Employment and retirement: how to maximize employer benefits?
Take advantage of combining work and retirement to retain key talent, reduce your contributions and optimize employer benefits.
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Employment and retirement: how to maximize employer benefits?
Can you work while retired? Discover the conditions for combining work and retirement benefits.
The combining employment and retirement is a system that allows a retiree to continue working while receiving their retirement pension.
This mechanism offers a valuable opportunity for companies seeking to taking advantage of combining employment and retirement for a company.
Indeed, it facilitates the retention or return of experienced employees to the company, providing a real employer benefit.
L’retirement employment It thus represents a strategic lever for human resource management, the transfer of know-how, and the continuity of key skills. Understanding this system and its possibilities allows for its optimal use.
This article aims to guide you in order to Maximize employer benefits through combined employment and retirement.by detailing the conditions, recent developments and best practices to adopt in order to take full advantage of this regulatory framework.
Understanding the combination of employment and retirement
The combining employment and retirement This refers to the possibility for a retiree to receive their pension while continuing paid employment. This mechanism, also called active retirement, offers interesting flexibility for both the employee and the company.
Two types of accumulation exist:
- The full cumulative This allows retirees to combine their earned income with their pension without limit. This option is for people who have claimed all their retirement benefits (basic and supplementary pensions) and have reached either the legal retirement age with a full career, or the full rate age (generally 67 years old). There is no cap on earned income in this case.
- The capped total This concerns retirees who do not meet all the conditions for full accumulation of benefits. Their earnings are then subject to a cap, often set at 160% of the... Minimum wage or based on their last salary before retirement. Exceeding this limit may result in a reduction of the pension.
Key eligibility requirements to remember:
- For full accumulation, you must have liquidated all your pensions and prove a sufficient period of insurance or reach the age for the full rate.
- The capped accumulation applies without these strict criteria but imposes a limit on income derived from the activity.
For a company, understanding these distinctions is crucial in order to adapt contracts and optimize the management of retired employees engaged in combined employment and retirement.
The new features of the reform of September 1, 2023
The 2023 pension reform introduces major changes regarding the combination of employment and retirement, strengthening the rights of retirees resuming professional activity.
- Acquisition of new pension rights after resuming work
- Since September 1, 2023, retirees who return to work must contribute again to their pension. These contributions entitle them to a new pension, separate from the one they were already receiving. This allows them to increase their future income, a significant change compared to the previous system where no additional pension accrual was possible.
- Opening of a second pension entitlement for active retirees
- This second right concerns periods worked since January 1, 2023. It is capped at 5% of the annual social security ceilingThis measure aims to encourage the resumption of activity while limiting the financial impact on pension schemes.
- Waiting period before returning to work at the last employer
- Retirees wishing to return to work for their former employer must now observe a six-month waiting period between the liquidation of their pension benefits and their actual return to work. This period prevents any opportunistic behavior and ensures sound human resources management.
- Application to self-employed and salaried workers
- The reform concerns both employees and... self-employed retireesThese individuals now benefit from the same opportunities to acquire new rights when resuming self-employment after the liquidation of their pension.
These new measures offer companies more flexibility to integrate or reintegrate retirees into their teams while ensuring a clear and advantageous legal framework.
Advantages of combining employment and retirement for the employer
The work-retirement combination scheme has several Employer benefits combined with retirement not negligible, particularly in a context where the recognition of experienced skills is paramount.
- Access to an experienced and qualified workforce
- You benefit from the know-how and skills acquired by retirees throughout their careers. These employees bring valuable expertise, often difficult to quickly replace with junior profiles.
- Maintaining key skills within the company
- Combining work and retirement makes it easier to retain strategic talent. By keeping these employees, you ensure operational continuity that is essential to the smooth functioning of your organization. This retention also promotes transmission of knowledge to new generations.
- Profits related to standard social security contributions and general reduction in employer contributions
- Employees combining work and retirement remain subject to the same social security rules as other employees. You can therefore benefit from the general reduction in employer contributions, which optimizes payroll costs while complying with current legislation.
- Positive impact on human resource management
- The flexibility offered by this system allows staffing levels to be adapted to actual needs without compromising quality. Combining employment and retirement thus becomes an effective tool for managing your human resources, fostering engagement, and reducing turnover.
For a company to take advantage of combined employment and retirement means fully exploiting these benefits while remaining compliant with the regulatory framework.
This enhances your attractiveness and competitiveness in the job market.
Obligations and precautions for the employer
The employer must comply with several Employer obligations regarding pension accumulation to ensure the device's compliance.
- Nominative social declaration (DSN) It is essential to include a specific code in the DSN (Social Security Declaration) for employees combining work and retirement. This declaration ensures that their particular status is correctly taken into account by social security organizations.
- Compliance with legal deadlines Before resuming work with the previous employer, a minimum waiting period of six months must be observed. This period is necessary to avoid certain penalties and ensure a return to work that complies with regulations.
- Payment of social security contributions The employer continues to pay standard social security contributions on the salaries of working retirees. These contributions generally do not entitle employees to immediate accrual of new pension rights, except in cases introduced by the September 2023 reform.
These obligations ensure rigorous management of combining employment and retirement while securing relationships between employers, retired employees and social organizations.
Specific cases: self-employed individuals and retired employees
Combining work and retirement takes on a particular form for retirees who choose self-employed status. This dual status of "self-employed retiree/employee" implies specific management of rights and obligations.
Specifics of combining benefits for retired self-employed individuals:
- A retired self-employed person can continue their independent activity while receiving their pension, without any income limitation related to retirement, provided that they have liquidated all their pensions.
- The applicable social security scheme depends on the activity carried out: self-employed for micro-enterprise, employee for any salaried activity.
Compatibility between salaried and self-employed work after retirement:
- It is possible to combine salaried employment and self-employment, but social security contributions are calculated separately according to each scheme.
- Compliance with the specific rules for combining employment and retirement is required for each activity, particularly with regard to declaration and ceilings.
Impacts on social and tax rights:
- Contributions paid as a self-employed individual may entitle you to a second retirement account, according to the 2023 reform.
- For tax purposes, the income from the two activities is declared separately but integrated into the overall calculation of income tax.
- Dual employment offers increased flexibility, while requiring increased vigilance regarding reporting obligations and monitoring of acquired rights.
Strategies to maximize employer benefits through combined employment and retirement
To fully enjoy the combining employment and retirement for a companyIt is essential to adopt appropriate employer strategies for combining retirement benefits.
Identify strategic retiree profiles
Target former employees or experts whose key skills meet the company's current needs. These profiles bring added value through their experience, particularly in positions requiring specific expertise or team support.
Adapting employment contracts to the legal framework
Ensure that contracts comply with the rules for full or capped accumulation of benefits, including the necessary clauses to guarantee social and tax compliance. This avoids any legal risks related to incorrect declarations or exceeding the limits.
Valuing the experience of retirees
Implement a management system that recognizes their contributions while ensuring compliance with social obligations. Optimizing HR for active retirement involves creating an environment where these employees feel valued and motivated, thus fostering their long-term commitment.
These approaches make it possible to optimize the management of senior talent while strengthening the overall performance of the company.
Conclusion
The Summary of employer benefits for active retirement highlights the concrete benefits of combining employment and retirement for the company: maintaining key skills, accessing an experienced workforce and optimizing social charges.
Mastering the updated regulatory framework is essential to fully benefit from this system in full compliance.
Future prospects for combining work and retirement: recent reforms pave the way for better recognition of active retirees, thereby strengthening the partnership between employers and retired employees. Leveraging combined work and retirement is becoming an essential strategic tool for companies in an evolving talent management landscape.
Frequently Asked Questions
What is combined employment and retirement and what forms does it take?
Working while receiving a pension is a system that allows a retiree to return to work while continuing to receive their retirement pension. There are two main forms: full working while receiving a pension, with no income ceiling, and capped working while receiving a pension, which is subject to income limits. Each form has specific eligibility requirements.
What are the new features introduced by the reform of September 1, 2023 regarding the combination of employment and retirement?
The reform of September 1, 2023 introduces the acquisition of new pension rights after resuming activity, the opening of a second pension right for active retirees, a waiting period before resuming work with the last employer, and extends these measures to self-employed workers as well as employees.
What are the advantages of combining employment and retirement for the employer?
Combining employment and retirement allows the employer to access an experienced and qualified workforce, maintain key skills within the company, benefit from a general reduction in employer contributions, and improve human resource management.
What obligations must the employer respect when using the combined employment-retirement scheme?
The employer must make a specific nominative social declaration (DSN) for employees in combined employment and retirement, respect the legal deadlines before resuming work with the last employer, and ensure the payment of social contributions even if this does not immediately lead to the acquisition of new rights, except for recent exceptions.
How does combining employment and retirement work for a retired self-employed person?
For a retired self-employed individual, combining work and retirement benefits presents specific challenges related to dual-activity status. It is compatible with salaried or self-employed work after retirement, but the specific impacts on social security and tax rights in this situation must be considered.
What strategies can be implemented by the employer to maximize the benefits of combining work and retirement?
The employer can identify strategic retiree profiles for their company, adapt employment contracts to the legal framework of combining employment and retirement, value the experience of retirees while respecting social and tax rules in order to optimize their human resources through this system.
