The more they work, the more their pensions will fall: the decrees on the new rules for multiple employment retirement which will come into force in 2027 have just been published

Restrictions on combining employment and retirement come into force: from January, new retirees under the age of 67 who return to work and receive more than 7,000 euros gross per year will see their pension reduced, confirm two decrees published this Tuesday, providing for exceptions. The reform, adopted last year, applies to all those who will receive their first retirement pension from January 1.

Any insured person who decides to leave before the legal age (64 years in the long term, 62 years and 9 months today, following the progressive application of the Borne reform) and who returns to work will see 100% of their income deducted from their pension. Let's take the example of an employee born in 1966. If he meets the conditions for a long career, he can retire at 60 years and 9 months, while the legal retirement age for his generation is theoretically set at 63 years and 3 months.

If he returns to work between his departure at 60 years and 9 months and his 63 years and 3 months, his pension will be reduced by the amount of his new professional income, from the first euro earned. These periods worked will not allow him to obtain a second pension. If he perceives for example 1.

500 euros pension per month and at the same time earns 800 euros per month while working, his pension may be reduced by 800 euros and fall to 700 euros. His total income will therefore remain at 1,500 euros, instead of increasing to 2.

300 euros. For their part, an insured party between the legal minimum age and the "cancellation of the reduction" age, set at 67 years, will be able to fully accumulate their pension and 7,000 euros of earned income, including daily sick leave allowances.

Beyond this threshold, 50% of additional earned income will be deducted from the pension. A retiree earning 12,000 euros in the year thanks to his activity would thus exceed the threshold of 5.

000 euros. His pension would then be reduced by 2,500 euros over the year if the threshold is 7.

000 euros is confirmed. This ceiling of 7,000 euros will change each year, following the evolution of the Social Security ceiling (which depends in particular on the increase in salaries), specifies the decree.

After age 67, however, full accumulation will be possible. Exemptions for certain professions The second decree lists various professions and activities which benefit from exemptions. Thus, several professionals will be able to fully combine pension and income, including maternal and family assistants, people assisting the elderly or disabled, caretakers of buildings housed by the employer, certain caregivers in areas identified as medical deserts, etc.

Other activities are not affected by pension capping, such as income from “accommodation in rural areas in heritage properties”, or “activities of an artistic, literary, scientific nature, carried out on an ancillary basis”. The combination of employment and retirement concerned, according to the Court of Auditors, around 710,000 people in 2020, who earned an average of 9.

Machine-translated from French