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Retirement in the private sector: redemption of quarters

Verified 21 April 2023 - Legal and Administrative Information Directorate (Prime Minister)

Want to buy back quarters to improve your retirement? We present you the main possibilities of redemption.

Quarter buybacks allow you to voluntarily pay contributions to ensure that periods in which you did not contribute for retirement are ultimately taken into account when you retire with Social Security Pension Insurance.

In particular, you can buy back the following periods:

  • Higher years of study
  • Internships in company from 15 March 2015 in the framework of higher education
  • Incomplete years for which you do not have 4 pension insurance quarters posted (validated) by Pension Insurance

Other life situations may result in voluntary payment of contributions.

Graduate and incomplete years can also be redeemed with the Arco-Agric Supplementary Retirement.

Which periods of study are involved?

The periods of study which may be redeemed must have been completed in one of the following institutions:

  • Higher education institution
  • Higher Technical School
  • Graduate school
  • Preparatory class at a major school
  • High school post-baccalaureate class

These periods of study must have given rise to a diploma.

Admission to an advanced school or preparatory class for an advanced school is equivalent to obtaining a diploma.

Periods of higher education completed in one of the following countries may also be redeemed:

What conditions do you need to meet for the purchase of years of higher education?

You can apply to buy back your years of study if you are at least 20 years old and under 67.

You must not have applied for your retirement pension from Pension Insurance.

To be able to redeem and validate your years of study at Pension Insurance, the Pension Insurance must be 1re fund to which you contributed after your studies.

How are study periods counted for retirement?

The redemption request is taken into account for an entire number of quarters.

Any study period of 90 consecutive days is considered to be equal to 1 quarter.

If the 90-day period extends over two successive years, it may be considered to have been completed in either of those years.

Each year can have only 4 quarters.

Only 12 quarters in total can be redeemed for the following reasons:

  • Higher years of study
  • Incomplete years for which you do not have 4 pension insurance quarters posted (validated) by Pension Insurance

What is the redemption of years of study for retirement?

You have 2 redemption possibilities.

To understand what these 2 redemption options are, you need to understand how your retirement pension is calculated.

Your Pension Insurance Superannuation is calculated based on 3 elements:

  1. Your average annual salary of your 25 best years
  2. The liquidation rate of your pension, which may be a maximum of 50% if you are entitled to a full rate pension.
    Retirement is granted at full rate if you leave between the ages of 62 and 67 with a fixed number of pension insurance quarters (this number varies depending on your year of birth) or if you retire at age 67 (regardless of the number of quarters of your pension insurance)
  3. Your number of pension insurance quarters in relation to the number of quarters of pension insurance required to qualify for a full rate pension

Your pension is calculated as follows:

Pension = Average Annual Salary x Rate x (Your number of pension insurance quarters / Number of pension insurance quarters required to qualify for a full rate pension)

For example, if you were born in 1960, you must have 167 quarters of pension insurance to qualify for a full-rate pension.

Example :

If you're retiring between 62 and 67 years with 167 quarters of pension insurance, you are entitled to a full pension rate equal to:

Pension = Average annual salary x 50% x (167 / 167), i.e. for an average annual salary of €3,000, a pension of €1,500 crude

Example :

If you're retiring at age 67 with less than 167 quarters of pension insurance (for example, only 158), you are also entitled to a full-rate pension equal to:

Pension = Average annual salary x 50% x (158 / 167), i.e. for an average annual salary of €3,000, a pension of €1,419.16 crude

Example :

If you retire between the ages of 62 and 67 without having 167 quarters of pension insurance, you are not entitled to a full pension. In this case, your pension is subject to a haircut, i.e. a reduction in the 50% 0.625 per missing quarter.

The number of missing quarters used is the most advantageous of the following:

  • Number of quarters between your retirement age and your 67 years
  • The number of quarters missing between your number of pension insurance quarters and the number of pension insurance quarters required to qualify for a full rate pension

For example, if you retire on the day of your 63rd birthday with 158 quarters:

  • The number of quarters between your starting age (63 years) and your 67 years is 16 (4 years)
  • The number of quarters missing between your number of pension insurance quarters and the number of pension insurance quarters required to qualify for a full rate pension is 9 (167 - 158). This more advantageous number is used.

Your rate is reduced to: 50% - (9 x 0.625) = 44.375%

Your pension is:

Pension = Average annual salary x 44.375% x (158 / 167), i.e. for an average annual salary of €3,000, a pension of €1,259.51 crude

When you buy back quarters, you have the choice between the following 2 options:

  • Either buy back quarters that will be taken into account only for the calculation of your rate
  • Either buy back quarters that will be taken into account at a time for the calculating your rate and for the calculating your number of pension insurance quarters

How do I apply for the redemption of my study years for retirement?

Before applying for a buyback, it is recommended that you perform a simulation of the cost of the buyback using the following simulator.

The cost of the buyback depends on the option you choose, your age (depending on whether you are over 30 or under) and your income in the last 12 months.

If, at the end of this simulation, you wish to submit a redemption request, download the proposed application form and send it to the address indicated to you.

Simulate the cost of a quarter buy-back to the general pension insurance scheme

Your Carsat: titleContent tells you whether the redemption conditions are met.

Failure to respond within 2 months of receiving your request will result in rejection of your request.

If your request is accepted, your Carsat sends you a document called Pension Payment Assessment, which indicates the amount to be paid.

This document is accompanied by a regularized career statement and a form called Payment Request Confirmation.

If the redemption of certain periods is refused, you will be informed of the reason for the refusal and of the means and time limits of appeal.

If you want to buy back all or part of the quarters authorized by your Carsat, you must return the form Confirmation of a payment request.

You must specify the following information:

  • Number of quarters you want to buy back
  • Buyback Option Selected
  • Conditions for payment of the pension payment

If the redemption concerns at least 2 quarters, you can choose to spread your payment by monthly deductions over 1 to 3 years.

If the redemption concerns at least 8 quarters, you can choose to spread your payment by monthly deductions over 1, 3 or 5 years.

Contributions made to validate the years of study are deductible from taxable income.

FYI  

If contributions are paid over more than one year, the amount outstanding shall be increased each year.

What are the periods involved?

The periods that can be redeemed are calendar years during which your professional activity did not allow you to validate 4 quarters at the Pension Insurance.

To find out if you have incomplete years, you can consult your career statement on your retirement account:

My Retirement Account

Your redemption request must be for an entire number of quarters.

Only 12 quarters in total can be redeemed for the following reasons:

  • Incomplete years
  • Higher years of study

Each year can have only 4 quarters.

What conditions do you need to meet for buying back incomplete years?

You can request the redemption of your incomplete years if you are at least 20 years old and under 67 years old.

You must not have applied for your retirement pension from Pension Insurance.

What is the buyback of incomplete years?

You have 2 redemption possibilities.

To understand what these 2 redemption options are, you need to understand how your retirement pension is calculated.

Your Pension Insurance Superannuation is calculated based on 3 elements:

  1. Your average annual salary of your 25 best years
  2. The liquidation rate of your pension, which may be a maximum of 50% if you are entitled to a full rate pension.
    Retirement is granted at full rate if you leave between the ages of 62 and 67 with a fixed number of pension insurance quarters (this number varies depending on your year of birth) or if you retire at age 67 (regardless of the number of quarters of your pension insurance)
  3. Your number of pension insurance quarters in relation to the number of quarters of pension insurance required to qualify for a full rate pension

Your pension is calculated as follows:

Pension = Average Annual Salary x Rate x (Your number of pension insurance quarters / Number of pension insurance quarters required to qualify for a full rate pension)

For example, if you were born in 1960, you must have 167 quarters of pension insurance to qualify for a full-rate pension.

Example :

If you're retiring between 62 and 67 years with 167 quarters of pension insurance, you are entitled to a full pension rate equal to:

Pension = Average annual salary x 50% x (167 / 167), i.e. for an average annual salary of €3,000, a pension of €1,500 crude

Example :

If you're retiring at age 67 with less than 167 quarters of pension insurance (for example, only 158), you are also entitled to a full-rate pension equal to:

Pension = Average annual salary x 50% x (158 / 167), i.e. for an average annual salary of €3,000, a pension of €1,419.16 crude

Example :

If you retire between the ages of 62 and 67 without having 167 quarters of pension insurance, you are not entitled to a full pension. In this case, your pension is subject to a haircut, i.e. a reduction in the 50% 0.625 per missing quarter.

The number of missing quarters used is the most advantageous of the following:

  • Number of quarters between your retirement age and your 67 years
  • The number of quarters missing between your number of pension insurance quarters and the number of pension insurance quarters required to qualify for a full rate pension

For example, if you retire on your 63rd birthday with 158 quarters:

  • The number of quarters between your starting age (63 years) and your 67 years is 16 (4 years)
  • The number of quarters missing between your number of pension insurance quarters and the number of pension insurance quarters required to qualify for a full rate pension is 9 (167 - 158). This more advantageous number is used.

Your rate is reduced to: 50% - (9 x 0.625) = 44.375%

Your pension is:

Pension = Average annual salary x 44.375% x (158 / 167), i.e. for an average annual salary of €3,000, a pension of €1,259.51 crude

When you buy back quarters, you have the choice between the following 2 options:

  • Or buy back quarters that will be taken into account only for the calculation of your rate
  • Or buy back quarters that will be taken into account at a time for the calculating your rate and for the calculating your number of pension insurance quarters

How do I apply to buy back incomplete years?

Before applying for a buyback, it is recommended that you perform a simulation of the cost of the buyback using the following simulator.

The cost of the buyback depends on the option you choose, your age (depending on whether you are over 30 or under) and your income in the last 12 months.

If, at the end of this simulation, you wish to submit a redemption request, download the proposed application form and send it to the address indicated to you.

Simulate the cost of a quarter buy-back to the general pension insurance scheme

Your Carsat: titleContent tells you whether the redemption conditions are met.

Failure to respond within 2 months of receiving your request will result in rejection of your request.

If your request is accepted, your Carsat sends you a document called Pension Payment Assessment, which indicates the amount to be paid.

This document is accompanied by a regularized career statement and a form called Payment Request Confirmation.

If the redemption of certain periods is refused, you will be informed of the reason for the refusal and of the means and time limits of appeal.

If you wish to redeem all or part of the quarters authorized by your Carsat, you must return the form confirming a payment request.

You must specify the following information:

  • Number of quarters you want to buy back
  • Buyback Option Selected
  • Conditions for payment of the pension payment

If the redemption concerns at least 2 quarters, you can choose to spread your payment by monthly deductions over 1 to 3 years.

If the redemption concerns at least 8 quarters, you can choose to spread your payment by monthly deductions over 1, 3 or 5 years.

Contributions made to validate incomplete years are deductible from taxable income.

FYI  

If contributions are paid over more than one year, the amount outstanding shall be increased each year.

What are the relevant probationary periods?

The probationary periods that can be redeemed are the probationary periods obligatory which you have completed during your studies in higher education.

All of the following conditions must be met:

  • The internship was completed as part of studies carried out in a higher education institution, a higher technical school, a higher school or a preparatory class for a higher school
  • The internship began after March 14, 2015
  • The internship resulted in a tripartite agreement between the educational institution, the host organization and you
  • The internship was carried out within the same organization (company, public administration, parliamentary or consultative assembly, association or any other host organization)
  • Its duration is equal to 2 months, consecutive or not, during the same school or university year
  • The internship resulted in the payment of a bonus

Please note

Periods of work placement for which you have signed an employment contract (and not a traineeship agreement) have given rise to pension contributions and are not covered by this arrangement.

How are probationary periods counted for retirement?

Any 2-month probationary period shall be validated by one quarter.

Where the probationary period extends over two successive years, it may be considered as having been completed in one or other of those years.

You can buy back a maximum of 2 quarters for internship.

What is the buy-back of internship periods in company?

In order to understand what the buy-back of internships is, you need to understand how your retirement pension is calculated.

Your Pension Insurance Superannuation is calculated based on 3 elements:

  1. Your average annual salary of your 25 best years
  2. The liquidation rate of your pension, which may be a maximum of 50% if you are entitled to a full rate pension.
    Retirement is granted at full rate if you leave between the ages of 62 and 67 with a fixed number of pension insurance quarters (this number varies depending on your year of birth) or if you retire at age 67 (regardless of the number of quarters of your pension insurance)
  3. Your number of pension insurance quarters in relation to the number of quarters of pension insurance required to qualify for a full rate pension

Your pension is calculated as follows:

Pension = Average Annual Salary x Rate x (Your number of pension insurance quarters / Number of pension insurance quarters required to qualify for a full rate pension)

For example, if you were born in 1960, you must have 167 quarters of pension insurance to qualify for a full-rate pension.

Example :

If you're retiring between 62 and 67 years with 167 quarters of pension insurance, you are entitled to a full pension rate equal to:

Pension = Average annual salary x 50% x (167 / 167), i.e. for an average annual salary of €3,000, a pension of €1,500 crude

Example :

If you're retiring at age 67 with less than 167 quarters of pension insurance (for example, only 158), you are also entitled to a full-rate pension equal to:

Pension = Average annual salary x 50% x (158 / 167), i.e. for an average annual salary of €3,000, a pension of €1,419.16 crude

Example :

If you retire between the ages of 62 and 67 without having 167 quarters of pension insurance, you are not entitled to a full pension. In this case, your pension is subject to a haircut, i.e. a reduction in the 50% 0.625 per missing quarter.

The number of missing quarters used is the most advantageous of the following:

  • Number of quarters between your retirement age and your 67 years
  • The number of quarters missing between your number of pension insurance quarters and the number of pension insurance quarters required to qualify for a full rate pension

For example, if you retire on the day of your 63rd birthday with 158 quarters:

  • The number of quarters between your starting age and your 67 years of age is 16 (4 years)
  • The number of quarters missing between your number of pension insurance quarters and the number of pension insurance quarters required to qualify for a full rate pension is 9 (167 - 158). This more advantageous number is used.

Your rate is reduced to: 50% - (9 x 0.625) = 44.375%

Your pension is:

Pension = Average annual salary x 44.375% x (158 / 167), i.e. for an average annual salary of €3,000, a pension of €1,259.51 crude

The quarters obtained by buying back the probationary periods are taken into account only for the calculation of your rate.

They are not taken into account when calculating your number of pension insurance quarters.

How do I apply to buy back the internship periods?

You must request the redemption of your internship periods within 2 years after the end date of the internship periods.

From 1er september 2023, you can request the redemption of your internship periods if you are at least 25 years old.

The redemption request is made using the following form:

Application for evaluation of repurchase of quarters for retirement for periods of internship in company during graduate studies

Attach the following documents to your application:

  • Copy of your ID
  • Copies of the probationary agreement and probationary certificate for each probationary period
  • If you have worked in a professional capacity during the years in which you completed your internship: a copy of your salary slips or any other proof of your activity

This form shall be forwarded to the competent Carsat as indicated in the package leaflet.

You can also submit your application online. To do this, log in to your personal space on the insurancertretrait.fr.

Your Carsat: titleContent tells you whether the redemption conditions are met.

Failure to respond within 2 months of receiving your request will result in rejection of your request.

In case of acceptance, your Carsat will tell you the amount of the redemption.

The amount of the redemption is fixed at €440 by quarter.

If the redemption is for more than one quarter, you can choose to spread your payment over several months.

Contributions paid to validate periods of internship in company are deductible from taxable income.

Who can help me?

Find who can answer your questions in your region

  • For further information on the redemption of quarters for the basic social security pension

    Pension insurance - 39 60

    To inform you about your situation, ask a question about your file, access personal information (follow-up of the file, latest payments, etc.).

    By telephone

    39,60 (or 09 71 10 39 60 from a mobile, a box or the foreigner)

    Free service + call price

    Monday to Friday from 8 am to 5 pm

  • For information on the redemption of additional pension points

    Agirc-Arco

    By telephone

    0 820 200 189

    €0.09 per minute + call price

    Monday to Friday from 8:30 am to 6 pm

    By E-mail

    Access via the contact form