2018

Release: June 2019

ROLE AND KEY FIGURES 2018

The pension contributions paid into the system by workers and employers finance the pensions paid out to retirees each month. Through their contributions, workers accrue pension rights, entitling them to claim a pension when they retire. Their pensions will be financed by the contributions paid in by a future generation of workers.

The national pension office – Caisse nationale d’assurance vieillesse (CNAV) – manages the retirement insurance section of the social security general scheme at national level. This, initially, was the base pension scheme for

private-sector employees in the trading, manufacturing and service sectors, who also pay contributions into compulsory supplementary schemes managed by AGIRC, ARRCO and IRCANTEC. Since 1 January 2018, it has also covered the self-employed.

Agricultural employees and farmers pay into a specific scheme. There are also specific schemes for other categories of employees (chiefly public-sector employees and employees of large state-owned companies).

L’ASSURANCE RETRAITE / ROLE AND KEY FIGURES 2018

FRANCE’S LARGEST PENSION SCHEME

2

TOTAL PENSIONS PAID OUT BY THE MAIN BASE PENSION SCHEMES

Total pensions paid out(1) (individual and survivor’s pensions, metropolitan France): nearly 25 million

Pensions paid out by all the social security schemes(1) at 1 July 2017

(1) A person may be entitled to pensions from more than one base scheme. Headcount: all direct and derived rights.* Including Crédit Foncier and Compagnie Générale des Eaux retirees; not including CAMR (Caisse autonome mutuelle de retraite) light railway worker retirees.Source: Social Security Directorate for the French Social Security Compensation Commission, December 2018.

Salaried

Non-salaried

84.1%

15.9%

10.1%

5.6%

10.3%

9.4%

5%4.2% Other special schemes*

Local government

Public-sector employees and military personnel

Self-employed traders, service providers and professionals

Farmers

Agricultural employees

55.4% General scheme

*Schemes contributing to special compensation only.Source: French Social Security Compensation Commission, 29 November 2016 (excluding the unemployed).

Salaried

Non-salaried

1.6% Other special schemes*

8.3% Local government employees

7.2%Public-sector employees and military personnel

9.9%

Self-employed traders, service providers and professionals

1.7% Farmers

2.5% Agricultural employees

68.8% General scheme

88.4%

11.6%

CONTRIBUTORS TO THE MAIN BASE PENSION SCHEMESTotal contributors (metropolitan France): 27.2 million

Breakdown of contributors to the main base pension schemes at 1 July 2017

FRANCE’S PAY-AS-YOU-GO PENSION SYSTEM WAS FOUNDED IN 1945 AND OPERATES ON THE PRINCIPLE OF SOLIDARITY BETWEEN THE GENERATIONS.

PARLIAMENT AND GOVERNMENTThe French parliament sets general guidelines for the social security system and votes the annual social security budget.

The government introduces the necessary regulations to reach the targets set by the parliament. In particular, the government sets the annual percentage increase in pensions and the caps on pension contributions. The ministries in charge of social affairs and the budget have oversight over the social security schemes. They sign agreements on targets and management with the national social security offices.

AGREEMENTS ON TARGETS AND MANAGEMENTCNAV signs multi-year agreements on targets and management with the state. Implementation of the agreements is governed by multi-year contracts between CNAV and the regional pension offices. These agreements set forth targets, operating resources and actions to be undertaken by each of the parties.

CNAV DIRECTORThe government appoints the director of CNAV at a cabinet meeting, after consulting the chair of the board of directors.

The director is tasked with the day-to-day operation of CNAV. He therefore has overall and exclusive responsibility for staffing. He organizes work, drafts budgets and authorizes expenditure. He ensures that the national office carries out its coordination and supervisory roles in relation to the regional offices, principally through the multi-year management contracts.

LEGAL FRAMEWORK

3

Gérard Rivière, Chairman of the board of directors of CNAV

Renaud Villard, Director

CNAV BOARD OF DIRECTORSThe board of directors of CNAV elects a chair and a vice-chair for five-year terms. The board consists of:

The board approves CNAV’s financial statements and budget; outlines social action policies for gene-ral-scheme retirees; and issues opinions on draft laws and decrees that could affect pensions. The board can also propose any measure it considers appropriate.

134

1 3

13

MEMBERS WITH VOTING RIGHTS

CONSULTATIVE MEMBERS

30

4

representatives of social security insurees

people qualified in CNAV’s areas of expertise appointed by the state

Representative of Unaf

representatives of employees

representatives of employers

L’ASSURANCE RETRAITE / ROLE AND KEY FIGURES 2018

KEEPING RECORDS OF EMPLOYEES’ EMPLOYMENT HISTORIESAs soon as someone starts working in France, an individual retirement insurance account is opened in his/her name. The details of salaries and contributions are added to the account every year based on the information contained in the social security declarations filed by employers, and henceforth by the nominative social declaration (DSN).

The retirement insurance section of the general scheme managed 78.82 million employment history records in 2018.

PROVIDING ASSISTANCE TO EMPLOYERSThrough its network of regional offices, CNAV is expanding

the services it provides to employers. It also provides a range of information in the special space for companies on www.lassuranceretraite.fr , where these last can also download documents to help their employees prepare for their retirement.

HELPING INSUREES PREPARE FOR RETIREMENTInsurees can view their employment history records free of charge at any time on www.lassuranceretraite.fr . The employment history record is an itemized account of all of the employee’s salaries and income on which contributions were levied, and the number of quarters accrued towards a pension, as well as equivalent periods such as unemployment, disability or sick leave. The employment history record contains the information used to calculate the employee’s pension when he/she retires.

OUR ROLE

4

L’ASSURANCE RETRAITE / ROLE AND KEY FIGURES 2018

Employees can find answers to all their questions about their retirement pensions on www.lassuranceretraite.fr . As well as viewing their employment history records, they can:

view an estimate of their future pension (employees aged 54 and over),

find out the mandatory retirement age that applies to them,

apply for a pension online,

find answers to their questions via the extensive FAQ.

To help insurees prepare for retirement, CNAV and the regional offices offer guidance ahead of time through face-to-face appointments at their 222 reception centres. The regional offices encourage future retirees to be ready for retirement by sending in their applications for a pension four to six months before their planned retirement date.

ENSURING TIMELY PAYMENTThrough diligent management of employees’ files, the retirement insurance section of the general scheme ensures a smooth transition to retirement for insurees. Since 2016, the guarantee of payment enables each individual having filed their completed file four months ahead of the chosen departure date to receive the initial payment of their pension on the specified date. Pensions are then paid out on a monthly basis.

A file is kept on every insuree throughout their retirement, so that any changes in status or new rights can be taken into account. Retirees can access a range of services on the www.lassuranceretraite.fr website, including payment receipts, tax statements, and viewing payments.

FOSTERING AGEING WELLThe retirement insurance section of the general scheme also has a diversified social action policy for insurees of all pension schemes to help elderly people cope with the impact of ageing and reduced autonomy.

The social action policy is aimed at enabling elderly people to continue living in their own homes through individual assistance (individual assessment and action plans, carers, housing grants, assistance with returning home after a stay in hospital). In 2018, 332,400 retirees benefited from individual assistance to enable them to continue living at home. It also produces guides and has a dedicated website, www.pourbienvieillir.fr .

The retirement insurance section funds modifications to individual homes to enable people to remain living in their own homes. It also subsidises autonomous residences, which have replaced sheltered housing.

RECOGNISED STATISTICAL AND LEGAL EXPERTISECNAV is actively involved in technical and financial evaluations of the French pension system in the short, medium and long term. As the operator of the largest base pension scheme, CNAV plays a major role in designing tools and techniques for simulation and forecasting.

CNAV staff work closely with French government departments to draft the annual social security budget, as well as legislation and regulations relating to pensions. They also contribute to forecasts by France’s Pensions Advisory Council.

To publicise its work, CNAV posts a quarterly electronic newsletter called Cadr’@ge, and has a website dedicated to studies, research and statistics. Through its https://data.cnav.fr site, it is implementing an open data policy as well as a data visualisation policy, accessible to all. CNAV also publishes studies and analyses by pension experts, researchers and academics in its journal Retraite et société, which addresses economic, demographic, sociological, statistical, legal and other aspects of retirement and pensions.

INTERNATIONAL RELATIONSTo assist other countries with their need for expertise in social security, and particularly pensions, CNAV has a pool of experts for consultation. CNAV also has partnerships with its counterpart organisations in other countries to facilitate the formalities for French retirees who live abroad (for example, certificates of existence).

CNAV also has opportunities to share experiences and promote the French model of social security when it hosts foreign delegations in France.

L’ASSURANCE RETRAITE / ROLE AND KEY FIGURES 2018

5

L’ASSURANCE RETRAITE / ROLE AND KEY FIGURES 2018

KEY FIGURES

6

KEY FIGURES 2018

4.7 million views of employment history records on www.lassuranceretraite.fr

90% of new retirees satisfied with the services provided

14.4million retirees

18.7million contributors

12,558 staff working to serve pensions

€122.8 billion paid out in retirement pensions in 162 countries

8.5%

3.3%

RETIREMENT INSURANCE REVENUE IN 2018Over €136 billion in revenue

FINANCIAL RESULTSThe retirement insurance section of the general scheme received over €136 billion in revenue, over 64.5% of which came from contributions paid in by insurees and em-ployers. Expenditure totalled €136 billion, 93% of which consisted of benefits paid out (retirement and survivor’s pensions and social action).

93%

4.2%

1%

1.8%

RETIREMENT INSURANCE EXPENDITURE IN 2018€136 billion in expenditure

78.8 million employment history records managed

€160.9 million surplus

332,400beneficiaries of individual assistance to continue living at home, including 215,890 beneficiaries of personalised action plans

64.5% Social security contributions

12.7%Contribution from the old-age solidarity fund

11% Allocated taxes

Transfers

Pensions (retirement, survivor’s, social action)

Transfers (to other schemes)

Overheads

Technical expenditure and provisions

Other revenue

CARSATAlsace-Moselle7 branches29 reception centres

CARSATNord-Est13 branches1 reception centre

CARSATNord-Picardie25 branches29 reception centres

CARSATNormandie14 branches2 reception centres

CNAVÎle-de-France25 branches12 reception centres

CARSATCentre-Val de Loire

11 branches38 reception centres

CARSAT Bourgogne-France-Comté12 branches

CARSATPays de la Loire9 branches30 reception centres

CARSATBretagne13 branches17 reception centres

CARSATCentre-Ouest10 branches14 reception centres

CARSATAuvergne6 branches19 reception centres

CARSATRhône-Alpes14 branches27 reception centres

CARSATSud-Est18 branches 7 reception centres

CARSATLanguedoc-Roussillon11 branches 7 reception centres

CARSATMidi-Pyrénées11 branches29 reception centres

CARSATAquitaine12 branches41 reception centres

CGSS1

Guadeloupe3 branches

CGSS1

Guyane2 branches

CSS2

Mayotte1 branch

CGSS1

Martinique1 branch

CGSS1

Réunion4 branches

1. Caisse générale de sécurité sociale 2. Caisse de sécurité sociale

L’ASSURANCE RETRAITE / ROLE AND KEY FIGURES 2018

OUR NETWORK

7

Pensions are managed by regional Retirement Insurance and Occupational Health Offices (CARSAT) in metropolitan France, General Social Security Offices (CGSS) in the overseas départements, and the Social Security Office (CSS) in Mayotte. In addition to its national coordination role, CNAV directly manages pensions in Île-de-France.

Together, these organisations make up the retirement insurance section of France’s social security general scheme.

The retirement insurance section of the general scheme has assigned trained staff to the regional offices to facilitate relations with pension organisations in other countries that have a social security agreement with France or that come under EU regulations. Each regional office is thus equipped to process the files of insurees who live or have lived in France and in one or more of these other countries.

Branches in metropolitan France: 211Reception centres in metropolitan France: 302Branches in CGSS/CSS: 11

Find us on: www.lassuranceretraite.fr

and Twitter.

Every year, CNAV publishes a national report, as well as three thematic reports.

Release: June 2019 Release: second-half 2019 Release: second-half 2019

Release: June 2019

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