Old Age Pension Scheme for Local Civil Servants
Retraite des fonctionnaires territoriaux et hospitaliers
Coverage
Mandatory insurance
- Civil servants of local administrations (collectivités territoriales).
- Civil servants in hospital services.
Financing
General finances
- Mainly tax-financed out of the local public budget.
- Partly PAYG-financed from insurance contributions of the civil servants.
Contribution rates
- Fixed share of monthly gross earnings; without contribution assessment ceiling.
- Contributions are shared between civil servants (10.83%) and the employer (30.65%) (in 2019).
Taxation of contribution payments
- Tax exemptions for insurance contributions.
Administration
- The National Office for Agents of Local Administrations (Caisse nationale de retraite des agents des collectivités locales) is in charge of the administration of the scheme.
- This Office is integrated in the Deposit and Consignment Office (Caisse des dépôts et des consignations).
Qualifying Conditions
Qualifying conditions for public servants
- Conditions vary according to the category of the public servant: for ‘sedentary’ servants, the statutory (minimum) retirement age is normally 62, the minimum service period is 2 years; for ‘active servants’, the retirement age is 57, the minimum service period is 17 years.
- Full-rate pension: the insured person must either have a minimum contribution record of 172 quarters (for persons born after 1973) or must have reached the full-rate pension age of 67 (for the sedentary category) or 62 (for the active category).
Early retirement
- Available for persons who have had a long career (i.e. persons who started to work before the age of 20) 2 years before retirement age, without negative adjustments to pension benefits.
Deferred retirement
- In general, a person can be asked to retire when reaching a certain age (67 for persons born after 1955 in the ‘sedentary’ category; 62 for persons born after 1955 in the ‘active’ category).
- There are exceptions concerning the age limit, if the person has not yet reached the minimum service period.
Combining employment & retirement
- Under certain conditions, the person can combine a professional activity in the public or the private sector with the claiming of pension benefits.
Benefits
Pension benefits
- Primarily based on last earnings prior to retirement and years of service.
- Maximum amount: the full-rate pension is the maximum amount of the pension benefits, which is 75% of the last earnings of the public servant.
- Minimum amount: similar to the minimum wage, i.e. around EUR 1,200 per month (lower amounts are possible under certain particular conditions), if the pension benefit is below a minimum level and if qualifying conditions for full-rate old age pension are met.
Benefit calculation
- The level of income which the person receives for at least six months before retirement (traitement incidiaire).
- The ratio between the period of service and the required period for a full pension.
- 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.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
Mandatory insurance
- Civil servants of local administrations (collectivités territoriales).
- Civil servants in hospital services.
General finances
- Mainly tax-financed out of the local public budget.
- Partly PAYG-financed from insurance contributions of the civil servants.
Contribution rates
- Fixed share of monthly gross earnings; without contribution assessment ceiling.
- Contributions are shared between civil servants (10.83%) and the employer (30.65%) (in 2019).
Taxation of contribution payments
- Tax exemptions for insurance contributions.
- The National Office for Agents of Local Administrations (Caisse nationale de retraite des agents des collectivités locales) is in charge of the administration of the scheme.
- This Office is integrated in the Deposit and Consignment Office (Caisse des dépôts et des consignations).
Qualifying conditions for public servants
- Conditions vary according to the category of the public servant: for ‘sedentary’ servants, the statutory (minimum) retirement age is normally 62, the minimum service period is 2 years; for ‘active servants’, the retirement age is 57, the minimum service period is 17 years.
- Full-rate pension: the insured person must either have a minimum contribution record of 172 quarters (for persons born after 1973) or must have reached the full-rate pension age of 67 (for the sedentary category) or 62 (for the active category).
Early retirement
- Available for persons who have had a long career (i.e. persons who started to work before the age of 20) 2 years before retirement age, without negative adjustments to pension benefits.
Deferred retirement
- In general, a person can be asked to retire when reaching a certain age (67 for persons born after 1955 in the ‘sedentary’ category; 62 for persons born after 1955 in the ‘active’ category).
- There are exceptions concerning the age limit, if the person has not yet reached the minimum service period.
Combining employment & retirement
- Under certain conditions, the person can combine a professional activity in the public or the private sector with the claiming of pension benefits.
Pension benefits
- Primarily based on last earnings prior to retirement and years of service.
- Maximum amount: the full-rate pension is the maximum amount of the pension benefits, which is 75% of the last earnings of the public servant.
- Minimum amount: similar to the minimum wage, i.e. around EUR 1,200 per month (lower amounts are possible under certain particular conditions), if the pension benefit is below a minimum level and if qualifying conditions for full-rate old age pension are met.
Benefit calculation
- The level of income which the person receives for at least six months before retirement (traitement incidiaire).
- The ratio between the period of service and the required period for a full pension.
- 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.
Legal Basis: Law of 26 January 1984 on the territorial public function and Law of 9 January 1986 on the public function in hospitals (Loi n° 84-53 du 26 janvier 1984 portant dispositions statutaires relatives à la fonction publique territoriale et Loi n° 86-33 du 9 janvier 1986 portant dispositions statutaires relatives à la fonction publique hospitalière).