4 people qualified in Cnav s areas of expertise appointed by the state BREAKDOWN OF PENSIONS PAID OUT BY THE MAIN SCHEMES AT 31 DECEMBER 2013

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2 2 3 France s largest pension scheme Legal framework France s pay-as-you-go pension system was founded in 1945 and operates on the principle of the solidarity between the generations. Parliament and Government Parliament sets general guidelines for the social security system and votes the annual social security budget. 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. This is the base pension scheme for 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, tradespeople and professionals) pay into industry-specific supplementary schemes. In addition, there are special schemes for certain other categories of employees (chiefly public-sector employees and employees of large state-owned companies ). The government introduces the necessary regulations to reach the targets set by 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. 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 representatives of social security insurees 13 representatives of employers BREAKDOWN OF CONTRIBUTORS TO THE MAIN SCHEMES AT 31 DECEMBER 4 people qualified in Cnav s areas of expertise appointed by the state BREAKDOWN OF PENSIONS PAID OUT BY THE MAIN SCHEMES AT 31 DECEMBER 1.8% 4 consultative members 1 representative of the national union of family associations (UNAF) 3 Cnav employee representatives 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. 4.7% 4.4% 8.5% 9.4% 7.8% Agreements on targets and management 9.9% 8.6% 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 the targets, operating resources and respective roles of the parties. 2.0% 2.6% 6.8% 68.7% 10.5% Total contributors: 25.8 million Total pensions paid out: million General scheme General scheme Agricultural employees Agricultural employees Farmers Farmers Traders, tradespeople, professionals, clergy Traders, tradespeople, professionals, clergy Public-sector employees and military personnel Public-sector employees and military personnel Local government employees Local government employees Other special schemes Other special schemes 54.4% Cnav director The government appoints the director of Cnav at a cabinet meeting, taking into account the opinion of 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.

4 5 Our role Keeping records of employees work histories As soon as someone starts working in France, an individual retirement account is opened in their name.

The retirement insurance section of the general scheme managed 73.2 million careers in.

autonomy. In, 375,210 retirees benefited from assistance from retirement insurance.

assistance with returning home after a stay in hospital). The retirement insurance section also funds construction, upgrades and equipment for elder-care facilities.

Through direct contacts and information meetings, Cnav keeps employers informed of developments that affect their employees and assists them to implement measures to facilitate employment of senior

3 4 5 Our role Keeping records of employees work histories As soon as someone starts working in France, an individual retirement account is opened in their name. The details of salaries and contributions are added to the account every year on the basis of the social security declarations filed by employers. The retirement insurance section of the general scheme managed 73.2 million careers in. Assisting vulnerable retirees The retirement insurance section of the general scheme also has a diversified social action policy to help elderly people cope with the effects of ageing and reduced autonomy. In, 375,210 retirees benefited from assistance from retirement insurance. 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). The retirement insurance section also funds construction, upgrades and equipment for elder-care facilities. Supporting employers Through its network of regional offices, Cnav offers a range of services for employers. Through direct contacts and information meetings, Cnav keeps employers informed of developments that affect their employees and assists them to implement measures to facilitate employment of senior workers. Providing 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. Helping insurees prepare for retirement Cnav staff work closely with 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 (COR). Employees can view their career records free of charge at any time on or request a copy by mail. An accurate reflection of the employee s work history, the career record is an itemized account of all the 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 career record contains the information used to calculate the employee s pension when he/she retires. To publicise its work, Cnav posts a quarterly electronic newsletter called and in set up a dedicated website for 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, statistics, legal and other aspects of pension issues. mployees can find answers to all their questions about retirement on E As well as viewing their career 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, view their file or find answers to their questions via the extensive FAQ. To help insurees prepare properly for retirement, Cnav and the regional offices offer face-to-face appointments at their 279 reception centres. Ensuring regular payments Through careful preparation of employees files, the retirement insurance section of the general scheme guarantees insurees a smooth transition to retirement with no disruption in income. The average timeframe for processing an application for a pension is currently 18 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. International relations In response to demand from other countries in the field of social security, and particularly pensions, Cnav sends staff on assignment through tenders and calls for experts. To facilitate these exchanges, Cnav has created a pool of technical, generalist and manager profiles. Cnav also has opportunities to share experience and promote the French model of social security when it hosts foreign delegations.

4 6 7 (at 31 December ) million retirees million contributors Our network Pensions are managed by regional Retirement Insurance and Occupational Health Offices (Carsat), 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. RETIREMENT INSURANCE REVENUE IN Together, these organisations make up the retirement insurance section of France s social security general scheme. 0.3% 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 other countries. 0.5% 0.8% 4.9% billion paid out in retirement a n d s u r v i v o r s p e n s i o n s i n m o r e t h a n 15 0 c o u n t r i e s million work histories managed Branches in metropolitan France: 279 Reception centres in metropolitan France: 728 Branches in CGSS/CSS: 15 Reception centres in CGSS: % 19.2% 3.14 billion in deficit staff serving retirement of new retirees satisfied with the services provided 20 branches 18 reception centres Contributions paid by the state Write-backs from provisions Pays de la Loire beneficiaries of social action assistance, including beneficiaries of individual action plans 53 reception centres 17 branches 23 reception centres Centre-Ouest 0.6% 11 branches 13 reception centres 0.2% Auvergne 7 branches 35 reception centres 0.6% Rhône-Alpes 15 branches 112 reception centres 1.2% Aquitaine 1.4% 15 branches 58 reception centres 4.8% Midi-Pyrénées 91.2% The retirement insurance section of the general scheme received more than billion in revenue, almost 63.4% of which came from pension contributions paid in by insurees and employers. Expenditure totalled almost billion, almost 93% of which consisted of benefits paid out (retirement and survivor s pensions and social action). Bourgogne & Franche-Comté RETIREMENT INSURANCE EXPENDITURE IN 12 branches 37 reception centres Financial results 14 branches 13 reception centres Centre 44 reception centres Transfers 11 branches 27 reception centres Nord-Est 50 branches 50 reception centres 16 branches 18 reception centres Other revenue Alsace-Moselle CNAV Île-de-France Bretagne Allocated taxes million visitors to Social security contributions 25 branches 184 reception centres Normandie billion in revenue Contribution from the old-age solidarity fund 91% 3 Nord-Picardie 63.4% Sud-Est Languedoc-Roussillon 27 branches 20 reception centres 23 reception centres billion in expenditure Pensions (retirement and survivor s) Overheads Provisions Transfers (compensatory transfers, transfers to special schemes) Payments to electricity and gas utilities Social action Other expenditure Guadeloupe 3 branches 9 reception centres Guyane 1 branch 3 reception centres Martinique 4 branches 6 reception centres Réunion 5 branches 8 reception centres CSS2 Mayotte 2 satellites or reception centres 1. General Social Security Office 2. Social Security Office

5 110 avenue de Flandre Paris Cedex 19 Find us on: Facebook the Retraite Sécu mobile app, an Twitter. Ref /2014 Oversight and coordination: Cnav, Communications Division Design and layout: PCA/PARIMAGE Photos: Patrick Sagnes Cover photo: Christine Née, Île-de-France Retirement and Social Action Division Printed by: Cnav Les Allocations familiales L Assurance Maladie L Assurance Retraite Le Réseau des Urssaf

2016 ROLE AND KEY FIGURES RELEASE: JUNE 2017

2016 ROLE AND KEY FIGURES RELEASE: JUNE 2017 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.