Agirc - Arco

Supplementary pensions Agirc-Arrco: end of the 10% penalty for all residents

Publié le 18 octobre 2023 - Mise à jour le 04 avril 2024 - Directorate for Legal and Administrative Information (Prime Minister)

The temporary 10% penalty on Agirc-Arrco supplementary pensions ended on 1er April. This penalty had already been waived for retirees since the 1ster December 2023. provides an update on the bonus/malus and reminds you of the outline of the agreement signed in autumn 2023 by the supplementary pension organizations.

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Image 1Crédits: Robert Kneschke -

Introduced in 2019, the bonus/malus measure (also called higher and lower coefficients) was intended to encourage employees to work for another year, even if they fulfilled the legal conditions for leaving at full employment. Otherwise, a 10% penalty was applied to their pension for 3 years, with a small proportion benefiting from a reduced rate of 5%.

The malus ended in the fall for new retirees (retirement from 1er December 2023) and the measure applies since 1er april 2024 for those who retire before the 1er december 2023. This includes some 700,000 private sector retirees.

The bonus for policyholders who postpone their retirement from 2 to 4 years is maintained for those who are not affected by the pension reform.

An inflation-adjusted revaluation through 2026

The upgrading of supplementary pensions in 4.9% from 1er november 2023 affects more than 13 million pensioners. This increase corresponds to the level of inflation estimated by INSEE for 2023.

Moreover, the recovery over the period 2024-2026 will be indexed to the inflation rate, reduced by a sustainability factor of 0.40 percentage points depending on the evolution of the country's economic situation in the coming years.

The upgrading of basic pensions takes place once a year at 1er January, subject to exceptions.

Please note

the annual amount of supplementary pension for former private employees is calculated by multiplying the number of points earned during the career by the value of the point.

Removal of the solidarity coefficient (bonus/malus)

Coefficient of solidarity (malus)

The extension of the retirement age has led the social partners to abolish this coefficient in certain cases:

  • deletion for insured persons whose retirement takes effect from 1er December 2023;
  • deleting at 1er april 2024 for policyholders whose retirement takes effect before 1er December 2023.

Marginal coefficient (bonus)

This coefficient is maintained for insured persons who postpone their departure from 2 to 4 years and who are not affected by the pension reform.

It shall be deleted:

  • for insured persons born on or after 1er September 1961;
  • and whose retirement from the basic scheme took effect from 1er December 2023;

It shall continue to apply for persons qualifying for a pension under the basic scheme at the full rate before 1er December 2023, in the course of a calendar offset at the date of this Agreement from the liquidation of their retirement pension.

Application of employment-pension cumulation

The conditions for applying job-pension cumulation are changing with the pension reform. Previously, insured persons paid into employment and retirement without acquiring new rights. Now, if a pensioner resumes a professional activity, contributions generate new entitlements to the basic scheme (under certain conditions).

The Agirc-Arco agreement provides for a similar measure for supplementary retirement.

Since 1er January 2024, insured persons in full employment-pension may benefit from a new Agirc-Arrco pension (within the limit of the annual ceiling set by the Social Security).


compulsory supplementary pension schemes for private sector employees are managed by the social partners. They complement the basic social security system.

The Agirc-Arrco regime has been in existence since the 1er January 2019 and took over the rights and obligations of the Agirc and Arrco schemes. It is a pay-as-you-go, pay-as-you-go pension plan.

The Agirc-Arco funds collect contributions from employers and employees, calculate pension points and pay pensions.


the social partners of the Agirc-Arrco, mandated by the employers' and employees' organizations, negotiate every 4 years the rules governing the management of the supplementary private pension scheme. Negotiations in autumn 2024 resulted in an agreement running until 2026, which takes into account pension reform.