Defining ARRCO, AGIRC, and Contingency Fund Contributions

This 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 and AGIRC rates.

• View delivered ARRCO and AGIRC deductions.

• Set up contingency fund contributions.

• View delivered 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 9.0 PeopleBook.

See Also

Understanding How to View Delivered Elements

Understanding ARRCO, AGIRC, and Contingency Fund Contributions

This 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

Contribution Exception Limits

Defining URSSAF Contributions

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/Limits FRA component to view the variables and limits used to calculate the contributions to these funds.

• Use the Ceilings FRA component 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 Rt FRA component to enter the numeric values for the various ARRCO and AGIRC 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 on the AARRCO/AGIRC Rt FRA component.

• Use the Pension/Contingency Contract page in the Human Resources application to enter contribution rates for contingency funds directly in the contingency contract.

See Also

Setting Up Country Data

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.

Mandatory Contributions

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 and AGIRC Rates

To view and maintain ARRCO, AGIRC, and Contingency Fund rates, use the ARRCO/AGIRC 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.

Pages Used to View and Maintain ARRCO and AGIRC Rates

Viewing Contribution Rates for ARRCO

Access the ARRCO Rates page.

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 and Updating Ceilings

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. Isolated amounts are payments in lieu of a payee leaving a company. They are isolated from the funding base and do not accumulate contribution points towards the payee’s retirement fund. They are liable for contributions, regardless of upper and lower limits. They include compensation in lieu of paid vacation; retirement allowance for an amount exceeding ther legal exemption limit; and salary, premium, or bonus payments paid after departure.
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 and Updating Ceilings

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 Delivered ARRCO and AGIRC Deductions

This section discusses:

• ARRCO deductions.

• AGIRC deductions.

• APEC deductions.

• AGFF deductions.

ARRCO Deductions

This table lists the ARRCO deductions:

AGIRC Deductions

This table lists the AGIRC deductions:

APEC Deductions

This table lists the APEC deductions:

AGFF Deductions

This table lists the AGFF deductions:

Setting Up Contingency Fund Contributions

This section provides an overview of contingency funds calculation and discusses how to set up contingency funds for contribution calculation.

Understanding Contingency Fund Calculations

The contingency funds functionality for Global Payroll for France integrates with the contingency funds management functionality in Human Resources for France. The system uses arrays to retrieve new and additional data from Human Resources that the system needs to process contingency fund deductions. After retrieving the data from the contingency contracts definition, the system creates contingency fund deductions using the Global Payroll core multiple-resolutions functionality with accumulator drivers. The system retrieves all contracts assigned to a given payee, and then generates as many instances of the contingency contribution deduction as there are contracts for the payee.

The delivered deduction elements are the PREVOYANCE S deduction for payee contingency contributions and PREVOYANCE E for employer contingency contributions. Both deductions are driven by the same driver accumulator PRV AC PILOTE, which has the following accumulator keys: membership number, contribution type, population category, and mandatory/optional flag. Then, for each unique accumulator instance—that is, for each unique set of keys— the system can generate both employee and employer contributions.

Contingency Fund Rates

To assign rates to contingency funds you must enter them directly in the contingency contract on the Pension/Contingency Contract page in the Human Resources application. The system retrieves these rates by the arrays reading the contract. The system stores the rates in dedicated accumulators per contingency contract. The system uses the PRV AC TX PAT accumulator for the employer rate and the PRV AC TX SAL accumulator for the employee rate.

In previous releases customers used the Contingency Rates page to view the mandatory rates for contingency funds paid by the employer for management classes Article 36 and Article 4/4 bis. If you are upgrading from a previous release, you must set the inactivation date of the contingency funds rates as defined on the former Contingency Rates page to reflect the date when you want to apply the new rules.

Contingency Fund Contributions and Fiscal Net

Mandatory and optional contracts impact the fiscal net differently. For mandatory contingency contributions, the system deducts the payee part from the fiscal net. For non-mandatory contingency contributions, the system adds the employer part to the fiscal net. The system stores the values for the fiscal net in the GEN AC NET FISCAL accumulator. This accumulator has two members: the PREVOYANCE E deduction for employer contributions and the PREVOYANCE S deduction for payee contributions. The variables PRV VR ALIM S and PRV VR ALIM P determine the percentage of deductions to contribute to each member of the fiscal net accumulator. If the contingency contribution is mandatory, the variable value is 100. If the contingency contribution is non-mandatory, the variable value is 0. The system applies these percentage values to the deductions within the fiscal net accumulator.

Contingency Fund Contributions and Net to Gross Calculation

Global Payroll for France delivers the section PRV SE COTIS GN that contains the deductions dedicated to the payee and employer contributions calculations. The system uses this section when processing net to gross calculation.

The system formerly used the PRV SE A36 (Contingency Fund Art. 36) and PRV SE A4 (Contingency Fund Art.4) sections to calculate contingency funds deductions. If you are upgrading from a previous release, you must set the inactivation date for the former contingency funds deductions to reflect the date when you want to apply the new rules. This in turn inactivates the PRV SE A36 and PRV SE A4 deductions (no longer is use) that are part of this section because the system does not call the section anymore.

DADS Setup for Contingency Fund Contributions

You define DADS data type codes on the Institution Type page of the Pension/Ctgcy Institutions component within Human Resources. The system uses the DADS code as the pension code for DADS. Navigate to Set Up HRMS, Product Related, Workforce Monitoring, Regulatory Requirements FRA, Pension/Ctgcy Institutions.

Note that you no longer have to use the CONTFUND and SUPFUND data types to define the DADS codes on the Data Type page of the DADS Structures FRA component because you instead define the codes on the Institution Type page.

DUCS Setup for Contingency Fund Contributions

As soon as the system calculates a set of contingency contributions (employee + employers on the same base) it automatically populates the DUCS writable array that the system later uses in the DUCS computation. The codes are stored in the delivered bracket PRV BR DU CODES. The system uses the DUCS codes in the PRV BR DU CODES bracket plus the code that you define in the institution definition in the DUCS Code field on the Institution Type page of Pension/Ctgcy Institutions component with the HR application. The system uses the DUCS code as the institution number for DUCS.

To set up DUCS for contingency funds, you must set up the PRV BR CONTRIB bracket for calculation of contingency fund contributions. You can also define whether a DUCS contact is a recipient or sender for DUCS type 903 on the Contact Definition page of the DUCS Contacts FRA component.

In previous releases, you had to set up the DUCS contribution list for contingency funds through the family contribution code 909 on the DUCS Contributions page. If you are upgrading from a previous release you must set the inactivation date of the family contribution code 909 to reflect the date when you want to apply the new rules.

Setting Up Contingency Funds for Contribution Calculation

To set up Global Payroll for France to calculate contingency funds contributions:

1. Set up contract data for contingency contracts in the Human Resources application.

   This includes setting up codes for the funds to which employees contribute, defining the institutions that manage the contingency funds, and defining the contingency contracts. Global Payroll calculation process uses this information to calculate contingency funds.

2. Set up the PRV BR CONTRIB bracket for calculation of contingency fund contributions.

   Within the bracket you must define:

   • The element that you want the system to use as the funding base of the contingency contribution calculation when processing payroll.

   • A definition for all contingency funds contributions.

   • The corresponding funding base DUCS code.

   • The code for positive and negative amounts for DUCS.

   • The element used to define the FTE for DUCS.

As part of the setup on for contingency contracts, you must enter the base calculation type on the Pension/Contingency Contracts page. If the Base Calculation Type field value is other than base times rate, you can select Other field value and enter a formula in the Formula Name field. Use of this option overrides all delivered functionality for contingency funds calculation. For example, the declaration does not trigger and the system does not retrieve the data from Huma Resources through the arrays.

See Also

Understanding Pension and Contingency Fund Data

Setting Up Pension/Contingency Fund Contracts

Viewing Delivered Contingency Fund Deductions

This section discusses contingency fund deductions delivered by Global Payroll for France.

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 9.0 PeopleBook.

Contingency Fund Deductions

This table lists the contingency fund deductions that Global Payroll for France delivers:

See Also

Understanding How to View Delivered Elements