CSG: a gesture for the retired in the fall of

May 24, 2020

A small party of pensioners penalized by the increase of the CSG will receive a boost in the fall. And you ?

The rise of 1.7 percentage point of the CSG, which came into force on the 1st January, does not end a lot more to do cause… To appease the anger of the pensioners affected – those who pay the CSG at the full rate, that is to say, the least modest of them – the Prime minister Edouard Philippe had announced in march that the government would address part of the device. And that this action would occur within the framework of the budget laws for 2019, to be presented at the beginning of the fall and voted on before the end of the year.

For those “just above threshold”

The promise will it be held ? Last week, a report by mp REM Joël Giraud on the application of tax measures recorded in recent years has come to cast doubt. “No element of timing [not me] was passed”, written by the general rapporteur of the Finance committee of the Assembly, citing the “difficulties of a technical and methodological nature” to overcome for the implementation of this gesture.

Interviewed by The Express, the services of Bercy, however, proved reassuring : the corrigendum promised is currently the subject “of a work of refinement,” but “will be enrolled in the project of Finance law to 2019”, has assured on Tuesday the cabinet of minister of the Action and of the public accounts, Gérald Darmanin. Without providing any details on the form and the level of the gesture.

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who will it be ? In march, Edouard Philippe had referred to these French people who have suffered “an increase in their GSA, while the addition of the two pension levels just above the threshold”. This famous threshold, it is 14 375 € (1) income tax reference (RFR, to find it on your last tax notice) for a household with a single share of taxation (a single pensioner), and 22 051 € with two units (one pair). From this level of RFR, the pensioners pay the CSG on their pensions at the full rate – 8.3 percent since January 1, compared to 6.6% previously. Below this RFR, their pensions are exempt from CSG or benefit of the reduced rate of 3.8%, which has not increased.

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100 000 beneficiary households ?

According to Bercy, the measure would be more accurately restated as a couple both of whose members would be individually below the threshold of RFR “single”, but which, together, are above the threshold “a couple”. But it will have to wait a few weeks for more information.

How many people would benefit from the fix ? Edouard Philippe had mentioned in march, “100 000” in French ; the report Giraud speaks of 100 000 retired households (households with at least one pensioner). This second option seems more consistent, the determination of the rate of the CSG on pensions taking place at the level of the household and not the individual.

As the report points out, the increase in the full rate of the CSG on pensions, which has affected seven million households on January 1. With the key, a loss of net pension of € 50 per month. A portion of these seven million will see, however, this loss is compensated, totally or partially, by another measure : the gradual melting of the housing tax.

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or Retirees, households in which the RFR does not exceed a certain amount – 27 000 € for a single, 43 000 € for a couple – will be in the fall to apply on their property tax relief (a reduction of 30 per cent by 2018, 65% in 2019 and 100% by 2020.

3.2 million households losing

If you add up the effects, to the contrary of the increase of the CSG on pensions and the reduction of the housing tax, 6.4 million households of pensioners will be the final losers financially in 2018 (they will lose at least a euro of disposable income per month). It is those who pay the CSG at the full rate on their pensions and whose income is too high to enjoy the relief from the property tax. And those who will benefit, of course, the drawback of housing tax, but this does not cover the increase of the CSG. Average loss for households affected : 380 € on the year, according to figures quoted in the report, which had already been made public by the end of 2017.

In 2020, there would be 3.2 million households of pensioners losing out. With an average loss of 500 € per year and per household. However, if one takes into account/ accounts for the reduction in social contributions for January and October 2018, which also benefit households with one active and one retired, the number of losers in the end would be less.

report Giraud

Side of government, we prefer to speak of a “retired net contributors to national solidarity” rather than losers. “Remember that this can be used to finance increases in purchasing power of the assets [editor’s note : through the reductions of contributions], but also the increases in minimum social benefits such as minimum old-age pension and the allowance for adult with disabilities”, defended the firm Gérarld Darmanin, which stipulates that from 2021 all the households of the retired that had an increase of the CSG should see this offset, at least partially, by the deletion of all of the housing tax that has htee announced.

(1) According to the Finance Commission, a tax income of reference (RFR) “single” 14 375 € corresponds to a level of pension of 1 331 € per month for under 65 years of age and 1 439 € for over 65 years, provided they do not affect other income. The RFR “couple” of 22 051 € corresponds to 2 042 € pension for under 65 years of age, 2 200 € otherwise.

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