The French pension system relies on the principle of pay-as-you-go (PAYG), whereby workers finance today's retirees and thus acquire rights to their future pensions.
For private sector employees, pensions are addressed by two obligatory schemes (the basic scheme and the complementary scheme), and eventually, an optional scheme (supplementary pensions).

The three French pension schemes

The general Social Security scheme (Old-Age Insurance)	1	All employees are obligated to contribute to the National Old Age Pension Fund (CNAV - Caisse National d'Assurance Vieillesse), thus acquiring contribution "terms" over the years. The rights accumulated depend on the employee's salary level and the length of his participation in the system.
Complementary pension schemes (AGIRC - ARRCO)	2	All employees are also obligated to contribute to an institution associated with the ARRCO and an institution associated with the AGIRC (for managerial staff only) in order to acquire points. The rights are proportional to the sums paid: the more and the longer you contribute, the more valuable the points acquired, and the higher the retirement pension.
Supplementary pensions	3	Supplementary pensions, also known as pension savings, are optional pensions offered by certain companies (but are also available directly to individuals) and are essentially pre-funded pension schemes.

NOVALIS information:
NOVALIS Group manages two complementary pension regime institutions:
- The NOV. RS for the ARRCO
- The NOV. RC for the AGIRC
NOVALIS Prévoyance offers supplementary pensions.
Please do not hesitate to contact us for more information.

- Within Social Security's basic scheme, every employee accumulates validated terms.

Average annual salary	X	rate	X	(number of health insurance terms/ 160)	=	Social Security pension
Salary averaged from the 25 highest paid years		Pension calculation rate between 25 and 50%, determined by the duration of insurance and age				Subject to a ceiling of 50 % of the Social Security monthly ceiling (PMSS)

- Within the AGIRC et ARRCO complementary schemes, paid contributions allow you to acquire retirement points.

Calculation of points :

Salary	X	contractual rate
-----------------------------------------------------------------------------
Reference salary (cost of buying a point)

Calculation of the complementary pension total:
AGIRC pension = number of points x point value (reevaluated regularly)
ARRCO pension = number of points x point value (reevaluated regularly)

The overall pension total is at least equal to:
Social Security pension + ARRCO pension + AGIRC pension (for managerial staff only)

Please note :
In the event of unemployment compensated by ASSEDIC (Association for Employment in Industry and Commerce), or illness, industrial accidents, maternity, and invalidity compensated by Social Security, retirement points may be accorded without cost to the employee.