Page 29 - Monaco Economy 128

What’s Changed for Top-up Pensions

by Milena Radoman

With the launch of its own supplementary pension fund on 1 January 2024, Monaco will offer soon
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a 100% Monegasque pension system.

Supplementary pensions were first introduced Monaco, within the CMRC, has been preserved Employers and the Government. "This fund
in Monaco in the 1960s. At the time, employers in Monegasque social security law. As a will give more benefits to employees and cost
and trade unions agreed on the need "to top-up result, Monaco now has full control over the less to employers, with a higher rate of return
the basic pension scheme which, as in France, management of employees' supplementary than Agirc-Arrco (5.6%). It will start at between
did not in itself provide a good standard of pensions... 6.2% and 6.5%, rising to 7% if results are good.
living once retired", as explained to Monaco’s And to ensure that they are good, we need to
social security fund, Caisses Sociales. Since Tripartite management continue increasing the number of employees
1965, employees in the Principality have been Operational from January 1, 2024, CMRC, by 2% a year", point out Cédrick Lanari and
members of the French AGIRC - ARRCO top-up backed by Monaco’s social security fund, will Jean-Luc Cloupet of the F2SM, which will be
pension scheme, which supplements the basic manage the entire Monegasque supplementary on the supervisory committee. An actuary's
pension provided by the Caisse Autonome pension scheme from a technical point of study was commissioned in 2021 to specify
des Retraites (CAR) via the Association view (collection of contributions, liquidation the amount of rights that would remain payable
Monégasque de Retraite par Répartition and payment of pensions). It will set the plan by the French scheme, entailing payment of a
(AMRR). The scheme, steered by the historic parameters, validate the accounting data balance of over 2 billion euros by Monaco. "We
trade unions (Union des Syndicats de Monaco transmitted by the CAR, and manage the Social are currently being reviewed by the lawyers
and Fédération des Entreprises Monégasques), Fund and the Reserve Fund. Its management on both sides. We've been reassured that the
worked very well for decades. But "successive will be tripartite, with Boards of Directors fund will remain solid for the next 40 years,"
reforms in France led Monaco’s unions (FEDEM made up of representatives of Employees, says Minister Christophe Robino.
and USM) to call for the creation of a specifically
Monegasque supplementary pension scheme",
as laid out in the explanatory memorandum to
the law creating the Caisse Monégasque de
Retraite Complémentaire (CMRC), passed in
June 2023. Ten years after the trade unions
signed amendment no. 21 to the National
Employment Convention, the principle of
repatriating supplementary schemes to F2SM Jean-Luc Cloupet et Cédrick Lanari © F2SM

QUESTIONS YOU MAY HAVE ABOUT CMRC

1 - What is the operating principle of CMRC?
"Like the CAR, the CMRC is a points-based scheme. It is managed on a pay-as-you-go basis, which means that current contributions
finance current pensions. It is therefore based on intergenerational solidarity", the Caisses Sociales explains.

2 -How will the points be managed?
"In the same way as the pension points calculator was managed by Agirc-Arcco, a points account will be managed by CMRC. All points
will be transferred to CMRC on January 1 2024. The transfer of points is based on a simple rule: 1 Agirc-Arrco point = 1 CMRC point.
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3 - Who is affected?
For those who retire from Agirc-Arrco before January 1 2024, Agirc-Arrco will continue to pay their pensions unchanged.
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For those retiring after January 1 2024, the points awarded by Agirc-Arrco for a period of activity in Monaco will be transferred to CMRC,
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which will ensure payment of all rights acquired in the Principality. Agirc-Arrco will pay for periods of salaried employment in France.

4- Will the net salary change following the creation of the CMRC?
"There will be no reduction in net salary as a result of CMRC contributions.
Contribution rates for supplementary pensions will be similar when the new scheme comes into effect. However, the contribution
d'équilibre technique (CET) and the Apec contribution (for executives) will disappear.”

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