Expatriate pension: characteristics and calculation

What is the expatriate retirement?

The expatriate pension is a voluntary old-age insurance that expatriates can subscribe to by joining the Caisse des Français de l’altern (CFE). This option allows the member to build up a basic pension and a complementary pension that varies according to professional activity (articles R. 742-2 and D.742-6 of the Social Security Code).

Retirement for expatriates: conditions to benefit from it

Can benefit from the retirement of the CFE, the workers who contribute to the local scheme of the country of expatriation and decide to contribute voluntarily in addition to the French pension scheme via their membership in the CFE. This double affiliation imposes a double contribution on them, but gives them pension rights in both countries. The rights acquired under this accumulation vary according to the country of expatriation.

In the European Economic Area

If the expatriate has worked in one of the countries of the European Union, in Norway, Iceland, Switzerland or Liechtenstein, whether employed or self-employed, he will receive a pension calculated according to the following criteria:

• The minimum age specific to the legislation in force in each country

Example : a French person who has contributed in France and Spain will be able to apply for his pension in France at 62 years old. On the other hand, his Spanish pension can only be obtained at 65 years old. So, either he will liquidate his rights in France at 62 and his retirement will be recalculated when he turns 65 to take into account the extra years worked. Either he will work until the age of 65 in Spain and liquidate his pension rights in both countries at the same time.

• The total of periods validated in the 2 countries. The liquidation rate in a Member State is determined by retaining all quarters validated under the legislation of any Member State. However, periods completed in the territory of different States should not normally overlap.

In a country that has concluded a social security agreement with France

The applicable rules vary according to the country and the conventions which are nevertheless often copied with those applicable between the countries of the European Union. Bilateral agreements concerning employees have been concluded with the following countries: Algeria, Andorra, Argentina, Benin, Bosnia and Herzegovina, Brazil, Cameroon, Canada, Cape Verde, Chile, Congo, South Korea, Ivory Coast , United States, Gabon, Guernsey, Isle of Man, India, Israel, Japan, Jersey, Kosovo, Macedonia, Mali, Morocco, Mauritania, Monaco, Montenegro, Niger, New Caledonia, Philippines, French Polynesia, Quebec, Saint- Marin, Saint-Pierre-et-Miquelon, Senegal, Serbia, Togo, Tunisia, Turkey, Uruguay.

Regarding the self-employed, the number of agreements signed is smaller and concerns the following countries outside the EU: Andorra, Argentina, Brazil, Canada, Chile, South Korea, United States, India, Japan, Morocco, New Caledonia, French Polynesia, Quebec, Saint-Pierre and Miquelon, Tunisia, Uruguay.

Good to know : the accumulation of quarters completed abroad with those paid in France is limited to a single country. An expatriate who has worked in two countries will therefore have to choose between the two agreements before applying for his retirement pension.

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In countries that have not signed a bilateral agreement with France

The French pension will be calculated on the basis of the only quarters validated in France. Depending on the countries where the expatriate has worked, he may be eligible for a local pension. But nothing is certain in the absence of an agreement and the expatriate will have to fend for himself to assert his possible rights.

How is the CFE retirement pension calculated?

Depending on your situation and the country in which you worked, the calculation of your pension rights is different. This calculation will depend on the countries concerned.

At the level of the European Area

The calculation is carried out in 3 times:

1 – We start by calculating the duration of contribution required by adding all the quarters contributed in all the countries.

2 – Then the calculation of the pension due by each country is carried out by retaining the amount most favorable to the insured resulting from the following 2 methods:

• 1st method – national pension: each country calculates the pension according to national legislation and the number of quarters contributed in the country.
• 2nd method – community pension: each country calculates the pension to which the worker could have been entitled in view of all the quarters contributed at community level. This amount is then reduced in proportion to the quarters contributed in each country.

3 – Each country retains the highest amount resulting from the 2 methods. Then the total pension is obtained by adding the pensions of the different countries. Each country then pays the share thus determined directly to the retiree.

Good to know : if the sum of the pensions is too low, the conditions of the French minimum old age apply and France will pay the resulting additional allowance.

In a country that has signed an agreement

Your pension will be calculated according to each agreement (country by country). The most advantageous calculation will be used.

In a country that has not signed a social security agreement with France

In this case, the retirement will be calculated only on the basis of periods spent in France, quarters worked abroad not being taken into account. If the legislation of the country so provides, a retirement pension corresponding to the period worked will be paid.