Retirement: Steps to Liquidate Your Pensions at the Peak
Successful retirement is about liquidating your pension under the best conditions and being informed (age and amount), and for that, we advise you to follow the steps to optimize this unique moment in your career and life, as it only happens once.
The steps for a successful retirement first consist of determining the age at which you wish to retire, then formalizing your request with your employer, and finally complying with the administrative formalities for departure with the pension funds. Proper compliance and follow-up of these steps will help you avoid receiving your pensions late or even – and this is more serious – receiving them from a date later than the date you initially chose.
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We can take care of your retirement through the Term Liquidation Benefit with our retirement advisors
Diagnosing your file is also useful and it doesn’t take much time if you use the right simulator that can provide you with information specific to your career profile: free retirement diagnosis here
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To answer your questions about the conditions of your retirement, we offer a retirement interview with a consultant, find the service here
… To assist you in your procedures and formalities to liquidate your pensions, feel free to leave us a message asking what we can do for you…
Step 1: Ensure Retirement Age
Currently, the legal retirement age is 62, but that does not mean you will receive the full rate (the full rate is a pension of 100%). To determine your full-rate departure age and make the best choice, I invite you to consult the articles below that explain and detail how you can estimate and choose your retirement age based on the financial consequences of this choice.
Long Career Retirement Previously Known as Early Retirement
Long career retirement is the mechanism that allows you to retire earlier and before the legal retirement age. Do you want to retire as early as 60 instead of the required 62 if you were born before 1956? Then read this technical file that will help you see more clearly about the best way to retire faster…
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Retirement Age
The legal retirement age is now 62, previously varying between 60 and 62 depending on the year of birth, always before 60 for everyone, and going back in time before 1982 and the Mauroy reform that established the retirement age at 60, the departure age was then 65, while life expectancy was only 75 years…
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How Many Quarters Are Needed to Retire
The number of retirement quarters required to receive a full-rate pension after 43 years of contributions applies to those born after 1972. Since the 2010 reform, in addition to the legal departure age which has been raised to 62, a certain number of contributions must be paid for increasingly more years to benefit from the full rate…
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What is the Buyback of a Retirement Quarter?
In compensation for the increase in the duration of insurance, the law offers the buyback of missing quarters for retirement. Buyback is only possible in three scenarios: buying back incomplete professional years: unemployment, part-time work, etc. To buy back years of higher education or to buy back past years…
Learn more Optimizing your retirement age is an important goal for a business leader or professional as it leads to the end of their contributions and not necessarily their professional activity. We talk about cumulative employment retirement, a very advantageous status for those who will best organize their remuneration. active retiree.
As an employee, the situation is different since the chosen departure date often results from an exchange with the employer, even when it comes to establishing a departure plan.
As of January 1, 2009, the employer can no longer ask an employee to retire before the age of 70. Thus, employees who wish to continue their activity beyond 67 years and thereby improve their retirement by benefiting from bonuses and bonus points can do so without their employer opposing it. But if the employer still wants to let the employee go, this departure will be characterized as a dismissal without real and serious cause, and the latter will receive the allocations.
Conclusion: Since the employer cannot retire before the age of 70, the initiative for departure often falls to the employee, or if the employer wants to retire before the age of 70 and the employee does not want to, it results in a dismissal.
Administrative Step 2: Submit Your Retirement Request in Compliance with Legal Obligations and Formalities
Retirement: Employee Initiated Retirement
Voluntary retirement allows the employee to terminate their contract of employment when they reach the legal retirement age in order to receive an old-age pension. In this case, the employee must inform their employer. The Labor Code does not impose a special form to notify the employer of their retirement, but it is advisable, to determine the exact date of the start of the notice, to inform the employer by registered letter with acknowledgment of receipt.
You must comply with the two-month notice period (or one month if you have less than 2 years of service in the company) or any other period provided for by the collective agreement) and by notifying your employer by registered letter with acknowledgment of receipt. To do this, you need to know your full-rate departure age; because you will not be able to oppose an error in the implementation of your departure by your employer.
Retirement: Employer Initiated Retirement
It can only occur at 70 years.
But before 70 years, the employer must question the employee three months before their birthday, preferably by registered letter with acknowledgment of receipt. They must comply with the legal notice of one month for an employee whose seniority is between 6 months and less than 2 years and beyond two months. The applicable collective agreement for the company may provide for a more favorable notice period for retirement. If the employee responds positively, the employer will be able to initiate the retirement procedure. On the other hand, if the response is negative within a month, the employer will not be able to initiate the retirement procedure. If the employee does not respond, this will be considered as acceptance on their part. And finally, if the employer does not comply with the procedure, the retirement will be reclassified as dismissal without real and serious cause. The employer can retire when the employee has reached the legal retirement age or when they have reached the retirement age. However, the employee’s consent is required to retire.
Tax Difference Between Employee or Employer Initiated Departure:
Benefits received in the context of voluntary departure are fully taxable while they are exempt from income tax up to the legal amount and 5 times the annual social security ceiling (i.e., €196,140 for 2017) for retirement. This exemption limit for benefits also applies in the case of dismissal. For more information, we invite you to visit the page dedicated to the tax on retirement departure indemnities on the tax site: http://impotsurlerevenu.org/declarer-ses-revenus/719-indemnites-de-depart-quelle-imposition-.php
Retirement: What Are Your Rights?
Time limits for letters with your employer, calculation of the legal departure indemnity, we tell you more here…
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Step 3: The Administrative Processing of Retirement
Caution: for any request for early retirement for long careers, you must first, and this before any procedure related to the retirement itself, request long career eligibility, you can download the long career eligibility request form from the pension insurance website (CNAV) here: Long career eligibility form.
For the retirement request, you must obtain a personal retirement request form from social security agencies, retirement welcome points, or online on the CNAV website that you will find directly here: cerfa retirement request form n°51672. Since the law of November 9, 2011, this is a single pension request for both the basic and complementary pension. The request must be submitted to the pension insurance fund for the last professional activity. In case of rejection, the refusal must be justified and indicate the possible appeals, and you can always appeal to the amicable appeal commission.
Despite the unique application introduced in 2011, our advice is to always send requests to each of the schemes you have contributions to. We have seen in recent years CARSAT and old-age insurance funds that could not respond to all retirement requests made to them, leading to some files being misled and claimed not to have received them, even with a registered letter acknowledgment of receipt! Also, by applying to each of the schemes, you secure your departure: indeed, another basic plan (for multi-pensioners) or receiving a request informs the general plan, which receives information about your retirement twice. You also have additional proof of the selected date.
What is the deadline for all these requests and how long before the request should it be made?
Until 2010, it was necessary to send requests 6 months in advance, which is no longer the case. If you send your forms too early, including 6 months or more before your departure date, you have 2 risks:
- that the file is set aside and lost in the fund without you being informed
- that the recovery returns your file and asks you to come back later
The correct deadline for sending a retirement request is about 4 months before the chosen retirement date and a retirement effective date should be set. This notion is very important because, in case of a dispute later, a review of pensions will be conducted based on this effective date, if the review itself complies with the required forms to be taken into account.
Can we make a last-minute request?
You discover that you can benefit from a full-rate pension at the end of the month and there is nothing against your possibility of leaving? Why wait? Every month that exceeds your full-rate retirement date is a month of lost retirement pension.
Be aware that you can request your retirement up to the day before the first day of the month of your departure. Regarding taxes, you have until the eve of midnight of the deadline to file your return. In this case, the effective date of retirement will be retained and you will receive a retroactive pension, even if the file is not complete until after 6 months and payments are made in the order of 6 or 8 months later.
Do you receive your pension notice? This is a good thing as it means you start receiving your pensions according to the terms indicated in this notice.
RETIREMENT FILE: STEPS, INFORMATION, AND SUPPORTING DOCUMENTS
Consultants’ advice for presenting a complete retirement file…
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STEP 4: RECEIVE A PENSION, LIQUIDATION
Pension notifications are the final calculations and payment certificates for your pensions. You should receive as many notifications as you have pension schemes; for example, a managerial employee will need to receive their CNAV notice (basic otherwise known as pension insurance) and their ARRCO AGIRC notification (complementary), and a senior executive who has been in a liberal profession will need to receive the aforementioned notifications plus the base CIPAV and complementary CIPAV.
Caution: do you disagree with the amount stated on the notification? You have a period of two months to contest the calculation of your retirement. As soon as a dispute is ongoing and has not been resolved definitively, you can always seek redress. In fact, we have several examples of clients who contested the amount that had been calculated at the time of departure and when they came to see us years later for adjustments, they received the adjusted amount retroactively that they had contested, which is around €150,000…
NOTE: Pension notices differ from the gross amounts of pensions. It will need to be deducted from the CSG CRDS, which significantly increased in 2018. The retirement abroad allows you not to be deducted from the CSG CRDS and for some civil servants even the allowances granted when you pass your retirement in the DOM/TOM.
For more details on our support for retirement liquidation through a retirement advisor, please visit this page:
Conclusion
Retirement is not improvised, and for that, we offer a checklist of the 10 mistakes we have encountered most often. Some have cost our clients dearly, and it was sometimes too late to revert to a past situation, which is why I give you a free piece of advice: read our articles carefully, and do not hesitate to ask us a question!
For the liquidation of your pension:
► Do you not know at what age to retire or what amount?
► Do you not want to take care of the administrative part?
► Do you need a technical arbitration (unemployment, cumulative retirement, gradual dismissal) ?
► Are you not satisfied with the responses from the “Funds”?
► Have you had many employers?
► Have you been expatriated and worked abroad?
► Do you wish to retire as soon as possible?
► Do you not want to spend hours on this file?