
55,032
79,917
52,112
84,519
86,580
73,411
59,939
44,675
42,045
1999
2000
30,910
2,622
17,145
0
1993
1994
1995
1996
1997
1998
The number of early pensioners grew sharply between 1993 and 2000. However, efforts are underway to reduce their number
as shown by the decrease in the total number of recipients since 1997.
38
JANUARY 2003
JANUARY 2003
39
Socio-occupational features of ASFNE, Partial Early Retirement
and ARPE beneficiaries in 2000 (in%)
Number of ASFNE, Partial Early Retirement and ARPE
recipients according to sex in 2000 (in%)
100
ASFNE
Unskilled workers
8.6
19.6
Skilled workers
Men
29.7
32.8
35
70.3
67.2
65
ASFNE
ARPE
Women
80
Salaried employees
20.2
Technicians, foremen
Executives, engineers
60
27.7
40
23.8
Source: UNEDIC, Payment statistics, 2000
20
0
Source: UNEDIC, payment statistics, 2000
Unskilled workers
12.3
12.2
Skilled workers
25.1
Salaried employees
17.4
No matter what the type, retirement concerns more men than women in all socio-occupational categories, even if the trend for
women is on the rise. It is mainly workers, employees and technicians who are the beneficiaries of early retirement.
32.9
ARPE
9.8
Unskilled workers
13.2
Skilled workers
Salaried employees
24.2
21.7
31.1
40
JANUARY 2003
JANUARY 2003
41
Socio-occupational features of ASFNE, Partial Early Retirement
and ARPE beneficiaries in 2000 (in%)
Number of ASFNE, Partial Early Retirement and ARPE
recipients according to sex in 2000 (in%)
100
ASFNE
Unskilled workers
8.6
19.6
Skilled workers
Men
29.7
32.8
35
70.3
67.2
65
ASFNE
ARPE
Women
80
Salaried employees
20.2
60
27.7
40
23.8
20
0
Source: UNEDIC, payment statistics, 2000
Unskilled workers
12.3
12.2
Skilled workers
25.1
Salaried employees
17.4
No matter what the type, retirement concerns more men than women in all socio-occupational categories, even if the trend for
women is on the rise. It is mainly workers, employees and technicians who are the beneficiaries of early retirement.
32.9
ARPE
9.8
Unskilled workers
13.2
Skilled workers
Salaried employees
24.2
21.7
31.1
40
JANUARY 2003
JANUARY 2003
41
3 Pensioners
2.4.THE WORKING POPULATION OVER 60
Number of people over 60 working according to sex (in%)
60
56.8
Men, 60 to 64
Men, 65 to 69
50
3.1.AGEING OF THE POPULATION AND LIFE EXPECTANCY ACCORDING TO AGE
Women, 60 to 64
47.9
Women, 65 to 69
40
30
Population trends from 1950 to 2050
30.8
30
27.6
22.9
20
14.5
11.9
18.8
10.7
10
7
5
0
1980
1985
17
17.2
16.1
15.3
14.4
14.8
14.4
14
14.5
4.6
4.6
4
4
3.6
2.9
1995
3.6
2.5
1997
2.5
1998
17
6.6
1975
70,000
22.8
3.5
1990
16.7
64,468
64,032
23.1%
27.3%
31.1%
33.5%
35.1%
53.8%
53.1%
50.2%
47.6%
45.9%
44.8%
27.8%
25.6%
23.8%
22.5%
21.3%
20.6%
20.1%
1990
2000
2010
2020
2030
2040
2050
61,061
19%
20.6%
53.7%
53.2%
30.1%
1950
50,000
13.5
63,927
58,744
60,000
15.5
62,734
56,577
41,647
1996
40,000
3.7
2.2 2.5
1999
2000
Source: Insee job surveys
16.2%
30,000
20,000
10,000
The number of men and women over 60 working has decreased considerably since the 80s:
More than half of the men aged 60-64 were still active in 1975. In 2000, the number amounted to 15.5%. The case of women
is slightly more complex since the drop has been slower. Women experience careers that are more erratic than men and must retire later to accumulate the required number of quarters for a full pension. After a notable decline between 1980 and 1985, the
number of women working has tended to level off over the past ten years at 14% for those aged 60-64. The decrease in people
working is largely due to the drop in retirement age from 65 to 60 in 1983 for the basic scheme for salaried employees of the
private sector.
0
Sample: metropolitan France
Population aged 0 to 19
Source: Demographic projections
(main scenario: continued trend) Insee
Population aged 60 and over
The French population continues to grow:
In 2000, France’s population stood at around 59 million and the INSEE (National Institute for Statistics and Economic Studies)
expects it to keep on growing until 2040. The increase is not evenly distributed among age groups. In fact, the number of those
less than 20 is declining; a trend that should continue according to INSEE demographic projections. Conversely, the number of
those 60 and over has gained 4.5 points over the past 50 years. In 2050, it is expected to represent a third of the French population.
42
JANUARY 2003
JANUARY 2003
43
3 Pensioners
2.4.THE WORKING POPULATION OVER 60
Number of people over 60 working according to sex (in%)
60
56.8
Men, 60 to 64
Men, 65 to 69
50
3.1.AGEING OF THE POPULATION AND LIFE EXPECTANCY ACCORDING TO AGE
Women, 60 to 64
47.9
Women, 65 to 69
40
30
30.8
30
27.6
22.9
20
14.5
11.9
18.8
10.7
10
7
5
0
1980
1985
17
17.2
16.1
15.3
14.4
14.8
14.4
14
14.5
4.6
4.6
4
4
3.6
2.9
1995
3.6
2.5
1997
2.5
1998
17
6.6
1975
70,000
22.8
3.5
1990
16.7
64,468
64,032
23.1%
27.3%
31.1%
33.5%
35.1%
53.8%
53.1%
50.2%
47.6%
45.9%
44.8%
27.8%
25.6%
23.8%
22.5%
21.3%
20.6%
20.1%
1990
2000
2010
2020
2030
2040
2050
61,061
19%
20.6%
53.7%
53.2%
30.1%
1950
50,000
13.5
63,927
58,744
60,000
15.5
62,734
56,577
41,647
1996
40,000
3.7
2.2 2.5
1999
2000
Source: Insee job surveys
16.2%
30,000
20,000
10,000
The number of men and women over 60 working has decreased considerably since the 80s:
More than half of the men aged 60-64 were still active in 1975. In 2000, the number amounted to 15.5%. The case of women
is slightly more complex since the drop has been slower. Women experience careers that are more erratic than men and must retire later to accumulate the required number of quarters for a full pension. After a notable decline between 1980 and 1985, the
number of women working has tended to level off over the past ten years at 14% for those aged 60-64. The decrease in people
working is largely due to the drop in retirement age from 65 to 60 in 1983 for the basic scheme for salaried employees of the
private sector.
0
Source: Demographic projections
(main scenario: continued trend) Insee
Population aged 60 and over
The French population continues to grow:
In 2000, France’s population stood at around 59 million and the INSEE (National Institute for Statistics and Economic Studies)
expects it to keep on growing until 2040. The increase is not evenly distributed among age groups. In fact, the number of those
less than 20 is declining; a trend that should continue according to INSEE demographic projections. Conversely, the number of
those 60 and over has gained 4.5 points over the past 50 years. In 2050, it is expected to represent a third of the French population.
42
JANUARY 2003
JANUARY 2003
43
The life expectancy of an individual at age ‘x’ at date ‘t’ represents the number of years remaining to for him live, taking
into account the mortality conditions for each age of his life observed at this same date ‘t’. In other words, future progress
toward diminishing mortality are not taken into account when calculating life expectancy. The life expectancy of a male
infant born in 1980 was 70.2 years, that for one born in 1998 is 74.6 years.
Life-expectancy at age 35 according to socio-occupational category (in years)
Trends in life expectancy for men and women at birth from 1980 to 1998 (in years)
44.5
Executives &
Liberal professions
43
Farmers
80
79.4
78.4
70.2
82.3
82
82.2 (F)
Men
74.6
74.4
74.2
73.9
72.7
71.3
81.9
49
41.5
Craftsmen
and shopkeepers
40
Salaried employees
47.5
Workers
46
Total
47.5
Women
60
47.5
Intermediate
professions
42
80.9
49.5
48.5
F = Forecasts
38
40
40
50
20
0
Source: Old aged persons in the 1990’s
DREES, Survey & Analysis, N° 40,
November 1999
1980
1985
1990
1995
1996
1997
24.9
24.2
20
17.9
19
Men
Women
Life-expectancy varies in terms of socio-occupational category. It is women executives or members of the professions who, at
35, have the highest, 49.5 years.
At the other extreme are male workers who, at 35, have a life-expectancy of 38 years, 8.5 less than male executives, 8 years
less than women workers and 11.5 less than female executives.
25.1 (F)
Men
23
22.4
17.3
25.2
25
Source: Insee, 1999 social data
1998
Trends in life expectancy for men and women at age 60 from 1980 to 1998 (in years)
25
50
19.7
19.7
20
20
Women
F = Forecasts
15
10
5
0
November 1999
1980
1985
1990
1995
1996
1997
1998
We may observe that the life expectancy for men and women is rising regularly at the same rate. Moreover, whatever the year
of observation, the life expectancy for women is superior to that for men.
44
JANUARY 2003
JANUARY 2003
45
The life expectancy of an individual at age ‘x’ at date ‘t’ represents the number of years remaining to for him live, taking
into account the mortality conditions for each age of his life observed at this same date ‘t’. In other words, future progress
toward diminishing mortality are not taken into account when calculating life expectancy. The life expectancy of a male
infant born in 1980 was 70.2 years, that for one born in 1998 is 74.6 years.
Life-expectancy at age 35 according to socio-occupational category (in years)
Trends in life expectancy for men and women at birth from 1980 to 1998 (in years)
44.5
Executives &
Liberal professions
43
Farmers
80
79.4
78.4
70.2
82.3
82
82.2 (F)
Men
74.6
74.4
74.2
73.9
72.7
71.3
81.9
49
41.5
Craftsmen
and shopkeepers
40
Salaried employees
47.5
Workers
46
Total
47.5
Women
60
47.5
Intermediate
professions
42
80.9
49.5
48.5
F = Forecasts
38
40
40
50
20
0
November 1999
1980
1985
1990
1995
1996
1997
24.9
24.2
20
17.9
19
Men
Women
Life-expectancy varies in terms of socio-occupational category. It is women executives or members of the professions who, at
35, have the highest, 49.5 years.
At the other extreme are male workers who, at 35, have a life-expectancy of 38 years, 8.5 less than male executives, 8 years
less than women workers and 11.5 less than female executives.
25.1 (F)
Men
23
22.4
17.3
25.2
25
Source: Insee, 1999 social data
1998
Trends in life expectancy for men and women at age 60 from 1980 to 1998 (in years)
25
50
19.7
19.7
20
20
Women
F = Forecasts
15
10
5
0
November 1999
1980
1985
1990
1995
1996
1997
1998
We may observe that the life expectancy for men and women is rising regularly at the same rate. Moreover, whatever the year
of observation, the life expectancy for women is superior to that for men.
44
JANUARY 2003
JANUARY 2003
45
3 .2.NUM BER OF PENSI ONERS
3.3.THE STANDARD OF LIVING OF PENSIONERS
In 1999, there were an estimated 12 million pensioners, of whom 600,000 benefited solely from a survivor pension (1).
Comparison of men and women pensioners according to occupation career
and the type of their retirement pension (in%)
3.3.1. Income of pensioners and changes in standard of living
Average monthly pension according to career and the type of pension in 1997 (in francs).
9,600
9,400
CAREERS AND PENSIONS
Full career
Direct entitlement pension only
Direct entitlement plus survivor’s pension
Partial career
Never worked (survivor’s pension only)
TOTAL
MEN
WOMEN
84
81
3
16
15
1
0
34
24
10
57
33
24
9
100
100
8,800
8,000
7,300
6,000
Sample: Pensioners, aged 65 and over,
born in metropolitan France and
beneficiaries of a direct or survivor
pension.
Source: ‘Pensioners in 1999’,
Survey & Analysis N° 88, DREES,
October 2000
84% of retired men in 1997 had completed a full career in comparison with 34% of their female counterparts. A cumulated
pension of direct rights and survivor benefits concerned 34% of women and only 4% of men. Moreover, 9% of women pensioners
in 1997 had never worked and received solely a survivor pension.
6,200
6,000
5,900
5,500
4,800
4,000
2,800
2,000
0
Direct pension
only
Direct + survivor
pension
Direct pension
only
Direct + survivor
pension
PARTIAL CAREER
FULL CAREER
Source: Low and minimum pensions
DREES, Surveys and analysis, N° 82, September 2000
Comparison of men and women pensioners according to the gross amount of their monthly pension,
direct rights and survivor benefits (in%)
0
TOTAL
Men
Women
Changes in the rate of upgrading of CNAVTS (Social Security general scheme) ,
ARRCO and AGIRC pensions compared to changes in the consumer price index
100
Men
Less than 5,000 francs
25
48
10,000 francs and over
Women
31
7
DREES, Survey & Analysis N°82,
September 2000
Mainly women receive low pensions:
Over half of women pensioners received less than 5000 francs per months in 1997, while only 1/4 of men were in a similar
situation. 48% received between 5000 and 10,000 francs of gross monthly pension. The figures can be explained by the low
percentage of women pensioners having competed a full career.
(1)
GROWTH
OF POINT VALUE
FOR ARRCO**
SCHEMES
GROWTH
OF AGIRC
POINT
VALUES
RATE
OF INCREASE
OF PRICE***
INDEX
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001*
3.43%
2.77%
2.32%
2.24%
1.94%
1.48%
2.23%
1.27%
1.11%
1.19%
0.50%
2.20%
4.11%
3.72%
3.49%
2.14%
0.52%
0.80%
1.76%
0.60%
1.10%
0.97%
0.83%
1.63%
3.00%
4.11%
2.89%
2.72%
0.00%
0.00%
1.50%
0.50%
0.00%
0.40%
0.00%
1.72%
3.37%
3.21%
2.42%
2.08%
1.67%
1.73%
1.97%
1.23%
0.66%
0.54%
1.60%
1.58%
* temporary rates
** as of 1999, concerns value of ARRCO point
*** as of 2000, not including tobacco
According to ‘Pensioners in 1999’, Survey & Analysis N° 88, DREES, October 2000
46
UPGRADING
RATE OF
CNAVTS
PENSIONS
5,001 to 9,999 francs
27
62
YEAR
JANUARY 2003
Source: ARRCO
JANUARY 2003
47
3 .2.NUM BER OF PENSI ONERS
3.3.THE STANDARD OF LIVING OF PENSIONERS
In 1999, there were an estimated 12 million pensioners, of whom 600,000 benefited solely from a survivor pension (1).
Comparison of men and women pensioners according to occupation career
and the type of their retirement pension (in%)
3.3.1. Income of pensioners and changes in standard of living
Average monthly pension according to career and the type of pension in 1997 (in francs).
9,600
9,400
CAREERS AND PENSIONS
Full career
Partial career
Never worked (survivor’s pension only)
TOTAL
MEN
WOMEN
84
81
3
16
15
1
0
34
24
10
57
33
24
9
100
100
8,800
8,000
7,300
6,000
Sample: Pensioners, aged 65 and over,
born in metropolitan France and
beneficiaries of a direct or survivor
pension.
Source: ‘Pensioners in 1999’,
Survey & Analysis N° 88, DREES,
October 2000
84% of retired men in 1997 had completed a full career in comparison with 34% of their female counterparts. A cumulated
pension of direct rights and survivor benefits concerned 34% of women and only 4% of men. Moreover, 9% of women pensioners
in 1997 had never worked and received solely a survivor pension.
6,200
6,000
5,900
5,500
4,800
4,000
2,800
2,000
0
Direct pension
only
Direct + survivor
pension
Direct pension
only
Direct + survivor
pension
PARTIAL CAREER
FULL CAREER
DREES, Surveys and analysis, N° 82, September 2000
Comparison of men and women pensioners according to the gross amount of their monthly pension,
direct rights and survivor benefits (in%)
0
TOTAL
Men
Women
Changes in the rate of upgrading of CNAVTS (Social Security general scheme) ,
ARRCO and AGIRC pensions compared to changes in the consumer price index
100
Men
Less than 5,000 francs
25
48
10,000 francs and over
Women
31
7
DREES, Survey & Analysis N°82,
September 2000
Mainly women receive low pensions:
Over half of women pensioners received less than 5000 francs per months in 1997, while only 1/4 of men were in a similar
situation. 48% received between 5000 and 10,000 francs of gross monthly pension. The figures can be explained by the low
percentage of women pensioners having competed a full career.
(1)
GROWTH
OF POINT VALUE
FOR ARRCO**
SCHEMES
GROWTH
OF AGIRC
POINT
VALUES
RATE
OF INCREASE
OF PRICE***
INDEX
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001*
3.43%
2.77%
2.32%
2.24%
1.94%
1.48%
2.23%
1.27%
1.11%
1.19%
0.50%
2.20%
4.11%
3.72%
3.49%
2.14%
0.52%
0.80%
1.76%
0.60%
1.10%
0.97%
0.83%
1.63%
3.00%
4.11%
2.89%
2.72%
0.00%
0.00%
1.50%
0.50%
0.00%
0.40%
0.00%
1.72%
3.37%
3.21%
2.42%
2.08%
1.67%
1.73%
1.97%
1.23%
0.66%
0.54%
1.60%
1.58%
* temporary rates
** as of 1999, concerns value of ARRCO point
*** as of 2000, not including tobacco
According to ‘Pensioners in 1999’, Survey & Analysis N° 88, DREES, October 2000
46
UPGRADING
RATE OF
CNAVTS
PENSIONS
5,001 to 9,999 francs
27
62
YEAR
JANUARY 2003
Source: ARRCO
JANUARY 2003
47
Levels of social taxes for retirement from 1995 to 2001 (in%)
7
General scheme
7
2.8
0.5
0.5
0.5
0.5
0.5
6
2.6
5
2.6
CRDS
(Welfare debt repayment levy)
2.6
0.5
1.4
0.5
0.5
2.4
basic schemes
5
CSG (Special social levy)
0.5
0.5
0.5
CRDS
0.5
Health contribution
2
2.4
2.4
2.4
2.4
3.4
6.2
6.2
6.2
2.4
6.2
1
Source: ‘Pensions in 1999’ DREES,
Surveys and analysis n°88, October 2000
and Observatoire des Retraites
3.8
1
1
1
1
0.5
0.5
0.5
0.5
7
3.6
6
3.6
3.6
2.4
4
3
0.5
0
2.4
2.4
6.2
6.2
6.2
6.2
01/01/95 01/01/96 01/02/96 01/03/96 01/01/97 01/01/98 01/01/99 01/01/00 01/01/01
6
CANCAVA (Craftsmen)
and ORGANIC
5
supplementary schemes
0.5
0.5
0.5
(Shopkeepers and industrialists)
4
0.5
3
2.4
2.4
3.4
0.5
0.5
2.4
2.4
CRDS
2
0.5
2
2.4
2.4
0.5
Health contribution
0.5
2.4
7
ARRCO - AGIRC
CRDS
5
2.4
1
01/01/95 01/01/96 01/02/96 01/03/96 01/01/97 01/01/98 01/01/99 01/01/00 01/01/01
CANCAVA (Craftsmen)
and ORGANIC
Health contribution
2
3.4
6.2
6.2
6.2
2.4
3.4
6.2
6.2
6.2
6.2
1
6.2
1
0
01/01/95 01/01/96 01/02/96 01/03/96 01/01/97 01/01/98 01/01/99 01/01/00 01/01/01
01/01/95 01/01/96 01/02/96 01/03/96 01/01/97 01/01/98 01/01/99 01/01/00 01/01/01
7
0.5
6
5
3.4
0.5
3.4
3
3
0
3.4
4
4
0
3.4
6
0.5
3.05
2.65
2.65
0.5
0.5
0.5
2.8
2.65
CRDS
4
0.5
3
Civil service
0.5
0.5
2.4
2.4
Allowing for their low level after the war, pensions in the private sector were exempt from social security contributions until
June 30, 1980, while those of employees of the public sector were subject to contributions.
The CSG and the CRDS have become a substitute for health insurance contributions. Non taxable pensions are exempt from
such contributions. For other pensions, the increase in contributions over the past few years have contributed to a drop in
spending power.
Health contribution
2
2.4
2.4
3.4
6.2
6.2
6.2
6.2
1
0
48
01/01/95 01/01/96 01/02/96 01/03/96 01/01/97 01/01/98 01/01/99 01/01/00 01/01/01
JANUARY 2003
JANUARY 2003
49
Levels of social taxes for retirement from 1995 to 2001 (in%)
7
General scheme
7
2.8
0.5
0.5
0.5
0.5
0.5
6
2.6
5
2.6
CRDS
2.6
0.5
1.4
0.5
0.5
2.4
basic schemes
5
0.5
0.5
0.5
CRDS
0.5
Health contribution
2
2.4
2.4
2.4
2.4
3.4
6.2
6.2
6.2
2.4
6.2
1
3.8
1
1
1
1
0.5
0.5
0.5
0.5
7
3.6
6
3.6
3.6
2.4
4
3
0.5
0
2.4
2.4
6.2
6.2
6.2
6.2
01/01/95 01/01/96 01/02/96 01/03/96 01/01/97 01/01/98 01/01/99 01/01/00 01/01/01
6
CANCAVA (Craftsmen)
and ORGANIC
5
supplementary schemes
0.5
0.5
0.5
4
0.5
3
2.4
2.4
3.4
0.5
0.5
2.4
2.4
CRDS
2
0.5
2
2.4
2.4
0.5
Health contribution
0.5
2.4
7
ARRCO - AGIRC
CRDS
5
2.4
1
01/01/95 01/01/96 01/02/96 01/03/96 01/01/97 01/01/98 01/01/99 01/01/00 01/01/01
CANCAVA (Craftsmen)
and ORGANIC
Health contribution
2
3.4
6.2
6.2
6.2
2.4
3.4
6.2
6.2
6.2
6.2
1
6.2
1
0
01/01/95 01/01/96 01/02/96 01/03/96 01/01/97 01/01/98 01/01/99 01/01/00 01/01/01
01/01/95 01/01/96 01/02/96 01/03/96 01/01/97 01/01/98 01/01/99 01/01/00 01/01/01
7
0.5
6
5
3.4
0.5
3.4
3
3
0
3.4
4
4
0
3.4
6
0.5
3.05
2.65
2.65
0.5
0.5
0.5
2.8
2.65
CRDS
4
0.5
3
Civil service
0.5
0.5
2.4
2.4
Allowing for their low level after the war, pensions in the private sector were exempt from social security contributions until
June 30, 1980, while those of employees of the public sector were subject to contributions.
The CSG and the CRDS have become a substitute for health insurance contributions. Non taxable pensions are exempt from
such contributions. For other pensions, the increase in contributions over the past few years have contributed to a drop in
spending power.
Health contribution
2
2.4
2.4
3.4
6.2
6.2
6.2
6.2
1
0
48
01/01/95 01/01/96 01/02/96 01/03/96 01/01/97 01/01/98 01/01/99 01/01/00 01/01/01
JANUARY 2003
JANUARY 2003
49
Trends in gross purchasing power of the main pensions from 1995 to 1999 (in%)
1.0
Changes in net purchasing power for various type of pensioners
from 1995 to 1999 (in%)
General scheme*
0.8
0.7
0.6
0.5
0.5
0.5
0.3
0.4
0.0
- 0.3
PENSION
TYPE
AGIRC
Civil servants
- 0.1
0.0
- 0.2
ARRCO
- 0.6
- 0.5
- 0.6
- 0.8
- 0.7
- 0.7
-1.0
* The basic schemes for shopkeepers,
craftsmen and farm workers
are aligned with the General scheme.
-1.5
-1.7
1995
1996
1997
1998
1999
FIVE YEAR
AVERAGE
Private sector non-executive pensioner
- 0.4
- 1.6
- 1.5
0.4
0.6
- 0.5
Executive pensioner
- 0.8
- 1.8
- 1.7
0.1
0.4
- 0.7
Former farm worker
- 0.4
- 1.5
- 1.5
0.4
0.6
- 0.5
Craftsman (basic pension)
- 0.3
- 0.2
- 0.2
- 0.6
0.5
- 0.2
Shopkeeper (basic pension)
- 0.3
- 0.2
- 0.1
0.0
0.7
0.0
Retired civil servant
0.8
- 1.4
- 1.6
0.5
0.6
- 0.2
Source: Pensions in 1999 DREES, Surveys and analysis n°88,
October 2000
Surveys and analysis n° 88, October 2000
- 2.0
1995
1996
1997
1998
1999
To understand the trend in pensions paid, an increase in social levies must be taken into account, as well as the upgrading of the
pensions of the various systems while resorting to typical cases. In fact, changes in the purchasing power of a retired executive
reflects changes in the three pensions provided by the General Scheme, ARRCO and AGIRC.
Average over 5 years (1995-1999)
Changes in income variance among pensioners from 1970 to 1995
0.2
0.1
General scheme*
ARRCO
0.2
0.1
0.0
YEAR
AGIRC
INTER DECILE RATIO OF DISPOSABLE
INCOME FOR PENSIONERS
1970
4
- 0.1
1975
3.75
- 0.2
1980
3.15
- 0.3
1985
3
1990
3.25
1995
3.24
Civil servants
- 0.1
- 0.7
- 0.4
- 0.5
Source: Income tax studies, 1970, 1975,
1980, 1985, 1990 and 1995, Insee
- 0.6
- 0.7
50
JANUARY 2003
Stable variance among pensioners:
The inter decile ratio is the ratio between the income of the 10th most favoured households and the income of the 10th
least favoured. In 1970, the 10% of pensioners the most well-off disposed of income 4 times higher than that of the 10%
poorest. In 1995, the ratio was 3.24%.
JANUARY 2003
51
Trends in gross purchasing power of the main pensions from 1995 to 1999 (in%)
1.0
Changes in net purchasing power for various type of pensioners
from 1995 to 1999 (in%)
General scheme*
0.8
0.7
0.6
0.5
0.5
0.5
0.3
0.4
0.0
- 0.3
PENSION
TYPE
AGIRC
Civil servants
- 0.1
0.0
- 0.2
ARRCO
- 0.6
- 0.5
- 0.6
- 0.8
- 0.7
- 0.7
-1.0
* The basic schemes for shopkeepers,
craftsmen and farm workers
are aligned with the General scheme.
-1.5
-1.7
1995
1996
1997
1998
1999
FIVE YEAR
AVERAGE
Private sector non-executive pensioner
- 0.4
- 1.6
- 1.5
0.4
0.6
- 0.5
Executive pensioner
- 0.8
- 1.8
- 1.7
0.1
0.4
- 0.7
Former farm worker
- 0.4
- 1.5
- 1.5
0.4
0.6
- 0.5
Craftsman (basic pension)
- 0.3
- 0.2
- 0.2
- 0.6
0.5
- 0.2
Shopkeeper (basic pension)
- 0.3
- 0.2
- 0.1
0.0
0.7
0.0
Retired civil servant
0.8
- 1.4
- 1.6
0.5
0.6
- 0.2
Source: Pensions in 1999 DREES, Surveys and analysis n°88,
October 2000
- 2.0
1995
1996
1997
1998
1999
To understand the trend in pensions paid, an increase in social levies must be taken into account, as well as the upgrading of the
pensions of the various systems while resorting to typical cases. In fact, changes in the purchasing power of a retired executive
reflects changes in the three pensions provided by the General Scheme, ARRCO and AGIRC.
Average over 5 years (1995-1999)
0.2
0.1
General scheme*
ARRCO
0.2
0.1
0.0
YEAR
AGIRC
INTER DECILE RATIO OF DISPOSABLE
INCOME FOR PENSIONERS
1970
4
- 0.1
1975
3.75
- 0.2
1980
3.15
- 0.3
1985
3
1990
3.25
1995
3.24
Civil servants
- 0.1
- 0.7
- 0.4
- 0.5
Source: Income tax studies, 1970, 1975,
1980, 1985, 1990 and 1995, Insee
- 0.6
- 0.7
50
JANUARY 2003
Stable variance among pensioners:
The inter decile ratio is the ratio between the income of the 10th most favoured households and the income of the 10th
least favoured. In 1970, the 10% of pensioners the most well-off disposed of income 4 times higher than that of the 10%
poorest. In 1995, the ratio was 3.24%.
JANUARY 2003
51
3.3.2. Comparison of the replacement rate for the private
and public sectors
3.3.3. Comparison of standard of living of pensioners
and active workers
The average replacement rate represents the amount of retirement salary expressed as a percentage of a reference
salary. In this survey, the reference salary corresponds to the average of the total salaries of a career in order to take
into account the non-linear features of careers in the private sector.
Comparison of standard of living of active workers and pensioners in 1995
(in francs per unit of consumption per year)
100,000
Average gross replacement rate per bracket of annual average salary for careers
in the private and public sectors in 1997 (in%)
105,000
103,900
93,800
Active workers
Pensioners
80,000
77,500
Over
350,000
48.8
From 250,000
to 350,000
62.6
67.3
From 200,000
to 250,000
67.3
From 150,000
to 200,000
40,000
57.2
20,000
60.3
63.6
From 100,000
to 150,000
65.6
60,000
51.9
0%
67.8
0%
in francs
Source: Economic and statistics n°328,
Insee 1999
Average standard
of living excluding estate
Average standard
of living overall
65.3
Less than
100,000
69.6
Source: 1995 Insee family budget survey,
adjusted investment yields
0
Average replacement rate
for civil servants
(including bonuses)
Identical standards of living:
In 1995, the disposable yearly income of active workers, not including estate, was higher than that of pensioners;
representing 93,800 francs for active workers and 77,500 francs for pensioners. On average, pensioners disposed of investment
income (26,400 francs) two times greater than that of active workers (11,200 francs). In terms of total disposable income
(standard of living), the two categories had a similar average standard of living (ratio of 0.99).
for the private sector
Nearly 54% of former employees of the public sector receive a remuneration of 150,000 to 250,000 per year. Their average
replacement rate represents 67%. Around 55% of former employees of the private sector receive a salary of 100,000 to
200,000 francs yearly. Their replacement rate is between 63.6% to 65.3%.
52
JANUARY 2003
JANUARY 2003
53
3.3.2. Comparison of the replacement rate for the private
and public sectors
3.3.3. Comparison of standard of living of pensioners
and active workers
The average replacement rate represents the amount of retirement salary expressed as a percentage of a reference
salary. In this survey, the reference salary corresponds to the average of the total salaries of a career in order to take
into account the non-linear features of careers in the private sector.
Comparison of standard of living of active workers and pensioners in 1995
(in francs per unit of consumption per year)
100,000
Average gross replacement rate per bracket of annual average salary for careers
in the private and public sectors in 1997 (in%)
105,000
103,900
93,800
Active workers
Pensioners
80,000
77,500
Over
350,000
48.8
From 250,000
to 350,000
62.6
67.3
From 200,000
to 250,000
67.3
From 150,000
to 200,000
40,000
57.2
20,000
60.3
63.6
From 100,000
to 150,000
65.6
60,000
51.9
0%
67.8
0%
in francs
Source: Economic and statistics n°328,
Insee 1999
Average standard
of living excluding estate
Average standard
of living overall
65.3
Less than
100,000
69.6
Source: 1995 Insee family budget survey,
adjusted investment yields
0
for civil servants
(including bonuses)
Identical standards of living:
In 1995, the disposable yearly income of active workers, not including estate, was higher than that of pensioners;
representing 93,800 francs for active workers and 77,500 francs for pensioners. On average, pensioners disposed of investment
income (26,400 francs) two times greater than that of active workers (11,200 francs). In terms of total disposable income
(standard of living), the two categories had a similar average standard of living (ratio of 0.99).
for the private sector
Nearly 54% of former employees of the public sector receive a remuneration of 150,000 to 250,000 per year. Their average
replacement rate represents 67%. Around 55% of former employees of the private sector receive a salary of 100,000 to
200,000 francs yearly. Their replacement rate is between 63.6% to 65.3%.
52
JANUARY 2003
JANUARY 2003
53
The poverty level in 1997 corresponded to disposable income of 3,500 francs for a single person (1 unit of consumption)
and to 7,350 francs for a couple with two young children (2.1 units of consumption). A household is considered poor if
its disposable income per unit of consumption is under the poverty level.
Standard of living of households according to age in 1994 (in francs)
0
60,000
30,000
30 to 39
78,000
73,000
90,000
120,000
Total standard of living
Standard of living exclusive
of investments
Changes in the poverty rate from 1970 to 1997 (in%)
92,500
40 to 49
30
85,500
28
Pensioners
Salaried employees
50 to 59
25
99,000
92,000
Total
20
18
15,8
123,000
60 to 69
15
107,000
13
11
70 to 79
10
108,000
87,000
5
80 and over
4,8
7,5
7,5
4,94
7
7
6,5
6,3
5
4,7
99,000
79,000
Source: The monetary poverty
of households from 1970 to 1997, Insee
0
Source: 1995 Insee family budget survey
The standard of living of households grew in relation to age to peak at the 60-69 age bracket and then decrease. If investment
income is included, a household at 80 or more, retains a standard of living identical to that of a household at 50-59 and is
superior to that of many younger households.
54
4,8
8,8
4,97
JANUARY 2003
1970
1975
1979
1984
1990
1997
The poverty rate of the retired population dropped from 28% in 1970 to 4.7% in 1997. There are three reasons for the
phenomena: higher pension rights for recent generations of pensioners, upward revaluation of pensions and an increase in the
number of working women. As for salaried employees, the poverty rate, which remained stable up until 1990, has increased slightly
over the past decade due to a deterioration of the labour market.
JANUARY 2003
55
The poverty level in 1997 corresponded to disposable income of 3,500 francs for a single person (1 unit of consumption)
and to 7,350 francs for a couple with two young children (2.1 units of consumption). A household is considered poor if
its disposable income per unit of consumption is under the poverty level.
Standard of living of households according to age in 1994 (in francs)
0
60,000
30,000
30 to 39
78,000
73,000
90,000
120,000
Total standard of living
Standard of living exclusive
of investments
Changes in the poverty rate from 1970 to 1997 (in%)
92,500
40 to 49
30
85,500
28
Pensioners
Salaried employees
50 to 59
25
99,000
92,000
Total
20
18
15,8
123,000
60 to 69
15
107,000
13
11
70 to 79
10
108,000
87,000
5
80 and over
4,8
7,5
7,5
4,94
7
7
6,5
6,3
5
4,7
99,000
79,000
Source: The monetary poverty
of households from 1970 to 1997, Insee
0
Source: 1995 Insee family budget survey
The standard of living of households grew in relation to age to peak at the 60-69 age bracket and then decrease. If investment
income is included, a household at 80 or more, retains a standard of living identical to that of a household at 50-59 and is
superior to that of many younger households.
54
4,8
8,8
4,97
JANUARY 2003
1970
1975
1979
1984
1990
1997
The poverty rate of the retired population dropped from 28% in 1970 to 4.7% in 1997. There are three reasons for the
phenomena: higher pension rights for recent generations of pensioners, upward revaluation of pensions and an increase in the
number of working women. As for salaried employees, the poverty rate, which remained stable up until 1990, has increased slightly
over the past decade due to a deterioration of the labour market.
JANUARY 2003
55
Trends in the number of those 85 and over in the population
2,000,000
2,100,000
Comparison of aged persons according to type of lodging in 1999
BREAKDOWN IN %
TOTAL
(in thousands)
AT HOME
HOME
FOR AGED
RETIREMENT
HOME
OTHER
FORM OF
COMMUNITY
60 to 64
98.3
0.2
0.4
1.1
2,726
65 to 69
98.2
0.3
0.7
0.8
2,758
70 to 74
97.4
0.6
1.2
0.8
2,489
75 to 79
95.3
1.2
2.4
1.1
2,166
80 to 84
90.2
2.4
5.7
1.7
915
AGE
85 to 89
90 and over
1,500,000
1,000,000
80.4
3v9
12.8
2.9
922
64
4.6
26.1
5.3
502
94.3
1.1
3.3
1.3
12,478
1,000,000
1.8%
of the population
2.5%
of the population
3.3%
of the population
1995
2010
2020
0
Source: Ined
TOTAL
Source: 1999 population census, Insee
A large number of even very aged persons live at home:
The large majority of persons over 60 live at home. Retirement homes concern mainly those over 80, sheltering 12.8% of those
85-89 and 26% of those over 90.
One papy boom may hide another.
2005 will witness the arrival at ‘retirement age’ (60) of the populous generations born after the last World War as well as the
arrival at ‘dependency age’ (85) of the generations born after the trough following World War 1.
3.3.5. Dependency
Number of aged dependent persons
Dependency is characterised by a pronounced need for aid in performing the basic acts of life and on a permanent
basis. Dependent persons require aid in their daily life as well as medical care.1
Proportion of aged dependent persons of 75 and over
AGE
MEN
WOMEN
1990
2000
1990
2000
75
5.00%
4.59%
5.20%
4.13%
80
7.00%
6.34%
10.30%
7.81%
85
15.00%
11.31%
22.00%
15.53%
90
30.10%
23.24%
37.00%
28.03%
94 and over
43.10%
33.67%
49.00%
38.74%
Sample: aged persons in institutions
and at home
Definition of dependence:
Colvez, groups 1 and 2
◆ Group 1:
persons bedridden or confined to chairs
◆ Group 2:
persons aided for basic tasks
Source: 1999: Insee, Health survey 2000:
DREES, HID survey
YEAR
TOTAL
1990
670,000
2000
600,000
2020
1,200,000
Source: Handicap, disability
and dependence survey, Insee 1999
The number of aged dependent persons has declined over the past 10 years thanks to the double effect of a levelling off in the
number of very aged persons and a drop in dependency.
After 2003, the number of very aged persons (85 and over) will increase sharply as will the number of aged dependent
persons, either at the same rate (1,200,000 in 2020), or less if progress in the war on dependency continues (1,000,000 in 2020).
The dependency rate increases with age:
At an equal age, the dependency rate is higher for women than for men. But the gap tends to narrow. It must be remembered
that aged women most often live alone: 84% of surviving spouses are women. For every age, the percentage of aged dependent
persons decreased from 1990 and 2000. We remain self-sufficient longer.
1)
Surveys and analysis, n°74, July 2000, DREES
56
JANUARY 2003
JANUARY 2003
57
2,000,000
2,100,000
Comparison of aged persons according to type of lodging in 1999
BREAKDOWN IN %
TOTAL
(in thousands)
AT HOME
HOME
FOR AGED
RETIREMENT
HOME
OTHER
FORM OF
COMMUNITY
60 to 64
98.3
0.2
0.4
1.1
2,726
65 to 69
98.2
0.3
0.7
0.8
2,758
70 to 74
97.4
0.6
1.2
0.8
2,489
75 to 79
95.3
1.2
2.4
1.1
2,166
80 to 84
90.2
2.4
5.7
1.7
915
AGE
85 to 89
90 and over
1,500,000
1,000,000
80.4
3v9
12.8
2.9
922
64
4.6
26.1
5.3
502
94.3
1.1
3.3
1.3
12,478
1,000,000
1.8%
of the population
2.5%
of the population
3.3%
of the population
1995
2010
2020
0
Source: Ined
TOTAL
Source: 1999 population census, Insee
A large number of even very aged persons live at home:
The large majority of persons over 60 live at home. Retirement homes concern mainly those over 80, sheltering 12.8% of those
85-89 and 26% of those over 90.
One papy boom may hide another.
2005 will witness the arrival at ‘retirement age’ (60) of the populous generations born after the last World War as well as the
arrival at ‘dependency age’ (85) of the generations born after the trough following World War 1.
3.3.5. Dependency
Dependency is characterised by a pronounced need for aid in performing the basic acts of life and on a permanent
basis. Dependent persons require aid in their daily life as well as medical care.1
AGE
MEN
WOMEN
1990
2000
1990
2000
75
5.00%
4.59%
5.20%
4.13%
80
7.00%
6.34%
10.30%
7.81%
85
15.00%
11.31%
22.00%
15.53%
90
30.10%
23.24%
37.00%
28.03%
94 and over
43.10%
33.67%
49.00%
38.74%
Sample: aged persons in institutions
and at home
Definition of dependence:
Colvez, groups 1 and 2
◆ Group 1:
persons bedridden or confined to chairs
◆ Group 2:
persons aided for basic tasks
Source: 1999: Insee, Health survey 2000:
DREES, HID survey
YEAR
TOTAL
1990
670,000
2000
600,000
2020
1,200,000
Source: Handicap, disability
and dependence survey, Insee 1999
The number of aged dependent persons has declined over the past 10 years thanks to the double effect of a levelling off in the
number of very aged persons and a drop in dependency.
After 2003, the number of very aged persons (85 and over) will increase sharply as will the number of aged dependent
persons, either at the same rate (1,200,000 in 2020), or less if progress in the war on dependency continues (1,000,000 in 2020).
The dependency rate increases with age:
At an equal age, the dependency rate is higher for women than for men. But the gap tends to narrow. It must be remembered
that aged women most often live alone: 84% of surviving spouses are women. For every age, the percentage of aged dependent
persons decreased from 1990 and 2000. We remain self-sufficient longer.
1)
Surveys and analysis, n°74, July 2000, DREES
56
JANUARY 2003
JANUARY 2003
57
3.4.OLD AGE MINIMUM
THE RECEPTION OF AGED DEPENDENT PERSONS
Total number of places offered in specialised establishments or sections at end 1996: 647,000.
Occupation rate:
◆ Medical-social establishments:
95 %
◆ Wards for long-term stays in hospitals:
97 %
◆ Profit making organisations:
90,5 %
The demand seems to be satisfied today, but important investments are needed to meet future requirements.
Persons 65 and over with resources of less than 3,742 francs per month on January 1, 2001, may ask for an old age
minimum. This allowance allows them to reach a level of income equal to 3,655 francs per month as of January 1, 2001.
When the allowance is considered a supplement to a retirement pension, it is paid to the pensioner by his pension scheme.
In cases where the person does not benefit from a retirement pension and receives the allowance as a substitute, it
is paid by the “Service de l’allocation spéciale vieillesse” (SASV).
Breakdown according to career and sex of pensioners receiving pensions
less than 3,400 francs per month (in%)
THE FINANCIAL COVERAGE OF DEPENDENCY
Should dependency be considered as part of health insurance or as a distinct risk. Public authorities have been looking
for a way to reduce financing dependency through hospitalisation (health insurance) and to develop services adapted to
the task (wards for long stays, medical services in retirement homes, etc.) where the cost is assumed by the individual
concerned, raising a problem of solvability for the applicant.
MEN
Partial career
8
for farmers
◆ PSD
2
Full career (37.5 years or more)
Set up by a law of January 24, 1997, the Specific Dependency Allowance is intended for persons aged 60 or more.
Financed and awarded according to criteria proper to each department, it is means tested and represented a maximum
5,882 francs per month in 2001.
9
for farmers
7
Total (men)
17
for farmers
Number of PSD Beneficiaries
9
WOMEN
Partial career
YEAR
BENEFICIARIES
1997
23,000
1998
86,000
1999
117,000
In March 2001
134,000
57
for farmers
9
15
for farmers
13
Never worked (survivor’s pension)
Source: Surveys and analysis n° 125,
July 2001, DREES
11
for wives of farmers
1
Total (women)
83
for farmers (or wives of farmers)
23
◆ The APA
The Personalised Self-Reliance Allowance replaced the PSD as of January 1, 2002. Financed by the departments, the
basic health insurance schemes and a fraction of CSG, it is awarded according to criteria determined on a national level
and without reference to means. It should concern 800,000 persons (the PSD initially concerned 300,000).
Total (men and women)
100
32
Drees, Surveys and analysis, N°82,
September 2000
In 1997, nearly 3 out of 10 pensioners aged 65 or more received a pension less than the old age minimum (3,400 francs in 1997).
Low pensions concerned 41% women and 11% men.
58
JANUARY 2003
JANUARY 2003
59
3.4.OLD AGE MINIMUM
THE RECEPTION OF AGED DEPENDENT PERSONS
Total number of places offered in specialised establishments or sections at end 1996: 647,000.
Occupation rate:
◆ Medical-social establishments:
95 %
◆ Wards for long-term stays in hospitals:
97 %
◆ Profit making organisations:
90,5 %
The demand seems to be satisfied today, but important investments are needed to meet future requirements.
Persons 65 and over with resources of less than 3,742 francs per month on January 1, 2001, may ask for an old age
minimum. This allowance allows them to reach a level of income equal to 3,655 francs per month as of January 1, 2001.
When the allowance is considered a supplement to a retirement pension, it is paid to the pensioner by his pension scheme.
In cases where the person does not benefit from a retirement pension and receives the allowance as a substitute, it
is paid by the “Service de l’allocation spéciale vieillesse” (SASV).
Breakdown according to career and sex of pensioners receiving pensions
less than 3,400 francs per month (in%)
THE FINANCIAL COVERAGE OF DEPENDENCY
Should dependency be considered as part of health insurance or as a distinct risk. Public authorities have been looking
for a way to reduce financing dependency through hospitalisation (health insurance) and to develop services adapted to
the task (wards for long stays, medical services in retirement homes, etc.) where the cost is assumed by the individual
concerned, raising a problem of solvability for the applicant.
MEN
Partial career
8
for farmers
◆ PSD
2
Set up by a law of January 24, 1997, the Specific Dependency Allowance is intended for persons aged 60 or more.
Financed and awarded according to criteria proper to each department, it is means tested and represented a maximum
5,882 francs per month in 2001.
9
for farmers
7
Total (men)
17
for farmers
Number of PSD Beneficiaries
9
WOMEN
Partial career
YEAR
BENEFICIARIES
1997
23,000
1998
86,000
1999
117,000
In March 2001
134,000
57
for farmers
9
15
for farmers
13
Never worked (survivor’s pension)
Source: Surveys and analysis n° 125,
July 2001, DREES
11
for wives of farmers
1
Total (women)
83
for farmers (or wives of farmers)
23
◆ The APA
The Personalised Self-Reliance Allowance replaced the PSD as of January 1, 2002. Financed by the departments, the
basic health insurance schemes and a fraction of CSG, it is awarded according to criteria determined on a national level
and without reference to means. It should concern 800,000 persons (the PSD initially concerned 300,000).
100
32
Drees, Surveys and analysis, N°82,
September 2000
In 1997, nearly 3 out of 10 pensioners aged 65 or more received a pension less than the old age minimum (3,400 francs in 1997).
Low pensions concerned 41% women and 11% men.
58
JANUARY 2003
JANUARY 2003
59
Out of 100 persons receiving the old age minimum in 1997, 17 were men and 83 were women. Among the 17 men, 8 had
not worked a full career and 9 had. More than half were farmers. The majority of women (57%) receiving the old age minimum
had not completed a full career. Here again, farmers (or wives of farmers) represented more than a third of the women (23 out of
83) receiving the old age minimum in 1997.
Breakdown of beneficiaries of the supplementary allowance for the old age minimum
according to scheme in 1998
PENSION SCHEMES
Number of beneficiaries of the supplementary allowance for the old age minimum
per age in 1998 (in%)
23
375,700
49
MSA (Farmers)
231,000
30
MSA (farm workers)
36,900
5
19,200
3
CANCAVA (Craftsmen)
19,100
3
6,000
1
500
0
7,700
1
64,200
8
760,300
100
Special schemes
15
Special allotment beneficiaries (without pension)
15
%
CAVIMAC (Clergy)
20
BENEFICIARIES
Total
DREES, Surveys and analysis, N°82,
September 2000
11
10
7
5
4
5
September 2000
2
0
60 to 64
65 to 69
70 to 74
75 to 79
80 to 44
85 to 89
90 and over
In 1998, there were 760,300 beneficiaries of the supplementary allowance for the old age minimum. 8% of the beneficiaries
received no retirement pension. Out of 100 beneficiaries of the old age minimum, 49 belonged to the basic retirement scheme
and 30 were farm workers.
Since its creation in 1956, the number of beneficiaries of the old age minimum has continued to decrease. From 1993 to 1998,
the drop was 26%.
On December 31, 1998, beneficiaries of the supplementary allowance for the old age minimum represented 6% of those 60
or more. Only 2% of those 60-64 were concerned in comparison with 23% of those 90 or more.
60
JANUARY 2003
JANUARY 2003
61
Out of 100 persons receiving the old age minimum in 1997, 17 were men and 83 were women. Among the 17 men, 8 had
not worked a full career and 9 had. More than half were farmers. The majority of women (57%) receiving the old age minimum
had not completed a full career. Here again, farmers (or wives of farmers) represented more than a third of the women (23 out of
83) receiving the old age minimum in 1997.
Breakdown of beneficiaries of the supplementary allowance for the old age minimum
according to scheme in 1998
PENSION SCHEMES
Number of beneficiaries of the supplementary allowance for the old age minimum
per age in 1998 (in%)
23
375,700
49
MSA (Farmers)
231,000
30
MSA (farm workers)
36,900
5
19,200
3
CANCAVA (Craftsmen)
19,100
3
6,000
1
500
0
7,700
1
64,200
8
760,300
100
Special schemes
15
Special allotment beneficiaries (without pension)
15
%
CAVIMAC (Clergy)
20
BENEFICIARIES
Total
September 2000
11
10
7
5
4
5
September 2000
2
0
60 to 64
65 to 69
70 to 74
75 to 79
80 to 44
85 to 89
90 and over
In 1998, there were 760,300 beneficiaries of the supplementary allowance for the old age minimum. 8% of the beneficiaries
received no retirement pension. Out of 100 beneficiaries of the old age minimum, 49 belonged to the basic retirement scheme
and 30 were farm workers.
Since its creation in 1956, the number of beneficiaries of the old age minimum has continued to decrease. From 1993 to 1998,
the drop was 26%.
On December 31, 1998, beneficiaries of the supplementary allowance for the old age minimum represented 6% of those 60
or more. Only 2% of those 60-64 were concerned in comparison with 23% of those 90 or more.
60
JANUARY 2003
JANUARY 2003
61
EQUILIBRIUM OF SCHEMES
Demographic dependency rates of basic schemes in 2000
Demographic dependency rates of some supplementary schemes in 2000
BENEFITS
Average gross replacement rate per bracket of annual average salary for careers in the private sector
Average gross replacement rate per bracket of annual average salary for careers in the public sector
Average monthly pension according to career
Average monthly pension according to the type of pension
Changes in the rate of upgrading of CNAVTS, ARRCO, AGIRC pensions compared to changes in the consumer price index
Old age benefits paid by the basic schemes
Old age benefits of supplementary schemes
52
52
47
47
47
9
17
23
10
18
22
GROUP FUNDING
Growth of contributions collected by provident institutions for funded pensions
Levels of retirement insurance premiums from 1996 to 2000
Retirement savings according to annual household income
Retirement savings holdings according to age
Retirement savings rate according to social category
Retirement savings rate for additional supplementary pensions according to social category
Retirement savings rate for voluntary supplementary pensions according to social category
25
25
25
32
31
31
32
32
COMPENSATION AND TRANSFERS AMONG SCHEMES
ARRCO/AGIRC financial solidarity
Compensation among schemes for salaried employees
Compensation among special schemes
Demographic compensation between salaried and non-salaried employees
18
11
12
12
CONTRIBUTIONS
8
Contribution rates for basic schemes
Contribution rates for supplementary schemes
Gross contributions to basic schemes
Gross contributions to supplementary schemes
16
7
15
CONTRIBUTORS
Apparent female occupational life expectancy from 1896 to 1997
Apparent male occupational life expectancy from 1896 to 1997
Growth of the active working population from 1962 to 2001
Number of people over 60 working according to sex
Occupational status of the population aged 50 to 59 in 2000
Rate of activity for the female population aged 50 to 59
Rate of activity for the male population aged 50 to 59
Variations in the rate of unemployment from 1995 to 2001
30
30
29
28
27
42
35
34
33
27
LEVELS OF SOCIAL TAXES FOR RETIREMENT
10
Number of contributors to basic schemes
Number of contributors to supplementary schemes
18
DEPENDENCY
Levels of social taxes for Arrco- Agirc pensions from 1995 to 2001
Levels of social taxes for Cancava and Organic pensions (basic schemes) from 1995 to 2001
Levels of social taxes for Cancava and Organic pensions (supplementary schemes) from 1995 to 2001
Levels of social taxes for civil service pensions from 1995 to 2001
Levels of social taxes for general scheme pensions from 1995 to 2001
48
49
49
48
48
57
Number of PSD beneficiaries
The reception of aged dependent persons
58
56
58
57
EARLY RETIREMENT
Number of annual entries to ASFNE, CATS, Partial early retirement and ARPE plans from 1993 to 2000
Number of ASFNE, Partial early retirement and ARPE recipients according to sex in 2000
Number of ASFNE, Partial early retirement and ARPE recipients from 1993 to 2000
Socio-occupational features of ARPE beneficiaries
Socio-occupational features of ASFNE beneficiaries
Socio-occupational features of Partial early retirement beneficiaries
39
JANUARY 2003
62
LABOUR MARKET
LIFE EXPECTANCY
Life expectancy at age 35 according to socio-occupational category
Trends in life expectancy for men at age 60 from 1980 to 1998
Trends in life expectancy for men at birth from 1980 to 1998
Trends in life expectancy for women at age 60 from 1980 to 1998
Trends in life expectancy for women at birth from 1980 to 1998
45
44
44
44
44
41
39
40
40
40
JANUARY 2003
63
EQUILIBRIUM OF SCHEMES
Demographic dependency rates of basic schemes in 2000
Demographic dependency rates of some supplementary schemes in 2000
BENEFITS
Average gross replacement rate per bracket of annual average salary for careers in the private sector
Average gross replacement rate per bracket of annual average salary for careers in the public sector
Average monthly pension according to career
Average monthly pension according to the type of pension
Changes in the rate of upgrading of CNAVTS, ARRCO, AGIRC pensions compared to changes in the consumer price index
Old age benefits paid by the basic schemes
Old age benefits of supplementary schemes
52
52
47
47
47
9
17
23
10
18
22
GROUP FUNDING
Growth of contributions collected by provident institutions for funded pensions
Levels of retirement insurance premiums from 1996 to 2000
Retirement savings according to annual household income
Retirement savings holdings according to age
Retirement savings rate according to social category
Retirement savings rate for additional supplementary pensions according to social category
Retirement savings rate for voluntary supplementary pensions according to social category
25
25
25
32
31
31
32
32
COMPENSATION AND TRANSFERS AMONG SCHEMES
ARRCO/AGIRC financial solidarity
Compensation among schemes for salaried employees
Compensation among special schemes
Demographic compensation between salaried and non-salaried employees
18
11
12
12
CONTRIBUTIONS
8
Contribution rates for basic schemes
Contribution rates for supplementary schemes
Gross contributions to basic schemes
Gross contributions to supplementary schemes
16
7
15
CONTRIBUTORS
Apparent female occupational life expectancy from 1896 to 1997
Apparent male occupational life expectancy from 1896 to 1997
Growth of the active working population from 1962 to 2001
Number of people over 60 working according to sex
Occupational status of the population aged 50 to 59 in 2000
Rate of activity for the female population aged 50 to 59
Rate of activity for the male population aged 50 to 59
Variations in the rate of unemployment from 1995 to 2001
30
30
29
28
27
42
35
34
33
27
LEVELS OF SOCIAL TAXES FOR RETIREMENT
10
Number of contributors to basic schemes
Number of contributors to supplementary schemes
18
DEPENDENCY
Levels of social taxes for Arrco- Agirc pensions from 1995 to 2001
Levels of social taxes for Cancava and Organic pensions (basic schemes) from 1995 to 2001
Levels of social taxes for Cancava and Organic pensions (supplementary schemes) from 1995 to 2001
Levels of social taxes for civil service pensions from 1995 to 2001
Levels of social taxes for general scheme pensions from 1995 to 2001
48
49
49
48
48
57
Number of PSD beneficiaries
The reception of aged dependent persons
58
56
58
57
EARLY RETIREMENT
Number of annual entries to ASFNE, CATS, Partial early retirement and ARPE plans from 1993 to 2000
Number of ASFNE, Partial early retirement and ARPE recipients according to sex in 2000
Number of ASFNE, Partial early retirement and ARPE recipients from 1993 to 2000
Socio-occupational features of ARPE beneficiaries
Socio-occupational features of ASFNE beneficiaries
Socio-occupational features of Partial early retirement beneficiaries
39
JANUARY 2003
62
LABOUR MARKET
LIFE EXPECTANCY
Life expectancy at age 35 according to socio-occupational category
Trends in life expectancy for men at age 60 from 1980 to 1998
Trends in life expectancy for men at birth from 1980 to 1998
Trends in life expectancy for women at age 60 from 1980 to 1998
Trends in life expectancy for women at birth from 1980 to 1998
45
44
44
44
44
41
39
40
40
40
JANUARY 2003
63
OLD AGE MINIMUM
Breakdown according to career of pensioners receiving pensions less than 3,400 francs per month
Breakdown according to sex of pensioners receiving pensions less than 3,400 francs per month
Breakdown of beneficiaries of the supplementary allowance for the old age minimum according to schemes
Number of beneficiaries of the supplementary allowance for the old age minimum per age
OUTLINE OF RETIREMENT IN FRANCE
59
59
61
60
4
PENSIONERS
Comparison of aged persons according to type of lodging
Comparison of men and women according to occupation career
Comparison of men and women according to the gross amount of their monthly pension
Comparison of men and women according to the type of their retirement pension
Comparison of the average age of leaving employment
Comparison of the average age of pension settlement
Number of pensioners of the basic schemes
Number of pensioners of the supplementary schemes
The Observatoire des Retraites Prize
56
46
46
46
36
36
10
18
To take part, papers should be sent in french version
before December 31 of each prize’s year.
Taking into account, the limited interest accorded retirement by Universities and research organisations, the Observatoire des Retraites has instituted a prize to encourage work in this area.
Theses, dissertations, research papers, etc. should contribute to knowledge of pension systems in
fields such as history, sociology, economics, law and political science. The rules of the prize of the
Observatoire des Retraites set out guidelines for the candidates to follow.
The jury consists of academics and pension-industry professionals, some of whom are involved in
education. In addition to considering the intrinsic interest of the issues covered by the submissions,
the jury will be looking in particular for originality and fresh angles of approach.
The Observatoire des Retraites wishes to express its gratitude for all of the papers received and
was particularly pleased to award the following 2001 prizes :
POPULATION STRUCTURE
43
Trends for the population aged 50 to 59 from 1989 to 2009
33
57
◆ Prize of the Observatoire des Retraites (4,500 euros): Christel Mandin for her study dealing
European Union and pension reforms in the area of political sociology and public policies at the
“Sciences-Politiques” school of Paris.
◆ Special prize (1,500 euros): Cécile Musset for her comparison between wages and pensions of
civil servants and private sector employees in the framework of economic demography at the
POVERTY
Changes in the poverty rate for pensioners from 1970 to 1997
Changes in the poverty rate for salaried employees from 1970 to 1997
55
55
RESERVES OF THE BASIC AND SUPPLEMENTARY SCHEMES
21
Forecast for development of a reserve fund
Payments to the reserve fund
The amount of financial assets of supplementary schemes
14
13
19
STANDARD OF LIVING
Average growth of gross purchasing power of the main pensions over 5 years (1995-1999)
Average growth of net purchasing power for various type of pensioners over 5 years (1995-1999)
Changes in net purchasing power for various type of pensioners from 1995 to 1999
Comparison of standard of living of active workers and pensioners
Comparison of standard of living of active workers and pensioners excluding estate
Standard of living of households according to age
Trends in gross purchasing power of the main pensions from 1995 to 1999
50
51
51
51
53
53
54
50
LA LETTRE DE L’OBSERVATOIRE DES RETRAITES
Editor in chief: Arnauld d’YVOIRE
This edition was prepared by Nora OUDIR, in charge of economic studies at Caen University, for a DESS diploma,
with the help of Laëtitia Mathias and Elise Prats, in charge of surveys for the Observatoire des Retraites
Observatoire des Retraites, 16-18 rue Jules César - 75012 Paris, France
Tél : 33 1 71 72 12 00 - Website: www.observatoire-retraites.org
Designed and produced by NAVIS (ISSN: 1269-6765)
64
JANUARY 2003
OLD AGE MINIMUM
Breakdown according to career of pensioners receiving pensions less than 3,400 francs per month
Breakdown according to sex of pensioners receiving pensions less than 3,400 francs per month
Breakdown of beneficiaries of the supplementary allowance for the old age minimum according to schemes
Number of beneficiaries of the supplementary allowance for the old age minimum per age
OUTLINE OF RETIREMENT IN FRANCE
59
59
61
60
4
PENSIONERS
Comparison of aged persons according to type of lodging
Comparison of men and women according to occupation career
Comparison of men and women according to the gross amount of their monthly pension
Comparison of men and women according to the type of their retirement pension
Comparison of the average age of leaving employment
Comparison of the average age of pension settlement
Number of pensioners of the basic schemes
Number of pensioners of the supplementary schemes
The Observatoire des Retraites Prize
56
46
46
46
36
36
10
18
To take part, papers should be sent in french version
before December 31 of each prize’s year.
Taking into account, the limited interest accorded retirement by Universities and research organisations, the Observatoire des Retraites has instituted a prize to encourage work in this area.
Theses, dissertations, research papers, etc. should contribute to knowledge of pension systems in
fields such as history, sociology, economics, law and political science. The rules of the prize of the
Observatoire des Retraites set out guidelines for the candidates to follow.
The jury consists of academics and pension-industry professionals, some of whom are involved in
education. In addition to considering the intrinsic interest of the issues covered by the submissions,
the jury will be looking in particular for originality and fresh angles of approach.
The Observatoire des Retraites wishes to express its gratitude for all of the papers received and
was particularly pleased to award the following 2001 prizes :
POPULATION STRUCTURE
43
Trends for the population aged 50 to 59 from 1989 to 2009
33
57
◆ Prize of the Observatoire des Retraites (4,500 euros): Christel Mandin for her study dealing
European Union and pension reforms in the area of political sociology and public policies at the
◆ Special prize (1,500 euros): Cécile Musset for her comparison between wages and pensions of
civil servants and private sector employees in the framework of economic demography at the
POVERTY
Changes in the poverty rate for pensioners from 1970 to 1997
Changes in the poverty rate for salaried employees from 1970 to 1997
55
55
RESERVES OF THE BASIC AND SUPPLEMENTARY SCHEMES
21
Forecast for development of a reserve fund
Payments to the reserve fund
The amount of financial assets of supplementary schemes
14
13
19
STANDARD OF LIVING
Average growth of gross purchasing power of the main pensions over 5 years (1995-1999)
Average growth of net purchasing power for various type of pensioners over 5 years (1995-1999)
Changes in net purchasing power for various type of pensioners from 1995 to 1999
Comparison of standard of living of active workers and pensioners
Comparison of standard of living of active workers and pensioners excluding estate
Standard of living of households according to age
Trends in gross purchasing power of the main pensions from 1995 to 1999
50
51
51
51
53
53
54
50
LA LETTRE DE L’OBSERVATOIRE DES RETRAITES
Editor in chief: Arnauld d’YVOIRE
This edition was prepared by Nora OUDIR, in charge of economic studies at Caen University, for a DESS diploma,
with the help of Laëtitia Mathias and Elise Prats, in charge of surveys for the Observatoire des Retraites
Observatoire des Retraites, 16-18 rue Jules César - 75012 Paris, France
Tél : 33 1 71 72 12 00 - Website: www.observatoire-retraites.org
Designed and produced by NAVIS (ISSN: 1269-6765)
64
JANUARY 2003
Observatoire des Retraites,
16-18 rue Jules César - 75012 Paris, France
Tél : 33 1 71 72 12 00
Website : www.observatoire-retraites.org

pensions in france - Observatoire des retraites

Transcription

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