In France, retirement pensions are calculated in two primary ways depending on the affiliated scheme. Most basic schemes rely on the annuities system—also known as quarters—to determine payouts. Supplementary schemes like Agirc-Arrco, however, use a points-based system to calculate benefits for their members.
France's pension landscape comprises 42 schemes, unified by three core principles. First, it's compulsory: all workers contribute to their future pension, matched by employer contributions proportional to salary.
Second, it's pay-as-you-go: current workers' contributions fund current retirees' pensions.
Third, it's contributory: pension amounts reflect career earnings, retirement age, and years contributed.
Pension calculations either track validated quarters (annuities) or accumulate points from lifelong contributions, which determine rights and payout at retirement.
Unlike quarters-based systems, points-based pensions accumulate points throughout your career from contributions.
Annual employee and employer contributions are converted into points, added to your running total. Importantly, non-working periods like unemployment, maternity, or illness also earn points.
At retirement, total points multiply by the annual point value to yield your gross pension.
Agirc-Arrco, the mandatory supplementary scheme for private-sector employees atop basic pensions, exemplifies this model.
Contributions on gross pay—7.87% up to €41,136 annually, 21.59% from €41,136 to €329,088—plus employer shares, generate points for pension calculation.
Points formula: (Remuneration × points acquisition rate) / retirement point value.
Agirc-Arrco sets rates at 6.20% below €41,136 and 17% above; 2021 point value was €17.3982 (reference salary).
Example: €40,000 gross salary yields (40,000 × 6.20%) / 17.3982 = 142.54 points. Multiply total points by point value for your pension.
Track points via your personal Agirc-Arrco retirement account online.
Note: Ongoing pension reform favors universal points-based system over quarters, aiming for equity across all workers.
