Pension at 1200 euros: what you need to know about the guaranteed minimum pension

The government of Elisabeth Borne has mentioned a pension of 1,200 euros, as part of the new reform announced.

To rebalance the current pension system, the government raised the legal retirement age to 64 , compared to 62 today. The executive aims to achieve this goal by 2030 . To compensate for this effort, Elisabeth Borne announced that an increase in the minimum pension is necessary. From September 1, 2023, retirees who have completed the number of contribution quarters necessary will receive a pension of 1200 euros. But even if this measure is carried out within the framework of the pension reform, today's retirees can also benefit . It would just have to they meet the appropriate conditions to claim it . We take stock of the subject.

Who will be able to receive the pension at 1200 euros?

The pension at 1200 euros will be reserved for retirees “with income around the Smic” during their career. They must also fulfill a precise quota of quarters to qualify for a full rate. In other words, to qualify, the latter must have contributed 42 annuities , then gradually, 43 annuities.

This Wednesday, January 11, government spokesman Olivier Véran said that this corresponds to “200,000 new retirees each year” . To be eligible, the pensioner in question must also reach the legal retirement age. For now, he is 62 years old, but gradually, he will reach 64 years old. Obviously, some exceptions exist . If applicable, the retiree can wait until they are 67 to obtain a retirement pension without discount.

These measures will also be extended to current retirees who benefit from “a full career at minimum wage level”. In addition, Elisabeth Borne specified that 'the increase in the minimum pension will indeed concern the annual pension' . The measure will then be applied to “2.5 million French people who will see their pension increased this year”.

A measure to rebalance the pension system

This revaluation of the pension to 1200 euros for current and future retirees , will cost the state 2.5 billion euros . According to Olivier Véran, the budget intended to finance this measure is already ready.

'There's no blurring about it,' he said.

On France 2, Bruno Le Maire, passing through France 2, this Wednesday, January 11, supported:

'I'm opening up a possible option: the funds from the accident at work and occupational disease scheme, which has a surplus of three million euros. There may be other options, but I give the guarantee that the financial balance of pensions will be guaranteed in 2030”.

In a dossier dealing with the reform, the executive affirmed that this pension at 1200 euros “must be maintained over time”. This is necessary 'so that future retirees also have 85% of the net Smic of their year of retirement' .

When this reform is applied, the minimum retirement pension will be indexed to the SMIC . But 'out of fairness with other retirees', as soon as this minimum value pension has been approved, the pension will be indexed to inflation .

Who will not receive the pension at 1200 euros?

The pension of 1200 euros is only granted to retirees having completed all their contributions at the end of their career. That said, contributors who n have not completed the number of validated quarters required , will not perceive it.

The Parisian mentioned the ability to perform an automatic catch-up on the pro rata of the quarters contributed by these seniors. But this device has not yet received adequate clarification .

Olivier Véran has not yet provided the expected clarifications on the subject. He nevertheless mentioned other similar measures “like the minimum old age. These allow people such as the self-employed, those who have very choppy, incomplete careers, to leave with a level that the President of the Republic had already raised to 1,000 euros during the previous mandate ”.

Olivier Dussopt, Minister of Labour, has already revealed some interesting leads in this regard . This is in particular to establish “a sufficient gap between the minimum old age (953 euros for a single person today). This is not all since there is also the minimum pension, in order to make work worthwhile ».

Source : Tf1info