This pension is paid by the CNAV, the Caisse Nationale d'Assurance Vieillesse, the French social security organization that manages the basic pension; or by the MSA, the agricultural social security, when the elderly person depends on the agricultural system.
[3] There are several conditions for receiving this pension: The amount of the ASPA is calculated by taking into account the difference between the required resource ceiling and your income.
The scheme aims to provide up to a maximum of 50% of the retiree's income during their 25 highest earning years up to the Plafond de la sécurité sociale (€41,136 annually in 2022).
[7] Management of the scheme is the responsibility of the Caisse Nationale d'Assurance Vieillesse (National Old-age Insurance Bank).
The mandatory state pension in France operates on a pay-as-you-go basis, redistributing contributions from current workers to retirees.
It aims to provide 50% of a retiree's income based on their 25 highest earning years, up to a set ceiling (€41,136 annually in 2022).
The overall contribution for old-age insurance, crucial for funding the pension system, is 15.45% of salaries up to the social security ceiling.
[10] The mandatory occupational pension is a defined contribution scheme that is mainly based on redistribution, but also has elements of investment.
There are several schemes, the main ones being: – Arrco (for non-managers) – Agirc (for managers) – Ircantec (for civil servants) One third of this contribution is paid by the employee and the other two-thirds by the employer.
In recent updates, as of 2023, the Pensions Reserve Fund (FRR) achieved a net performance of +9.68%, reflecting a solid recovery in stock markets and effective management amid fluctuating interest rates.
This performance is part of the FRR's broader strategy to secure the financial sustainability of France's PAYG pension system, which has significantly evolved from its initial funding via state privatizations.