Retraite / Pension (2010)
In France like in the UK, most of contributions are deducted at source on the payslip itself. However in France , many different types of schemes relating to compulsory or non compulsory pension exist and the way to contribute vary as per the legal status of the worker : employee, self employed, civil servants, legal director, commercial agent ….By consequence, various official bodies and Insurance companies are financially in charge of managing these plans : CNAV the biggest one, RSI, MSA…
In the UK, despite NI deductions, complementary pension schemes are mostly managed through employer/employee Bank debits , not appearing on the payroll.
Basic State Pension : this scheme is based on mutual management of social welfare amongst workers( legal reference being “ordonnance” dated 19.10.1945). Contributions are based on “Tranche A” (2011 : up to 2946 Euros / month) of the Gross salary for employees or on income ( up to Tranche A) declared once a year for other categories of workers. Most of these funds are managed by CNAV. Rates are fixed by Law , being 8,30% for employers and 6,65% for employees. In 2009, in France, workers can apply for retirement & full pension allowance when they reach 65 years old and if they have cumulated a minimum of 161 quarters of contributions. If French individuals wish to get retired earlier, they may do it from 60 years old, but the pension allowance will be disminished based on number of quarters contributed.
Compulsory Complementary pension schemes since 1973 : these schemes are also based on mutual management of social welfare amongst workers.
ARRCO : additional compulsory complementary scheme paid by “agents de maitrise” & “non-cadres” & “cadres” – the 3 existing categories of employees in France. Rates are 4.5 % for employers & 3% for employees, also calculated on gross salary up to “Tranche A”.
AGIRC : additional compulsory complementary scheme paid only by “agents de maitrise” & “cadres”, the upper level of employees in France, usually earning higher rate of salaries. Rates are fixed by Law and are equal to 12.6 % for employers and 7.7 % for employees, calculating on gross salary above “Tranche A”. There is a fixed fee instead of rates applicable if gross salary is below the limit of “Tranche A”.
Non Compulsory Pension schemes : they are based on a “Pay-As-You-Go” & funded pension plans and require individual informations to be set up. To get a quote and conditions of withdrawal of the money you need to contact a French Financial Adviser. Please do get informations first on Corporate schemes such as PERCO, Article 83, Article 39 & Plan Epargne Entreprise (PEE). Also check Individual schemes, such as PERP, Loi Madelin & Life Insurance schemes, some of them are also Income Tax Deductible.