- How is my pension paid through the alternating work-retirement program? On a full-month basis? On a partial-month basis?
The alternating work-retirement program allows an air crew member to work at a slower pace as set forth by a company agreement. It consists of alternating scheduled periods of employment with scheduled unpaid periods off work over the course of a calendar year.
Pensions are paid through the alternating work-retirement program under a set of rules that have been adopted by CRPN’s Board of Directors to offer members this opportunity to work at a slower pace. It is based on a two-step pension claim process (for members who qualify to claim their entitlements):
- a partial claim for entitlements through the alternating work-retirement program
- then a claim for the portion of the entitlements not claimed through the alternating work-retirement program, when the member retires from all air crew employment.
Each claim comes under the rules which are currently applicable on the effective date for that claim.
You can be paid your pension:
- on the basis of full calendar months (the full-month basis),
- or on a partial-month basis (unpaid periods off work are stated as a monthly number of days off work ranging from 6 to 15. The number of days off work must be the same for each month in the program and set for the entire year)
Employers draw up a calendar-year schedule of all periods off work through the alternating work-retirement program and submit it to CRPN.
You can refer to informational guide “Retiring through the alternating work-retirement program (as from January 1st, 2019)”.
- Can I draw my pension through the alternating work-retirement program on a full-month basis?
Pensions can be paid through the alternating work-retirement program on a full-month basis under the following rules (no exceptions allowed):
- The applicant member’s employer must have rolled out a company agreement which allows for enrollment in an alternating work-retirement program on a full-month basis.
- CRPN must receive your application to enroll in the alternating work-retirement program by the month prior to the 1st month off work for which you want to draw your pension (you can apply to claim your entitlements online through your personal account),
- CRPN must receive all schedules of months off work for the following year by December 15th of each year,
- No changes (*) can be made to the schedule that has been set for the year unless the member either resumes full-time employment or enters full retirement, except due to a “force majeure” event and other situations listed in their company agreement,,
- Members participating in the alternating work-retirement program agree not to engage in any paid professional air crew employment during their scheduled periods off work.
(*) Unauthorized changes will result in termination of the member’s partial-month-basis enrollment in the alternating work-retirement program. These consist of changes in work pace (switching from a full-month to a partial-month basis or vice versa), or of changes in the member’s monthly number of days off work.
Important! Compliance with the provisions above is mandatory: “In the event of any violation of procedure, CRPN will not pay benefits to the air crew member and will suspend payment of benefits under the alternating work-retirement program.”
You can refer to informational guide “Retiring through the alternating work-retirement program (as from January 1st, 2019)”.
- Can I draw my pension through the alternating work-retirement program on a partial-month basis?
Pensions can be paid through the alternating work-retirement program on a partial-month basis under the following rules (no exceptions allowed):
- The applicant member’s employer must have rolled out a company agreement which allows for enrollment in an alternating work-retirement program on a partial-month basis.
- CRPN must receive your application to enroll in the alternating work-retirement program by the month prior to the 1st month off work for which you want to draw your partial pension (you can apply to claim your entitlements online through your personal account),
- CRPN must receive all schedules of days off work for the following year by December 15th of each year,
- No change(*) to the schedule defined for the year can intervene on a financial year excluding return to full-time employment or cessation of activity, except in cases of force majeure and cases listed in the company agreements,
- Members participating in the alternating work-retirement program agree not to engage in any paid professional air crew employment during their scheduled periods off work.
(*) Unauthorized changes will result in termination of the member’s partial-month-basis enrollment in the alternating work-retirement program. These consist of changes in work pace (switching from a full-month to a partial-month basis or vice versa), or of changes in the member’s monthly number of days off work.
Important! Compliance with the provisions above is mandatory: “In the event of any violation of procedure, CRPN will not pay benefits to the air crew member and will suspend payment of benefits under the alternating work-retirement program.”
You can refer to informational guide “Retiring through the alternating work-retirement program (as from January 1st, 2019)”.
- How will my pension be calculated when I claim the first portion of my entitlements?
Partial claims for entitlements are based on the career the member has accrued up to the date on which their pension through the alternating work-retirement program becomes payable, either on a full-month or on a partial-month basis. The following factors, calculated as of the same date, will apply:
- “TV” (valuation rate for years beyond the member’s best 25): this is calculated based on the member’s age and the time credited to their account as of the date on which their pension through the alternating work-retirement program becomes payable,
- Early-claim, decrease, or rate reduction factor: this is calculated as of the date on which the member’s pension becomes payable,
- The current “IVSC” (Corrected wage variation index, used for entitlement claims) on the date on which the member’s pension becomes payable. The amount of the member’s entitlements will then be updated at the upward adjustment rate for pensions set forth by article R.426-16-2 of the French Code of Civil Aviation,
- Social security ceiling (ceiling for the 1st and 2nd salary brackets as of the date on which the member’s pension through the alternating work-retirement program becomes payable),
- Number of “a” days as set forth by article R.426-5 d of the French Code of Civil Aviation.
You can refer to informational guide “Retiring through the alternating work-retirement program (as from January 1st, 2019)”.
- What specificity for my pension rate if I go with the partial-month basis?
You are planning to enroll in the alternating work-retirement program on the partial-month basis, or are already enrolled in the program and want to change over from the full-month to the partial-month basis.
How your pension will be calculated
The pension you are paid under the partial-month basis is prorated on the basis of your 30-day monthly pension, as determined by your number of days off each month.
Your partial-month-basis pension will be paid for each month in which you have days off as part of the alternating work-retirement program.
Example
- If you are enrolled in the alternating work-retirement program on the partial-month basis with 7 days off per month over 10 months (with full-time employment in July and August), you will be paid 7/30ths of the monthly value of your pension from January through June and from September through December.
You can refer to informational guide “Retiring through the alternating work-retirement program (as from January 1st, 2019)”.
- Do I need to submit any paperwork to CRPN in order to start drawing my pension?
Once you have been approved to claim your pension through the alternating work-retirement program, your pension will be paid in accordance with the schedule which your employer will have sent us. This generally means that no action is required on your part.
You can check it in your personal account, section alternating work-retirement program.
You can refer to informational guide “Retiring through the alternating work-retirement program (as from January 1st, 2019)”.
- Will my pension go up while I am enrolled in the alternating work-retirement program?
For as long as you draw a pension on the basis of your scheduled months or monthly days off work, your pension will be uprated each year at the upward adjustment rate for pensions (rapport des IVP) which is set forth by article R.426-16-2 of the French Code of Civil Aviation, with no change to the factors used to calculate your partial claim for entitlements.
You can refer to informational guide “Retiring through the alternating work-retirement program (as from January 1st, 2019)”.
- What steps do I need to take before I enter full retirement after participating in the program on the full-month basis? On the partial-month basis?
When you enter full retirement, you will need to send CRPN your application to claim the remainder of your entitlements which you did not claim through the alternating work-retirement program. CRPN will need to receive your application by the month in which your air crew employment contract is terminated (Our online application to claim entitlements is available through your personal account).
You can refer to informational guide “Retiring through the alternating work-retirement program (as from January 1st, 2019)”.
- What does it mean that my pension is being paid on a provisional basis?
When you enter full retirement, CRPN can begin paying your pension and you will receive a bank transfer each month, according to the schedule approved by the Board of directors.
The pension which you are (provisionally) paid will continue to be calculated using the same rules as for the alternating work-retirement program, until we have the last wage components that we need in order to definitively calculate your pension.
This final calculation will take place as soon as possible, once the second portion of the member’s entitlements has been updated.
You can refer to informational guide “Retiring through the alternating work-retirement program (as from January 1st, 2019)”.
- How will my pension be calculated when I claim the remainder of my entitlements?
The following will occur when you enter full retirement:
- Your total career length and salaries will be counted toward the pension entitlement in connection with your first partial claim (with no change to the factors listed above),
- And you will claim the remainder of your entitlements not claimed through the alternating work-retirement program. This will be calculated using the same basis of your total career. When you claim the second portion of your entitlements, the following factors, which are calculated on the date of your claim for this second portion of your entitlements, will apply:
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- “TV” calculated on the effective date for this claim
- Rate reduction, calculated on this same date
- Current “IVSC” on the effective date for this claim
- Social Security ceiling
- Number of “a” days as set forth by article R.426-5 d of the French Code of Civil Aviation.
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Once the first portion of the member’s entitlements has been updated and the remainder of their entitlements has been claimed, each portion will be assigned a weighting factor which will be used to perform the final calculation of their pension:
- The first portion of the member’s entitlements, which they will have claimed through the alternating work-retirement program and will have been updated as above on the effective date for the remainder of their entitlements, will be weighted using a pro rating factor corresponding to the ratio between the number of days paid under the alternating work-retirement program for the period beginning when their pension through the program became payable and the date they entered full retirement, and the total number of days in that same period;
- The second portion of the member’s entitlements, calculated as above, will be weighted using a pro rating factor that is equal to the difference between 100% and the percentage assigned to the portion of their entitlements that was claimed through the alternating work-retirement program.
You can refer to informational guide “Retiring through the alternating work-retirement program (as from January 1st, 2019)”.