The Agirc-Arrco pension plan is in a complicated financial situation and is requesting an eight billion euro loan from the government.
To pay the pensions for June and July, Agirc-Arrco is requesting an advance from the government in the amount of eight billion euros, according to Le Monde. The supplementary pension plan for private sector employees sent a letter to this effect, Wednesday, May 6, to the Minister of Public Action and Accounts, Gérald Darmanin.
The Agirc-Arrco approach is justified by the impact of the measures taken by the government in the midst of the Covid-19 crisis. The postponement of social security contributions and the massive deployment of short-time working are among the measures taken to avoid the multiplication of business failures. Partial unemployment leads in particular to the exemption from deductions for pensions, which has led to a fall in the scheme’s revenues, the national daily explains.
Seven billion euros in supplementary pensions paid each month
After the payment of the sums due for May, the scheme will have mobilized almost all of its cash reserve “, Specify the signatories of the mail, Jean-Barboul, its president, and Didier Weckner, its vice-president. The fund pays out seven billion euros in pensions each month. ” The overall additional financing need is estimated at eight billion euros », They write.
Agirc-Arrco’s financial reserves stood at 65 billion euros in 2019, but for its leaders, it is not advisable to use them at this time. Indeed, this “mattress” is made up of bonds and stocks, and some of them have seen their value plummet in recent weeks, due to the Covid-19 epidemic. Putting reserves to work would mean ” sell off titles at low prices “According to Pierre Roger, of CFE-CGC.
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The other option is therefore to request a loan from the Central Agency for Social Security organizations (Acoss), up to eight billion euros, ” to finance the maturities of early June and early July ” This funding guarantee mechanism was put in place by one of the orders of March 25.