Creation of a Monegasque Supplementary Retirement Pension Fund (CRMC) for private sector employees (Law No.1.544)

Law No. 1.544 of 20t April 2023 instituting a Monegasque Supplementary Pension Fund named "Caisse Monégasque de Retraite Complémentaire" (CRMC), published in the JDM n° 8640 of 28April 2023, is the result of Bill No. 1070 (2022-5, 24 October 2022) received by the Parliament (Conseil National) on 16 November 2022 and voted in Public Session on 13 April 2023.

The Law will be supplemented by a Sovereign Order setting out the conditions and procedures for its application.

Entry into force of the provisions of Law No. 1.544:

• Articles 1 to 6 of the Law (status, composition and management of the CMRC) come into force on 29 April 2023 (the day after its publication in the JDM).
• The other provisions of the Law (supplementary retirement pension, contributions, punishable offences, transfer to CMRC of rights acquired as a result of salaried activity in the Principality of Monaco with the French AGIRC ARRCO institutions) will only come into force on 1 January 2024.

About 168,000 employees in the Principality would be concerned (Source: https://monaco-hebdo.com/polit...)

More information on the official Website of the Monegasque Caisses sociales (FAQs)> https://www.info-retraite.mc/

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SUMMARY

Monegasque supplementary retirement pension CMRC for private sector employees:

• Entitlement to the CMRC supplementary pension is subject to the condition that a basic pension entitlement is open with the Caisse Autonome des Retraites (CAR) and that it gives rise to the payment of a pension.

The salaried activity must have been carried out in Monaco during periods (continuous or not) extending over a minimum of 10 years, and these periods of activity must include a minimum total period of effective work of 60 months.

If the conditions for entitlement to a supplementary pension are not met, the employee may claim reimbursement of the contributions.

• In principle, the right to a CMRC supplementary pension is acquired at the age of 65.
• Early retirement: the right to this pension can be acquired at the age of 60, or 55 for a woman who has raised at least three children until they were 16, without any reduction in the amount of the pension, if she stops working and is not receiving compensation for illness, an accident at work, an occupational disease or unemployment. In the event of resumption of a professional activity, the payment of pensions awarded before the age of 65 is suspended, except for partial or episodic professional activity of a supplementary nature and on condition that this activity is not incompatible with the receipt of an early retirement pension, the conditions of which are laid down by sovereign ordinance.
• Survivor's pension (the employee's surviving spouse receives a survivor's pension equal to 60% of that which the latter was entitled to on the day of his or her death, provided that a child was born of this union or that the marriage was contracted at least two years before the effective date of receipt of his or her pension by the person entitled to it or, failing that, that it had lasted at least four years on the day of the death, subject to remarriage or notorious cohabitation) and orphan's pension (up to the age of 18, or in the case of an apprenticeship or study, until the end of the study or apprenticeship. and up to the age of 25).
• Bonus benefit for holders of a direct, reversionary or orphan's pension under the CAR, benefiting, on the date of entry into force of Law No. 1.544, from a supplementary AGIRC-ARRCO pension and consisting, in whole or in part, of rights acquired as a result of salaried employment in the Principality (benefiting from a possible positive differential between the value of the CMRC pension point and the service value of the AGIRC-ARRCO pension point).

Previous system:

(With some exceptions) Private sector employees working on Monegasque territory contribute to the French supplementary pension scheme. The Agirc-Arrco scheme has been extended to companies in the Principality of Monaco (Convention collective retraite et prévoyance des cadres du 14 mars 1947 and Accord national interprofessionnel de retraite complémentaire du 8 décembre 1961). The Association Monégasque de Retraite par Répartition (AMRR) is competent to receive memberships.

Employees of the Principality whose salaried activity in the Principality represents at least 50% of their total salaried activity, may liquidate their Agirc-Arrco supplementary pension rights at the same time as their basic Monegasque CAR pension rights without any reduction* for insufficient career length.

Nevertheless, a 10% reduction for 3 years is applied to the amount of the Agirc-Arrco supplementary pension in the case of a settlement of the supplementary pension four calendar quarters after the date on which the employees have fulfilled the conditions for obtaining the full rate in the basic scheme.

*A reduction is applied to the amount of the pension if, on retirement, there are not enough quarters to obtain the full rate. The rate of reduction depends on the number of quarters missing to reach the full rate.