Supplementary Pension Scheme for Self-Employed Farmers

Mandatory insurance

• Persons insured in the farmers’ old age pension scheme.

General finances*

• Mainly PAYG-financed from insurance contributions.

* This scheme was established in 2003. For the financing of the benefits corresponding to the pensionable periods before 2003, it is the state that bears all expenditures.

Contribution rates

• The contribution rate is 4% (in 2019) for entrepreneurs. 
• The basis for the calculation of the contribution is the entire professional revenue. 
• Other beneficiaries (e.g. family members) shall pay a lump sum contribution.

Taxation of contribution payments

• Tax exemptions for contribution payments.

• The scheme is administrated by the Mutualité sociale agricole.

• The person must have the right to benefit from the farmers’ old age pension scheme (i.e. the person must fulfil the conditions to apply for the farmers’ old age pension).

Pension benefits

• The benefit is determined by a system of points. 
• The number of the points acquired is determined by the contributions paid by the entrepreneur.
• Other beneficiaries acquire 16 points based on the lump sum contribution.

Factors for benefit calculation

• The point value is determined every year by decree.
• Under certain conditions, the level of the benefit can be raised to 75% of the minimum wage (cf. complément différentiel de retraite complémentaire).

Taxation and social security contributions

• Benefits are subject to income tax.
• Pension benefits are subject to CSG, CRDS and CASA.