CNAVTS' s presentation

CNAVTS (National Old Age Pension Fund for Salaried Workers)

Created in 1945 and covering over 70% of the population, the CNAVTS (Caisse nationale d’assurance vieillesse des travailleurs salariés) is the largest scheme of France’s social security system. It manages the basic pensions of private-sector salaried workers, paying out more than €80 billion each year, including a contribution to the “compensation” mechanism (system of financial solidarity between schemes to offset demographic and economic disparities).

A two-tier system

The French pension system is composed of two tiers, both of which are compulsory. The basic schemes (like the scheme for workers in commerce, industry and services, managed by the CNAV) are financed by employee contributions which are based on wages up to a certain ceiling.

The amount of the pension is generally around 50% of the employee’s salary. Some form of basic pension scheme is compulsory for all categories of workers, regardless of their status.
As the name suggests, the complementary schemes – also financed by employee contributions– top up the pension provided by the basic schemes.

A wide range of functions

The CNAV has several roles:

• It sets direction for the pensions branch of the general social security scheme (Régime général) as regards old age and survivors’ insurance, and social action.

• It opens a file in the name of each individual as soon they enter their first job. It thus administers records for over 60 million contributors.

• It tracks the careers of 17 million contributors and can issue a career statement upon request and free of charge, based on the information furnished in employer declarations.

• It helps future pensioners to prepare their retirement: about 85% of career records of contributors aged between 55 and 59 are verified and updated before they actually apply for their pension, thereby ironing out last-minute glitches. At the age of 58, contributors are invited to contact an advisor to finalize their file, at which point they receive an estimate of their future pension entitlement. This process has been simplified by the “single pension application” which is forwarded to all schemes to which the contributor subscribes or has subscribed to in the past.

• Every month, it pays the pensions of more than 100 million beneficiaries in 150 countries – a total 126 million payments each year.

• It provides social programmes for beneficiaries, funding initiatives such as domestic home help, home improvements and building of residential homes, etc. These personal benefits amount to over €300 million.

• It gives special attention to persons in difficulty, including individuals with gaps in their employment history, widows and widowers and the homeless (whom it helps to identify possible pension entitlements).

A decentralised structure

A public administrative body, the CNAV operates under the supervision of the Minister for Health and Solidarity and the Minister for the Economy and Finance.

Its board of directors comprises representatives of contributors and employers. It is overseen by a Supervisory Board, which includes members of parliament, and is run by a Director and a management team.

On the ground, its operations are implemented by more than 14,500 employees and organised as follows:

• In the Paris region (with a population of 11 million), the CNAV is itself the competent body for dealing with beneficiaries and manages the general scheme pension system directly.

• In Alsace-Moselle, this function is devolved to a regional pension office (CRAV).

• In other part of France, pension services are provided by 14 regional health insurance offices (CRAM)...

• ... and by the general social security offices (CGSS) in the overseas departments.

In all, the pensions branch of the general scheme comprises 252 local agencies and 1,781 advisory centres in mainland France.
Each year, this decentralised structure and a state-of-the-art information system, allows the CNAV to receive 2.5 million visitors, handle 16 million telephone enquiries and award 760,000 new pensions and 125,000 early retirement pensions.

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