Farmers’ Old Age Pension Scheme
Mutualité sociale agricole, MSA
Coverage
Mandatory insurance
- Entrepreneurs working in the agricultural sector determined by Article L722-1 seq. of the Rural Code, who have exceeded a minimum size of cultivated area or a minimum time of working or who have reached a certain amount of income.1
- Other family members who are at least 16 years old, who participate in the farming activities.
Voluntary insurance
- Persons who were previously insured can request to continue insurance on a voluntary basis, request must be filed within 6 months after termination of mandatory insurance.
Financing
General finances
- Mainly PAYG-financed from insurance contributions.
Contribution rates
- Share of monthly personal income, with contribution assessment ceiling (= ‘social security ceiling’).
- Contributions comprise two elements: for the ‘lump-sum old age pension benefit’ (assurance vieillesse individuelle), the rate is 3.32%.; for the ‘old age pension benefit’ based on acquired points (assurance vieillesse agricole), the rate is 11.55%.
- The minimal contribution assessment basis per year is equal to 800 times the hourly minimum wage.
Taxation of contribution payments
- Tax exemptions for insurance contributions.
Administration
- The central institution is the Central Office of the Agricultural Social Mutual Assistance Association (Caisse centrale de mutualité sociale agricole).
- The administration is largely decentralised and offices are found at the departmental level.
- The functioning of these offices is supervised by the state.
Qualifying Conditions
Qualifying conditions
- Statutory (minimum) retirement age increases to 62 for insured persons born after 1955.
- Full-rate old age pension: the insured person must either be at least 62 years old (if born after 1955) and have a minimum contribution record of 172 quarters (= 43 years; if born after 1972) or must have reached the age of 67 (if born after 1955).
Early retirement
- Benefits can only be claimed before reaching the statutory (minimum) retirement age by persons (born after 1955) with a long working career (age: 60), persons with disabilities (55), and persons working in arduous jobs (age 60); available without permanent negative adjustments to pension benefits.
Deferred retirement
- Retirement can be deferred; with positive (permanent) adjustments (surcote) to pension benefits (at least 1.25% every three months), if qualifying conditions for full-rate old age pension are met.
Combining employment & retirement
- In general, the payment of pension benefits must be preceded by the termination of the agricultural activity.
- Under certain conditions the entrepreneur is allowed to continue to be active (e.g. with another type of activity, or with administrative permission in certain cases).
Benefits
Pension benefits
- The benefits are divided into two parts: a lump-sum payment (assurance vieillesse individuelle) and a benefit calculated via points (assurance vieillesse agricole).
- Maximum amount: the total sum of the benefits shall not exceed 50% of the ‘social security ceiling’ which is determined yearly by the legislator.
- Minimum amount: the benefit should not be less than 75% of the minimum wage, if qualifying conditions for full-rate old age pension are met.
Benefit calculation
- The lump sum payment is calculated at a basis of EUR 3,400 per year (in 2019) and an additional rate determined by the ratio of the valid pensionable period and the required duration to receive the full pension (gradually towards 172 quarters). The level of this benefit is comparable to the solidarity allowance in old age (ASPA).
- The benefits calculated by points are based on the contributions paid during the career. The points acquired during the career shall not be less than 15.
- Adjustments: yearly adjustments of benefits, indexed to prices.
Taxation and social security contributions
- Pension benefits are subject to income tax.
- Pension benefits are not subject to social contributions, except the CSG, CRDS and CASA (contribution additionnelle de solidarité pour l'autonomie).
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Mandatory insurance
- Entrepreneurs working in the agricultural sector determined by Article L722-1 seq. of the Rural Code, who have exceeded a minimum size of cultivated area or a minimum time of working or who have reached a certain amount of income.1
- Other family members who are at least 16 years old, who participate in the farming activities.
Voluntary insurance
- Persons who were previously insured can request to continue insurance on a voluntary basis, request must be filed within 6 months after termination of mandatory insurance.
General finances
- Mainly PAYG-financed from insurance contributions.
Contribution rates
- Share of monthly personal income, with contribution assessment ceiling (= ‘social security ceiling’).
- Contributions comprise two elements: for the ‘lump-sum old age pension benefit’ (assurance vieillesse individuelle), the rate is 3.32%.; for the ‘old age pension benefit’ based on acquired points (assurance vieillesse agricole), the rate is 11.55%.
- The minimal contribution assessment basis per year is equal to 800 times the hourly minimum wage.
Taxation of contribution payments
- Tax exemptions for insurance contributions.
- The central institution is the Central Office of the Agricultural Social Mutual Assistance Association (Caisse centrale de mutualité sociale agricole).
- The administration is largely decentralised and offices are found at the departmental level.
- The functioning of these offices is supervised by the state.
Qualifying conditions
- Statutory (minimum) retirement age increases to 62 for insured persons born after 1955.
- Full-rate old age pension: the insured person must either be at least 62 years old (if born after 1955) and have a minimum contribution record of 172 quarters (= 43 years; if born after 1972) or must have reached the age of 67 (if born after 1955).
Early retirement
- Benefits can only be claimed before reaching the statutory (minimum) retirement age by persons (born after 1955) with a long working career (age: 60), persons with disabilities (55), and persons working in arduous jobs (age 60); available without permanent negative adjustments to pension benefits.
Deferred retirement
- Retirement can be deferred; with positive (permanent) adjustments (surcote) to pension benefits (at least 1.25% every three months), if qualifying conditions for full-rate old age pension are met.
Combining employment & retirement
- In general, the payment of pension benefits must be preceded by the termination of the agricultural activity.
- Under certain conditions the entrepreneur is allowed to continue to be active (e.g. with another type of activity, or with administrative permission in certain cases).
Pension benefits
- The benefits are divided into two parts: a lump-sum payment (assurance vieillesse individuelle) and a benefit calculated via points (assurance vieillesse agricole).
- Maximum amount: the total sum of the benefits shall not exceed 50% of the ‘social security ceiling’ which is determined yearly by the legislator.
- Minimum amount: the benefit should not be less than 75% of the minimum wage, if qualifying conditions for full-rate old age pension are met.
Benefit calculation
- The lump sum payment is calculated at a basis of EUR 3,400 per year (in 2019) and an additional rate determined by the ratio of the valid pensionable period and the required duration to receive the full pension (gradually towards 172 quarters). The level of this benefit is comparable to the solidarity allowance in old age (ASPA).
- The benefits calculated by points are based on the contributions paid during the career. The points acquired during the career shall not be less than 15.
- Adjustments: yearly adjustments of benefits, indexed to prices.
Taxation and social security contributions
- Pension benefits are subject to income tax.
- Pension benefits are not subject to social contributions, except the CSG, CRDS and CASA (contribution additionnelle de solidarité pour l'autonomie).
1 If the insured person exercises another non-agricultural activity, the relevant scheme shall be determined by referring to the working time spent in each of the activities. The activity with the longest working time will serve as the criteria for choosing the relevant scheme.
Legal Basis: Social Security Code – Book III (Code de la sécurité sociale, Livre III); Rural Code – Book III and Book VII (Code rural, Livre III et livre VII).