Additional Pension Scheme for Civil Servants
Régime additionnel de la fonction publique, RAFP
Coverage
Mandatory insurance
- Persons insured in the pension scheme for civil and military servants and the old age pension scheme for local civil servants.
Financing
General finances
- Fully funded schemes (régime par répartition provisionnée).
Contribution rates
- The contributions are shared between the employer (5%) and the civil servant (5%).
- The basis for the calculation of the contribution is limited to 20% of the total annual gross income of the civil servant.
Taxation of contribution payments
- Tax exemptions for contribution payments.
Administration
- The scheme is administrated by the Deposit and Consignment Office (Caisse des dépôts et des consignations).
- The financial management of the scheme is conferred to a special establishment – the établissement public gestionnaire du régime (ERAFP).
- The ERAFP is led by a board composed both of the employers and the representatives of the employed persons.
- The administration operates under the supervision of the state.
Qualifying Conditions
- The person must have the right to benefit from the basic public scheme which is either the pension scheme for civil and military servants or the pension scheme for local civil servants (i.e. retirement age is either 62 or 57).
Benefits
Pension benefits
- The benefit is determined by a system of points.
- Dependent on the points acquired during the working career, pension benefits are either paid as a lump sum (< 4599 points), as an annuity (> 5125 points), or both (> 4598 and < 5126).
- The benefit will be paid separately on two occasions, in a way that will increase the possibility of the person to acquire an annuity.
- Adjustments: the annuity is readjusted every year.
Taxation and social security contributions
- Benefits are subject to income tax (for benefits paid as capital, it is possible to choose between a lump sum taxation of 7.5% and the ordinary rules).
- Pension benefits are subject to CSG, CRDS and CASA.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Mandatory insurance
- Persons insured in the pension scheme for civil and military servants and the old age pension scheme for local civil servants.
General finances
- Fully funded schemes (régime par répartition provisionnée).
Contribution rates
- The contributions are shared between the employer (5%) and the civil servant (5%).
- The basis for the calculation of the contribution is limited to 20% of the total annual gross income of the civil servant.
Taxation of contribution payments
- Tax exemptions for contribution payments.
- The scheme is administrated by the Deposit and Consignment Office (Caisse des dépôts et des consignations).
- The financial management of the scheme is conferred to a special establishment – the établissement public gestionnaire du régime (ERAFP).
- The ERAFP is led by a board composed both of the employers and the representatives of the employed persons.
- The administration operates under the supervision of the state.
- The person must have the right to benefit from the basic public scheme which is either the pension scheme for civil and military servants or the pension scheme for local civil servants (i.e. retirement age is either 62 or 57).
Pension benefits
- The benefit is determined by a system of points.
- Dependent on the points acquired during the working career, pension benefits are either paid as a lump sum (< 4599 points), as an annuity (> 5125 points), or both (> 4598 and < 5126).
- The benefit will be paid separately on two occasions, in a way that will increase the possibility of the person to acquire an annuity.
- Adjustments: the annuity is readjusted every year.
Taxation and social security contributions
- Benefits are subject to income tax (for benefits paid as capital, it is possible to choose between a lump sum taxation of 7.5% and the ordinary rules).
- Pension benefits are subject to CSG, CRDS and CASA.
Legal Basis: Decree of 18 June 2004 on the Additional Pension Scheme for Public Servants (Décret n°2004-569 du 18 juin 2004 relatif à la retraite additionnelle de la fonction publique).