If you didn’t know, know that in France there is a device called progressive retirement. This is a device made for an insured person with the statutory retirement age (almost). This way you can receive a fraction of your retirement pension. Upon receiving it, the insured continues to carry out one or more part-time activities. Here’s what you need to know.
Conditions for obtaining gradual retirement
You should know this for request this device gradual retirement, you must be at least 60 years old. Furthermore, it is also necessary:
- Have 150 insurance quarters. That is housing with contributions, assimilated (military service, sickness, unemployment, etc.) and increases in housing such as for children.
- To work part-time. That is to say in 40 and 80% of the working time in his company. In a company that practices 35 hours per week, this equates to working hours of between 14 and 28 hours.
Note that this device can also be accessed accumulating part-time with different employers. Except the working hours must be between 40 and 80% full time.
Employees we don’t count for working time in hours will be able to access this device. In particular, executives on a daily subscription previously excluded from the system. This is the Decision n. 2020-885 QPC of the Constitutional Council of 26 February 2021.
It will take effect from January 1, 2022. Progressive retirement is also of concern artisans or merchants, operators and employees. This is not the case with civil servants and the liberal professions such as lawyers.
The method of calculating gradual retirement
The progressive old-age pension is calculated on the basis of part-time work. That said, if you work 25 hours a week, that’s equivalent to 71% part-time. This is 25/35 = 71,428 5%. This should be rounded to the nearest whole number.
We will then be entitled to 29% (100% – 71%) of your pensions. This percentage is applied to your basic pension, which is calculated as if you were retiring. And this, considering the number of quarters acquired at the time of transition to progressive retirement.
This being the case, having all his quarters, that is 167 or 168, the progressive retirement will be calculated at full rate. In case of lack of quarters it will suffer a reduction. This means that you recalculate your final retirement.
And this, by counting the quarters acquired in a period of progressive retirement once the activity has ceased. On the other hand, you can increase your pension with the premium if you continue your business over 62 years. And this, thanks to progressive retirement.
In this case, the basic pension will increase by 1.25% (5% for a full year). This with each quarter contributed in addition. However, gradual retirement is not recalculated based on the number of validated quarters. Not even based on the reward between entry into the device and exit.
The procedure to follow to obtain gradual retirement
Here is the procedure for apply for gradual retirement. First, you need to get permission from your employer to downsize your business if you don’t work part time. Note that the employer is not required to grant this permission.
It will also be necessary to negotiate to contribute like working full time. How come ? For more supplementary pension points. Then, you need to submit a progressive retirement application to your Carsat.
After obtaining the employer’s consent, of course; or if you are already part-time. And this, at least six months ago the desired date for obtaining of this retreat. To make the request it is necessary to use the Cerfa form 50298 * 07.
You will attach to this a certificate from your employer specifying the length of your part-time job. The Cerfa print is available for download on the AssuranceRetraite website. The Pension Fund and Occupational Sickness Insurance (Carsat) checks the duration of part-time work every 12 months.
For this, send a questionnaire. If the length of this period changes, you would recalculate your phased retirement. And this, even if it remains between 40 and 80% of full time. You lose the benefit of gradual retirement if you return to full time or lose your job. Additionally, you will need to refund any overpayments.