Pension reform and reversion : the winners, the losers

In the future system of universal points, the method of calculating survivors ' pensions will significantly evolve. Decryption of a sensitive issue.

This is confirmed : in the future system of pension points, the calculation of survivors ' pensions will be based on the standard of living of the couple before the death of one of the two spouses, and not on conditions hitherto specific to each plan. This new way of doing business will "create a unique device that will end the current inequality regime", the report says that Jean-Paul Delevoye, the high commissioner to the pension reform, submitted to the Prime minister in mid-July.

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Who will be affected by the reform ?

today, 4.4 million people - mostly women - (1) - receive a portion of the pension earned prior to their death, by their spouse or ex-spouse(e) ret(e) or a part of the pension which they would have been entitled (if they died while they were not yet retired). Prior to the implementation of the reform (expected in 2025), these conditions will apply always.

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A future age of entitlement are the same for all

The payment of a reversion, now depends on various parameters. These criteria include : the age of the widow or of the widower. The reversion is open as early as 55 years old in the basic schemes. Same thing to the Agirc-Arrco (supplementary pension) for deaths occurring since 1st January last, except if you have two dependent children : there is no minimum age. There must be 60 years of age in most of the other complementary schemes (for example, those of accountants, physicians, liberals...). For the officials of the State or territorial communities, there is no age requirement.

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According to the plans, there are also thresholds of resources and conditions non-remarriage to reach out to a survivor's pension. For example, in the general scheme, it is not necessary to have the resources in annual gross in excess of 20 862 euros for a single person and 33 379 euros for a couple (there are no conditions of non-remarriage for benefit). Conversely, in the complementary schemes, it does not take into account the resources of the survivor, but it must not be remarried to be entitled to the reversion.

Tomorrow, according to the report the right to a survivor's pension will be open as of age 62 for all. Much as the officials will lose.

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A rate calculation single

the percentage of The reversion, that is to say, the fraction of the retirement pension of the deceased which can be attributed to his surviving spouse, is also a source of major distortions between pension schemes.

The most generous as the Agirc-Arrco, and the number of the complementary schemes of the liberal professional (one of the experts-accountants, consultants, physiotherapists (for example) transfer 60% of these rights. For the basic plans (such as employees in the private sector, the agricultural sector, liberal professionals, for example), this rate is 54%. It is, however, only 50% if the deceased was an official of the State or under contract to the public service.

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Tomorrow, these different rates, depending on the rights acquired by the deceased person disappear to leave the place at one and the same mode of calculation. It will take into account 70% of the total of the pension rights of the couple before the death.

Example : the retirement of Jean (ex-employee in the private sector) is currently 2 600 € (1000 € for the basic pension + 1600 € pension Agirc-Arrco) and that of Mary of 2000 € (800 € basic pension +1200 € of pension Agirc-Arrco).

If John dies today, Mary will not receive any reversion of the basic pension (because their revenue exceeds the thresholds), but she would be 960 € reversion Agirc-Arrco (60% x 1600 €).

If Marie dies, Jean will be 720 € reversion Agirc-Arrco (60% x 1200 €).

If this is the same couple retiring in 2030 (after the reformation) and gets exactly the same pension (2600€ + 2000€), the first death, the survivor's pension that will be paid has for objective to allow Mary or John to retain 70% of their previous income, or 3220 euro (70% x 4600€).

No condition of resources is required if one relies on the report of Jean-Paul Delevoye. If John dies first, Mary will collect 1220€ (3220€ - 2000€ of own pension), more than with the rules of today. On the other hand, if Mary dies first, John will collect 620€ reversion (3220€ - 2600€ of own pension), or less than today.

married couples exclusive beneficiaries of the survivor

The question was repeatedly raised : should we or not "open" the reversion to unmarried couples, that is to say, in a civil partnership or cohabiting, especially if they have children in common ? The answer provided by the report of Jean-Paul Delevoye is unequivocal : "the right of reversion to be reserved, as now, to married couples, since this right is directly linked to the principle of solidarity between spouses". Here, therefore, there will be neither winners, nor losers.

The minimum number of years demariage in the existing regimes of civil servants in particular, is going to disappear

the balance of any account at the time of divorce

This is a novelty that has been made during consultations by the CFDT and FO. Today, even after a divorce, the ex-spouse(s)have the right to a survivor's pension, possibly pro rata if there has been different marriages. This will be finished tomorrow. At the time of the divorce, the family court judge should take account of the rights to retirement benefits accrued by each spouse in the compensatory allowance which he shall determine the amount.

Therefore, in the event of remarriage later, the future spouse will be able to claim a reversion, to the tune of 70% of the income of the new couple,without having to share with a first spouse.

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(1) Source : The pensioners and the pensions, editing 2019, Drees (Directorate for research, studies, evaluation and statistics).