Understanding ARRCO, AGIRC, and Contingency Fund ContributionsThis chapter provides an overview of Association des Régimes de Retraites Complémentaires (ARRCO), Association Générale des Institutions de Retraite des Cadres (AGIRC), and contingency fund contributions and discusses how to:
View and maintain ARRCO, AGIRC, and contingency fund rates.
View delivered ARRCO, AGIRC, and contingency fund deductions.
Note. The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for France. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 8.9 PeopleBook.
See Also
Viewing the Delivered Elements
Understanding ARRCO, AGIRC, and Contingency Fund ContributionsThis section discusses:
ARRCO, AGIRC, and contingency fund contributions.
Rates, limits, and ceilings.
Contribution exception limits.
Tax and limits.
ARRCO, AGIRC, and Contingency Fund Contributions
Both the ARRCO and AGIRC manage pension funds. Each comprises employer and payee contributions. Most payees, except for apprentices and trainees, for example, are liable for contributions to ARRCO or AGIRC funds.
Contributions to ARRCO and AGIRC are based on the same funding bases as for URSSAF and ASSEDIC, with one difference. If the employer contributions for retirement and contingency submitted to URSSAF exceed 85 percent of the social security ceiling A (or 19 percent for the contingency only contributions), the part of the contributions over the ceiling is included in the URSSAF funding base but is not included in the ARRCO and AGIRC funding bases.
Because contributions paid to the Association Pour l'Emploi des Cadres (APEC) are first paid to AGIRC and then paid to APEC, they are managed with the other AGIRC contributions. These include lump sum APEC contributions and the APEC contribution base on slice B.
Because Contribution Exceptionnelle Temporaire (CET) and AGFF contributions are paid to AGIRC, it is also managed with the other AGIRC contributions.
Contingency funds supplement the standard social security (URSSAF) payments. There is a single mandatory payment, paid by all companies, for employees categorized in Article 36 or Article 4/4 bis. All other payments are voluntary. Each organization deals with contingency contributions in its own way and needs to set up its own rules to handle its calculations.
See Also
Defining ASSEDIC Contributions
Rates, Limits, and Ceilings Global Payroll for France uses rates, limits, and ceilings to determine ARRCO, AGIRC, and contingency contributions. PeopleSoft delivers this data, but you should verify it before proceeding with ARRCO, AGIRC, and contingency processing. You should:
Use the Rates, Elements, and Limits component to view the variables that pertain to the contributions to these funds.
Use the Ceilings page to view the monetary value of these limits, which the system uses to calculate the funding bases for ARRCO, AGIRC, and contingency contributions.
Use the ARRCO/AGIRC/Contingency Rates component to enter the numeric values for the various contribution rates.
The ceilings appearing on this page are dynamically displayed based on the values on the Ceilings page. For example, if you enter a new ceiling on the Ceilings page, the ceiling data also changes when you view the ARRCO/AGIRC/Contingency Rates component.
See Also
Contribution Exception Limits The government sets the annual social security contribution ceiling. If the employer contributions to contingency funds and additional pension funds (ARRCO and AGIRC) are less than 85 percent of the annual social security ceiling, then these contributions are exempted from social security contributions. If the employer contribution to contingency funds is less than 19 percent of the social security ceiling, these are also exempt from contributions. If both the 85 percent limit and the 19 percent limit are exceeded, the largest excess amount is added to the URSSAF and ASSEDIC accumulators and reintegrated into the social security base. This has no impact on the pension fund contribution.
Three calculations are required to determine the limits:
Contributions to contingency funds and additional pension funds are checked against the limit of 85 percent of the annual social security ceiling.
Any excess is paid into the social security base.
Contributions to contingency funds only are compared to 19 percent of the total funding base.
Any excess is added to the social security and ASSEDIC funding base.
Note. If both the 19 and 85 percent limits are exceeded, only the largest excess amount is reintegrated into the social security and ASSEDIC base.
These calculations are performed by the PRV FM REINT SOCIA formula, which is triggered by the PRV SE SOCIAL section. This formula performs the calculation for departing employees or during the month of December.
Tax and Limits For a temporary period (for years beginning on 1 January 2004), two methods must be used to calculate taxes on contingency and additional pension funds. The method that calculates the smallest amount is the one accepted as the true calculation, and the smallest amount is the one reinstated in the taxable salary.
Note. PeopleSoft doesn't deliver the taxable exemption rules for additional retirement funds.
The first methods calculates the exemption limit once a year, in the case of departure, or in December. It is triggered at the same time as the 19 and 85 percent exemptions.
The second method:
Calculates a ceiling equal to 7% of the annual social security ceiling plus 3% of the payee's yearly compensation. This ceiling is limited to 3% of 8 times the annual social security ceiling.
Compares the yearly contributions to the contingency funds to this ceiling. The amount of contributions over the ceiling is the amount to be reinstated.
The smallest amount calculated by these methods is the amount reinstated.
Note. The calculations of these tax limits is done by the formula PRV FM REINT FISCA, which is a member of the PRV SE FISCAL section. The contingency contributions used in these calculations are stored in the accumulator PRV AC COT RFIS SG.
Voluntary Contributions to Contingency Funds and Additional Pension Funds
In the case of voluntary contributions, both the payee and employer contributions are liable to tax. The payee contributions are not deducted from the taxable net salary and the employer contributions are added to the taxable net salary. The PeopleSoft system does not manage voluntary contributions; you must update the accumulators.
If contributions are mandatory, they are not subject to tax if they are below the legal limits. There are two limits: one for contingency and pension funds and one for contingency funds only. The first limit is for contributions to contingency funds and pension funds. If the contributions from payee and employer do not exceed 19 percent of the annual social security ceiling multiplied by 8, they are not liable to tax. The second limit is for contributions to contingency funds only. If the payee and employer contributions do not exceed 3 percent of the annual social security ceiling multiplied by 8, they are not liable to contributions. If contributions exceed either limit, the surplus is reintegrated back into the taxable base and is liable for tax. If contributions exceed both limits, the largest surplus is added to the net salary. The PeopleSoft system provides the PRV AC 19% FIS SG accumulator and the PRV AC 3% FIS SG accumulator to calculate these limits in the PRV FM REINT FISCA formula. It is your responsibility to update these accumulators.
There are two retirement contribution rates: the contractual rate and the calling rate. The difference between these two rates relates to contributions that do not give entitlements for pension points. For the reinstatement of retirement contributions over the tax limits, the system uses the calling rate to compare the retirement contribution to the limits. The contributions are reinstated in the taxable salary depending on their contractual rate. This is because contributions that do not give entitlements to pension points are not reinstated in the taxable salary.
The employer contributions to contingency and retirement that are over the 3 or 19 percent limit are also included in the levy on salary funding base. The amount that is added to the levy on salary funding base is calculated in the following manner:
If the limit is only exceeded by the contingency contributions (3 percent limit), the amount over the limit is prorated and is calculated depending on the employer’s and payee’s contingency contributions.
The calculation is:
(amount over the limit) × (employer’s contingency contributions) ÷ (employer’s + payee’s contingency contributions)
If the limit is only exceeded by the contingency plus retirement contributions (19 percent limit), the amount over the limit is prorated depending on the employer’s and payee’s retirement contributions.
The calculation is:
(amount over the limit) × (employer’s retirement contribution) ÷ (employer’s + payee’s retirement contributions)
If both of the limits (3 and 19 percent) are exceeded, the highest amount over the limits is prorated depending on the total contributions to contingency and retirement funds.
The calculation is:
(highest amount over the limit) × (employer’s contingency + retirement contributions) ÷ (employer’s and payee’s contingency + retirement contributions)
See Also
Establishing Levy Rates on Salaries
Viewing and Maintaining ARRCO, AGIRC, and Contingency Fund Rates
To view and maintain ARRCO, AGIRC, and Contingency Fund rates, use the ARRCO/ AGIRC/ Contingency Rt FRA (GPFR_ARC_RATES) component.
This section discusses how to:
View contribution rates for ARRCO.
View contribution rates for AGIRC and CET.
View APEC rates and flat amount for managers.
View AGFF rates.
View mandatory rates for contingency funds paid by employers.
View delivered ARRCO, AGIRC, and contingency fund elements.
Pages Used to View and Maintain ARRCO, AGIRC, and Contingency Rates|
Page Name |
Object Name |
Navigation |
Usage |
|
ARRCO Rates |
GPFR_ARC_RATES |
Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Addl Rates, Ceilings, Values, ARRCO/ AGIRC/ Contingency Rt FRA, ARRCO Rates |
View the contribution rates for ARRCO. The PeopleSoft system is delivered with these rates, but you must maintain them when the government makes changes. |
|
AGIRC Rates |
GPFR_AGI_RATES |
Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Addl Rates, Ceilings, Values, ARRCO/ AGIRC/ Contingency Rt FRA, AGIRC Rates |
View the contribution rates for AGIRC, CET, and APEC. AGIRC contributions are for the non-management pension fund, CET contributions are paid into a special AGIRC fund, and APEC contributions are paid into a managers' unemployment benefit fund. The PeopleSoft system is delivered with these rates, but you must maintain them when the government makes changes. |
|
APEC |
GPFR_APEC |
Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Addl Rates, Ceilings, Values, ARRCO/ AGIRC/ Contingency Rt FRA, APEC |
View the APEC flat amount for managers. The PeopleSoft system is delivered with these rates, but you must maintain them when the government makes changes. |
|
AGFF Rates |
GPFR_AGFF_RATES |
Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Addl Rates, Ceilings, Values, ARRCO/ AGIRC/ Contingency Rt FRA, AGFF Rates |
View the AGFF rates for employees (based on slices 1 and 2), and for Article 36 and managers (based on slices A and B). |
|
Contingency Rates |
GPFR_CONT_RATES |
Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Addl Rates, Ceilings, Values, ARRCO/ AGIRC/ Contingency Rt FRA, Contingency Rates |
View the mandatory rates for contingency funds paid by the employer for management classes Article 36 and Article 4/4 bis. The PeopleSoft system is delivered with these rates, but you must maintain them when the government makes changes. |
Viewing Contribution Rates for ARRCO
|
Non-Managers Slice 1 |
Displays the contribution rates for the pension fund for both employer and payee. The rates are expressed as a percentage of the payee’s funding base. The non-managers slice 1 rate is applied to funding bases below the A ceiling. The A ceiling is populated from the Ceiling page. |
|
Non-Managers Slice 2 |
Displays the second rate of the pension fund contribution that is applied to non-management payees when the gross salary is between the A ceiling and the A ceiling multiplied by three, known as slice 2. |
|
Article 36 and 4/4bis Slice A |
Displays the contribution rates for slice A that is paid to ARRCO by those payees categorized by Article 36 and Article 4/4 bis. This rate also applies to payees with salaries below the A ceiling. Note. The fields From <lower limit> to <upper limit> dynamically appear based on the values entered on the Ceilings page. Ceiling values are in euros. The ceilings shown are current as of January 1, 2004. |
See Also
Viewing Limits Associated With Variables
Viewing Contribution Rates for AGIRC and CET Access the AGIRC Rates page.
|
Slice B+GMP+Isolated Amounts (slice B + garantie minimum de points + isolated amounts) |
Displays the AGIRC contribution rates for both employer and payee, for those payees with earnings between the A and B ceilings or on the specific GMP slice. The rates are expressed as a percentage of the payee’s funding base. These rates apply to payees classified by Article 36 and Article 4/4 bis. Note. GMP contributions are for the minimum guarantee of points. Payees earning below the GMP limit pay a minimum contribution as
if they were earning the same as the limit. Although the GMP contribution is based on an annual amount, the PeopleSoft system
performs the calculation monthly and adjusts the contributions accordingly. The GMP ceiling is defined on the Ceilings page.
The calculation of the GMP base is done by the base formula of the GMP deduction. |
|
Slice C+Isolated Amounts |
Displays the AGIRC contribution rates for both payee and employer, for payees with a gross funding base between slice B and slice C. These rates apply to payees classified by Article 36 and Article 4/4 bis. |
|
C.E.T. Slice ABC |
Displays the CET contribution for payees and employers on a gross funding base up to the C ceiling. These rates apply to payees classified by Article 36 and Article 4/4 bis. |
See Also
Viewing Limits Associated With Variables
Viewing APEC Rates and Flat Amount for Managers Access the APEC page.
|
APEC for Managers Slice B |
Displays the payee and employer contributions for managers with a funding base between the A and B ceilings. These contributions are paid monthly. These rates apply to payees classified by Article 4/4 bis. Note. The field names From <lower limit> to <upper limit> dynamically appear based on the values entered on the Ceilings page. The ceilings shown are current as of 1 January 2004. |
|
APEC Flat Amount for Managers |
Displays the fixed, annual contribution paid every March by employer and payee for those payees in employment during that month. |
See Also
Viewing AGFF Rates Access the AGFF Rates page.
|
Non Managers Slice 1 |
Displays the contribution rates that are paid on slice 1 for the AGFF contribution for both employer and payee. The non-managers slice 1 rate is applied to funding bases below the A ceiling. |
|
Non Managers Slice 2 |
Displays the second rate of the AGFF contribution that is applied to non-management payees when the gross funding base is between the A ceiling and the A ceiling multiplied by 3, known as slice 2. |
|
Article 36 & 4/4bis Slice A |
Displays the AGFF contribution rates for slice A that is paid by payees categorized as Article 36 and Article 4/4 bis. |
|
Article 36 & 4/4bis Slice A |
Displays the AGFF contributions rates for slice B that is paid by payees categorized as Article 36 and Article 4/4bis. |
Note. New AGFF contributions are not included in the reintegration fiscale (fiscal reintegration) calculation.
Viewing Mandatory Rates for Contingency Funds Paid by EmployersAccess the Contingency Rates page.
|
Contribution Art 36 & 4/4bis (contribution Articles 36 et 4/4 bis) |
Displays the mandatory employer contribution to the contingency fund for payees in management class Article 36 and Article 4/4 bis. The contributions are limited to salaries below the A ceiling. The employer contribution is included in the funding base of CSG, CRDS, and the 8 percent contingency levy. The contribution base is the same as for URSSAF, with the exception of the reintegration of amounts over the 85 percent and 19 percent exemption limits. The payment is made to a registered organization and linked to a contract number. Note. The field name From <lower limit> to <upper limit> dynamically appears based on the values entered on the Ceilings page. The ceiling shown is current as of January 1, 2004. |
Note. Use the DUCS functionality to generate reports for ARRCO and AGIRC.
See Also
Viewing Delivered ARRCO, AGIRC, and Contingency Fund Elements This section discusses these deductions delivered by Global Payroll for France:
ARRCO and AGIRC deductions.
Contingency fund deductions.
ARRCO and AGIRC Deductions This section discusses these deductions:
ARRCO contributions
AGIRC contributions
APEC contributions
AGFF contributions
ARRCO Contributions
This table lists the ARRCO deductions:
|
ARRCO Deduction |
Description |
|
ARC T1 NC S |
Payee ARRCO contribution for non-manager on slice 1. |
|
ARC T1 NC E |
Employer ARRCO contribution for non-manager on slice 2. |
|
ARC T2 NC S |
Payee ARRCO contribution for non-manager on slice 2. |
|
ARC T2 NC E |
Employer ARRCO contribution for non-manager on slice 2. |
|
ARC TA A36 S |
Payee ARRCO contribution for Article 36 on slice A. |
|
ARC TA A36 E |
Employer ARRCO contribution for Article 36 on slice A. |
|
ARC TA A4 S |
Payee ARRCO contribution for Article 4 on slice A. |
|
ARC TA A4 E |
Employer ARRCO contribution for Article 4 on slice A. |
AGIRC Contributions
This table lists the AGIRC deductions:
|
AGIRC Deduction |
Description |
|
AGI TB A36 S |
Payee AGIRC contribution for Article 36 on slice B. |
|
AGI TB A36 E |
Employer AGIRC contribution for Article 36 on slice B. |
|
AGI TC A36 S |
Payee AGIRC contribution for Article 36 on slice C. |
|
AGI TC A36 E |
Employer AGIRC contribution for Article 36 on slice C. |
|
SI TB A36 S |
Payee AGIRC isolated amounts contribution for Article 36 on slice B. |
|
SI TB A36 E |
Employer AGIRC isolated amounts contribution for Article 36 on slice B. |
|
SI TC A36 S |
Payee AGIRC isolated amounts contribution for Article 36 on slice C. |
|
SI TC A36 E |
Employer AGIRC isolated amounts contribution for Article 36 on slice C. |
|
AGI TB A4 S |
Payee AGIRC contribution for Article 4 on slice B. |
|
AGI TB A4 E |
Employer AGIRC contribution for Article 4 on slice B. |
|
AGI TC A4 S |
Payee AGIRC contribution for Article 4 on slice C. |
|
AGI TC A4 E |
Employer AGIRC contribution for Article 4 on slice C. |
|
SI TB A4 S |
Payee AGIRC isolated amounts for Article 4 on slice B. |
|
SI TB A4 E |
Employee AGIRC isolated amounts for Article 4 on slice B. |
|
SI TC A4 S |
Payee AGIRC isolated amounts for Article 4 on slice C. |
|
SI TC A4 E |
Employee AGIRC isolated amount for Article 4 on slice C. |
|
AGI GMP S |
Payee GMP contribution for Articles 36 and 4. |
|
AGI GMP E |
Employer GMP contribution for Articles 36 and 4. |
|
AGI CET S |
Payee C.E.T. contribution for Article 4 on slice ABC. |
|
AGI CET E |
Employer C.E.T. contribution for Article 4 on slice ABC. |
This table lists the APEC deductions:
|
APEC Deduction |
Description |
|
APEC TB A4 S |
Payee APEC contribution for Article 4 on slice B. |
|
APEC TB A4 E |
Employer APEC contribution for Article 4 on slice B. |
|
APEC FF A4 S |
Payee flat amount APEC contribution for Article 4. |
|
APEC FF A4 E |
Employer flat amount APEC contribution for Article 4. |
|
SI APEC TB S |
Payee APEC slice B on isolated amounts. |
|
SI APEC TB E |
Employer APEC slice B on isolated amounts. |
This table lists the AGFF deductions:
|
AGFF Deduction |
Description |
|
AGFF T1 NC E |
Employer AGFF contribution for non-manager on slice 1. |
|
AGFF T1 NC S |
Payee AGFF contribution for non-manager on slice 1. |
|
AGFF T2 NC E |
Employer AGFF contribution for non-manager on slice 2. |
|
AGFF T2 NC S |
Payee AGFF contribution for non manager on slice 2. |
|
AGFF TA A36E |
Employer AGFF contribution for Article 36 on slice A. |
|
AGFF TA A36S |
Payee AGFF contribution for Article 36 on slice A. |
|
AGFF TB A36E |
Employer AGFF contribution for Article 36 on slice B. |
|
AGFF TB A36S |
Payee AGFF contribution for Article 36 on slice B. |
|
AGFF SI A36E |
Employer AGFF contribution for Article 36 on isolated amounts. |
|
AGFF SI A36S |
Payee AGFF contribution for Article 36 on isolated amounts. |
|
AGFF TA A4 E |
Employer AGFF contribution for Article 4 on slice A. |
|
AGFF TA A4 S |
Payee AGFF contribution for Article 4 on slice A. |
|
AGFF TB A4 E |
Employer AGFF contribution for Article 4 on slice B. |
|
AGFF TB A4 S |
Payee AGFF contribution for Article 4 on slice B. |
|
AGFF SI A4 E |
Employer AGFF contribution for Article 4 on isolated amounts. |
|
AGFF SI A4 S |
Payee AGFF contribution for Article 4 on isolated amounts. |
Contingency Fund Deductions This table lists the contingency fund deductions that Global Payroll for France delivers:
|
Contingency Fund Deduction |
Description |
|
PRV OB A36 E |
Contingency mandatory contribution for Article 36 employees. |
|
PRV OB A4 E |
Contingency mandatory contribution for Article 4 managers. |
Note. The PeopleSoft system provides a query that you can run to view the names of all delivered elements designed for France. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 8.9 PeopleBook.
See Also
Viewing the Delivered Elements