Under certain conditions, an employee may purchase up to twelve quarters of contribution for his retirement. There are two options for the redemption of quarters to increase the rate of liquidation of the pension and a reduction in the apportionment. Who can benefit ? At what point in time ? The answers to your questions.
to be able to retire as soon as the legal age or shortly after and not be penalized because it does not have a duration sufficient insurance, it is possible to redeem quarters of contributions. This operation, also known as payments for retirement, is subject to numerous conditions, which are variable according to the professional status.
The parameters to take into account
Determine the age of departure. apply For a retirement pension in most schemes of basic and supplementary (private employees, the agricultural sector, civil servants of category sedentary, independent…), it must have reached a certain age, more known under the appellation of legal age of departure. This age is based on year of birth : 61 years and 7 months for individuals born in 1954 (which is a possible start as early as August 1, 2015) and 62 years for all persons born from 1955, except in special circumstances (career, disability…), allowing an early departure.
to Assess the period of insurance. For that retirement is optimal, that is to say, calculated at the full rate of 50 % (50 % of your average salary calculated over the twenty-five best years for private employees), it is necessary to have attained the legal age for a certain period of insurance. The latter is expressed in number of quarters in the main basic retirement schemes : Cnav for the employees of the private, RSI for the selfemployed, the MSA for workers and farmers… It is a function of the birth year : 165 quarters are needed to reach the full rate if one is born in 1953 or 1954, 166 if one is born in 1955, 1956 or 1957, and so on up to 172 quarters for those born from 1973.
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Check the age of the full rate. When one is entered later on the labour market or when one has voluntarily suspends his career for a few years, it is common, to the legal age, do not reach the minimum insurance period applicable to his generation and, therefore, not be able to benefit from the basic pension at the full rate. In this case, for an employee, three options are possible : continue working until the age at which he will arrive at the full rate (currently between 62 and 67 years old), do all of the same rights to the pension that will be reduced by the game of the discount rate and the apportionment of the period of insurance or, last option, redeem of quarters missing to enjoy as soon as of legal age or soon after retirement computed at the full rate.
The possibilities of redemption
Justify years or incomplete studies. To an employee of the private or independent, the redemption of quarters may relate to years incomplete, for which less than four quarters have been validated. It can also bring on years of studies in a higher education institution, public or private, provided that they have obtained the degree, or years of preparatory class. The studies should have been carried out in France or in a member State of the european economic area. For the officials, only the years of graduate study are taken into account. In any case, this redemption focuses on a limited number : a quarter, at a minimum, and twelve quarters to the maximum.
Choose a redemption option. With option 1, under “rates only”, the least expensive, the quarters redeemed are integrated to calculate the rate of your pension. They are not held to account for your term insurance in the general regime. This option is used to mitigate the effects of the discount, or even delete it and get a pension at the full rate if you redeem all the quarters missing to reach the minimum insurance period required. An employee born in 1954 totalling 160 quarters, instead of the 165 required, and consequently 61 years old and 7 months (legal age applicable to his generation), there will be a discount on the basic pension of 1.25% per quarter of missing, equivalent to 1.25 % x 5 = 6,25 %. The rate of liquidation will be of 46,87 % (50 % – 6,25 % x 50 %) instead of 50 % for the full rate. With the redemption, the liquidation rates would be 50 %, but its duration of insurance is pro-rata (160/165 quarters). It will collect only 97 % of his pension.
With option 2, under “rate and term”, the quarters of the redeemed is used to calculate both the rate and the duration of insurance under the general scheme. In addition to the discount, it decreases or cancels any pro-rated basis. Thus, with the previous example, the employee totals 165 quarters for the rates and duration, and will receive 100 % of his retirement. Officials have three options of redemption : reduce the discount, increase the duration of service, or combine the two.
to Verify the impact on the additional. Until December 31, 2018, the redemption of quarters in the basic scheme allows the employees of the private sector, or agricultural not to liquidate their supplementary pension schemes Arrco and Agirc with an abatement. Under certain conditions, redemption of points, for the yeares of graduate studies only, are possible in most of the supplementary schemes. The professionals must be current on their dues.
practical arrangements
to Assess the cost of the buyback. the cost of The operation is a function of the surrender option chosen, the age of the applicant and of the average income earned during the three years preceding the application. Simulators online allow you to have a clear understanding of : Lassuranceretraite.fr for employees ; for employees, Pensions.bercy.gouv.fr tab, Simulators, calculation, and Redemption of studies. Preferential rates are provided. Thus, an employee who acquires periods of study no later than the December 31 following the tenth year of the end of his studies now has the benefit of a tax deduction by a quarter of 670 euro (option 1) and 1 000 € (option 2). For a professional liberal, he is 400 euros and 590 euros, respectively. For a servant, it is 440 euros, 930 € or 1 € 380 depending on the option. In all cases, it is limited to four quarters.
Solicit its pension fund. The employees or the self-employed can make redemptions for their retirement at any time, if they were younger than 67 years and have not asserted their rights to retirement. This operation is not possible in the framework of an early retirement (career, disability…). For an employee, the upper age limit for redemption is 60 years of age. Depending on the case, the request for the assessment of redemption is to speak to his or her plan membership current or their first plan of affiliation (the Cnav, the more often). It can be performed on a piece of paper (for the territorial officials or hospital, for example) or by using a form downloadable (for private employees, for example).
Follow the terms of payment. Each application is the subject of a study : the Cnav has two months to respond (beyond this, the application is considered as rejected). The pension service of the State, for State officials, or the CNRACL for the territorial officials, have four months. If the application is accepted, the insured receives an evaluation, specifying, among other things, the number of quarters redeemable, the amount of payments and the terms of payment. A single quarter is paid out at once. Beyond that, a staggering one -, three -, or five years for an employee, or in three, five or seven years for a public servant (State or territorial) is provided, depending on the number of quarters.
An important tax deduction
Redeem quarters of pension allows you to benefit from a tax deduction very interesting. It applies three times, if necessary. The payments are first fully deductible wages to the year in which they are made (out of cap of tax loopholes). This operation takes place before the lump sum deduction or actual deduction for business expenses. If the amount of payments is higher than that of wages, the deficit created is then entirely attributable on the total income. Finally, if the total income cannot blot this deficit in its entirety, it can be carried over to the total income of the six following years.
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