Are premiums taken into account for the retirement of public officials?

Verified 01 September 2023 - Legal and Administrative Information Directorate (Prime Minister)

Yes, your premiums are taken into account for retirement. However, they are taken into account differently depending on who you are civil servant or contractual.

Official

Your premiums are taken into account only for your retirement complementary.

As a civil servant, you receive 2 retirement pensions:

  • One basic pension of the SRE: titleContent if you are a State or CNRACL: titleContent if you are a territorial or hospital official
  • And one supplementary pension of the Supplementary Public Service Pension Plan (PSPP)

Your premiums are used as the basis for PFRA contributions in the limit of 20% the amount of your index treatment.

Example :

If your raw index treatment is €21,600 per year (€1,800 per month) and the amount of your €5,400 gross per year (€450 per month), you only contribute to the PFRA on €4,320 per year (€360 per month), i.e 20% of €21,600.

Differential amount of premiums (€5,400 - €4,320 = €1,080) does not give rise to any contributions and is not taken into account for retirement.

The PFRA is a point pension plan, meaning that your contributions are converted in retirement points.

When you retire, these pension points are converted into a pension amount.

Reminder

Your contributions to the SRE: titleContent or to the CNRACL: titleContent are calculated based on your index treatment and your new index enhancement (NBI) if you are receiving this top-up.

Your pension is calculated on the basis of the index salary received for at least 6 months before your retirement. And NBI claim periods qualify for a pension supplement.

Contractual

You contribute to Social Security Pension Insurance (as a private sector employee) on all elements of your compensation.

So your bonuses are taken into account in the calculation of the remuneration used as a basis for calculating your contributions.

And when you retire, your retirement pension is calculated on the basis of the average gross wages of the most advantageous 25 years of your career.

To determine the highest annual gross wages, all compensation elements are taken into account.

You also contribute to the company's supplementary pensionIrcantec: titleContent. Again, all elements of your compensation are taken into account in determining your contribution base.

The Ircantec is a point pension plan, meaning that your contributions are converted in retirement points.

When you retire, these pension points are converted into a pension amount.

Thus, your premiums are taken into account for the calculation of your basic retirement from the Social Security Pension Insurance and for the calculation of your supplementary retirement from Ircantec.