2016 ROLE AND KEY FIGURES RELEASE: JUNE 2017

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1 2016 ROLE AND KEY FIGURES RELEASE: JUNE 2017

2 FRANCE S LARGEST PENSION SCHEME FRANCE S PAY-AS-YOU-GO PENSION SYSTEM WAS FOUNDED IN 1945 AND OPERATES ON THE PRINCIPLE OF SOLIDARITY BETWEEN THE GENERATIONS. The pension contributions paid into the system by workers and employers finance the pensions paid out to retirees each month. Through their contributions, workers accrue pension rights, entitling them to claim a pension when they retire. Their pensions will be financed by the contributions paid in by a future generation of workers. The national pension office Caisse nationale d assurance vieillesse (CNAV) manages the retirement insurance section of the social security general scheme at national level. This is the base pension scheme for private-sector employees in the trading, manufacturing and service sectors, who also pay contributions into compulsory supplementary schemes managed by AGIRC, ARRCO and IRCANTEC. Agricultural employees and the self-employed (farmers, wholesale and retail traders, service providers, and professionals) pay into industry-specific pension schemes. There are also specific schemes for other categories of employees (chiefly public-sector employees and employees of large state-owned companies). Contributors to the main base pension schemes Breakdown of contributors to the main base pension schemes 68.4 % 1.8 % 1.9 % 2.7 % 7.7 % 8.6 % 8.8 % Other special schemes* Farmers Agricultural employees Public-sector employees and military personnel Self-employed traders, service providers and professionals Local government employees General scheme TOTAL CONTRIBUTORS (METROPOLITAN FRANCE): 26.1 million *Schemes contributing to special compensation only. Source: French Social Security Compensation Commission, 29 November 2016 (excluding the unemployed). Total pensions paid out by the main base pension schemes Total pensions paid out by all social security schemes (1) 55.1 % 4.3 % 4.7 % 6.0 % 9.4 % 10.2 % 10.3 % Other special schemes Local government employees Farmers Public-sector employees and military personnel Agricultural employees Self-employed traders, service providers and professionals General scheme* TOTAL PENSIONS PAID OUT (INDIVIDUAL AND SURVIVOR S PENSIONS, METROPOLITAN FRANCE): 24.7 million 1) A person may be entitled to pensions from more than one base scheme. * Including Crédit Foncier and Compagnie Générale des Eaux retirees; not including CAMR retirees. Source: Social Security Directorate for the French Social Security Compensation Commission, 29 November

3 LEGAL FRAMEWORK Parliament and Government The French parliament sets general guidelines for the social security system and votes the annual social security budget. The government introduces the necessary regulations to reach the targets set by the parliament. In particular, the government sets the annual percentage increase in pensions and the caps on pension contributions. The ministries in charge of social affairs and the budget have oversight over the social security schemes. They sign agreements on targets and management with the national social security offices. Agreements on targets and management CNAV signs multi-year agreements on targets and management with the state. Implementation of the agreements is governed by multi-year contracts between CNAV and the regional pension offices. These agreements set forth targets, operating resources and actions to be undertaken by each of the parties. CNAV director The government appoints the director of CNAV at a cabinet meeting, after consulting the chair of the board of directors. The director is tasked with the day-to-day operation of CNAV. He therefore has overall and exclusive responsibility for staffing. He organizes work, drafts budgets and authorizes expenditure. He ensures that the national office carries out its coordination and supervisory roles in relation to the regional offices, principally through the multi-year management contracts. CNAV Board of Directors The board of directors of CNAV elects a chair and a vice-chair for five-year terms. The board consists of: 30 members with voting rights > 13 > 13 > 4 4 representatives of social security insurees representatives of employers people qualified in CNAV s areas of expertise appointed by the state consultative members > 1 > 3 representative of Unaf representatives of employees The board approves CNAV s financial statements and budget; outlines social action policies for general-scheme retirees; and issues opinions on draft laws and decrees that could affect pensions. The board can also propose any measure it considers appropriate. 3

L ASSURANCE RETRAITE / MISSIONS ROLE AND ET KEY CHIFFRES FIGURES CLÉS 2016 2016 OUR ROLE Keeping records of employees employment histories As soon as someone starts working in France, an individual

The details of salaries and contributions are added to the account every year based on the information contained in the social security declarations filed by employers.

Providing assistance to employers Through its network of regional offices, CNAV is expanding the services it provides to employers.

workers, and advises them on social security declarations. 4 Helping insurees prepare for retirement Employees can view their employment history records free of charge at any time on www.

4 L ASSURANCE RETRAITE / MISSIONS ROLE AND ET KEY CHIFFRES FIGURES CLÉS OUR ROLE Keeping records of employees employment histories As soon as someone starts working in France, an individual retirement insurance account is opened in his/her name. The details of salaries and contributions are added to the account every year based on the information contained in the social security declarations filed by employers. The retirement insurance section of the general scheme managed 76.6 million employment history records in Providing assistance to employers Through its network of regional offices, CNAV is expanding the services it provides to employers. Through direct contacts and information meetings, CNAV keeps employers informed of developments that affect their employees, supports them in implementing measures to facilitate employment of senior workers, and advises them on social security declarations. 4 Helping insurees prepare for retirement Employees can view their employment history records free of charge at any time on The employment history record is an itemized account of all of the employee s salaries on which contributions were levied, and the number of quarters accrued towards a pension, as well as equivalent periods such as unemployment, disability or sick leave. The employment history record contains the information used to calculate the employee s pension when he/she retires. Employees can find answers to all their questions about their retirement pensions on As well as viewing their employment history records, they can:! view an estimate of their future pension (employees aged 54 and over),! find out the mandatory retirement age that applies to them,! apply for a pension online,! find answers to their questions via the extensive FAQ. To help insurees prepare for retirement, CNAV and the regional offices offer guidance ahead of time through face-to-face appointments at their 237 reception centres. The regional offices encourage future retirees to be ready for retirement by sending in their applications for a pension four to six months before their planned retirement date.

5 Ensuring timely payment Through diligent management of employees files, the retirement insurance section of the general scheme ensures a smooth transition to retirement for insurees. The average timeframe for processing an application for a pension is currently 15 days. Pensions are paid out on a monthly basis. A file is kept on every insuree throughout their retirement, so that any changes in status or new rights can be taken into account. Retirees can access a range of services on the website, including payment receipts, tax statements, and viewing payments. Fostering ageing well The retirement insurance section of the general scheme also has a diversified social action policy for insurees of all pension schemes to help elderly people cope with the impact of ageing and reduced autonomy. The social action policy is aimed at enabling elderly people to continue living in their own homes through individual assistance (individual assessment and action plans, carers, housing grants, assistance with returning home after a stay in hospital). In 2016, 322,330 retirees benefited from individual assistance to enable them to continue living at home. It also produces guides and has a dedicated website, The retirement insurance section also funds the construction, refurbishment and fitting out of elder-care facilities, as well as modifications to individual homes to enable people to remain living in their own homes. Recognised statistical and legal expertise CNAV is actively involved in technical and financial evaluations of the French pension system in the short, medium and long term. As the operator of the largest base pension scheme, CNAV plays a major role in designing tools and techniques for simulation and forecasting. CNAV staff work closely with French government departments to draft the annual social security budget, as well as legislation and regulations relating to pensions. They also contribute to forecasts by France s Pensions Advisory Council. To publicise its work, CNAV posts a quarterly electronic newsletter called and has a website dedicated to studies, research and statistics. CNAV also publishes studies and analyses by pension experts, researchers and academics in its journal Retraite et société, which addresses economic, demographic, sociological, statistical, legal and other aspects of retirement and pensions. International relations To assist other countries with their need for expertise in social security, and particularly pensions, CNAV has a pool of experts for consultation. CNAV also has partnerships with its counterpart organisations in other countries to facilitate the formalities for French retirees who live abroad (for example, certificates of existence). CNAV also has opportunities to share experiences and promote the French model of social security when it hosts foreign delegations in France. 5

6 KEY FIGURES (at 31 December 2016) 322, 330personalised action plans 12,944 beneficiaries of individual assistance to continue living at home, including 212,260 beneficiaries of staff working to serve pensions billion paid out in retirement pensions in more than 150 countries million surplus 3.6 million views of employment history records on million retirees million contributors % million employment history records managed of new retirees satisfied with the services provided Financial results The retirement insurance section of the general scheme received more than 125 billion in revenue, 62.1% of which came from pension contributions paid in by insurees and employers. Expenditure totalled almost billion, almost 91.3% of which consisted of benefits paid out (retirement and survivor s pensions and social action). Retirement insurance revenue in % 1 % 9.1 % 12.1 % 14.8 % Other revenue Transfers Allocated taxes Contribution from the old-age solidarity fund Social security contributions 125 billion in revenue Retirement insurance expenditure in % 1 % 1.1 % 6.6 % Other expenditure Overheads Transfers (to other schemes) Pensions (retirement, survivor s, social action) billion in expenditure 6

7 OUR NETWORK Pensions are managed by regional Retirement Insurance and Occupational Health Offices () in metropolitan France, General Social Security Offices (CGSS) in the overseas départements, and the Social Security Office (CSS) in Mayotte. In addition to its national coordination role, CNAV directly manages pensions in Île-de-France. Together, these organisations make up the retirement insurance section of France s social security general scheme. The retirement insurance section of the general scheme has assigned trained staff to the regional offices to facilitate relations with pension organisations in other countries that have a social security agreement with France or that come under EU regulations. Each regional office is thus equipped to process the files of insurees who live or have lived in France and in one or more of these other countries. Bretagne 14 branches 17 reception centres Normandie 14 branches 6 reception centres Pays de la Loire 11 branches 36 reception centres Nord-Picardie 23 branches 49 reception centres CNAV Île-de-France 30 branches 22 reception centres Nord-Est 13 branches 1 reception centre Centre - Val de Loire 11 branches 38 reception centres Bourgogne & Franche-Comté 13 branches Alsace-Moselle 9 branches 28 reception centres Branches in metropolitan France: 225 Reception centres in metropolitan France: 388 Branches in CGSS/CSS: 12 Reception centres in CGSS: 22 Centre-Ouest 10 branches 15 reception centres Auvergne 7 branches 19 reception centres Aquitaine 13 branches 42 reception centres Rhône-Alpes 14 branches 52 reception centres Midi-Pyrénées 12 branches 29 reception centres Languedoc-Roussillon 11 branches 24 reception centres Sud-Est 20 branches 10 reception centres CGSS 1 Guadeloupe 4 branches 8 reception centres CGSS 1 Guyane 1 branch 2 reception centres CGSS 1 Martinique 1 branch 6 reception centres CGSS 1 Réunion 5 branches 6 reception centres CSS 2 Mayotte 1 branch 1 General Social Security Office 2 Social Security Office 7

2016 RAPPORT NATIONAL D ACTIVITÉ ÉDITION JUIN 2017 Release:

ÎLE-DE-FRANCE ÉDITION SEPTEMBRE 2017 Release: July 2017

nationale d assurance vieillesse 110 avenue de Flandre 75951

10002 06/2017 - Supervision and coordination: CNAV,

8 2016 RAPPORT NATIONAL D ACTIVITÉ ÉDITION JUIN 2017 Release: June 2017 Every year, CNAV publishes a national report, as well as three thematic reports RAPPORT ACTION SOCIALE ÉDITION JUILLET RAPPORT ÎLE-DE-FRANCE ÉDITION SEPTEMBRE 2017 Release: July 2017 Release: second-half 2017 Release: second-half 2017 Caisse nationale d assurance vieillesse 110 avenue de Flandre Paris Cedex 19 - France Find us on: Facebook and Twitter RAPPORT RESPONSABILITÉ SOCIÉTALE ÉDITION OCTOBRE 2017 Réf / Supervision and coordination: CNAV, Communications Directorate Design and layout: PCA/PARIMAGE Photo credits: Patrick Sagnes Cover image: Olivier Bausset, Infrastructure Department Printed by: Cnav -

2017 ROLE AND KEY FIGURES

2017 ROLE AND KEY FIGURES RELEASE: JUNE 2018 FRANCE S LARGEST PENSION SCHEME FRANCE S PAY-AS-YOU-GO PENSION SYSTEM WAS FOUNDED IN 1945 AND OPERATES ON THE PRINCIPLE OF SOLIDARITY BETWEEN THE GENERATIONS.