The Monegasque Supplementary Pension Fund: what’s it all about?

monaco pension fund

A decade in the making, the Monegasque Supplementary Pension Fund is set to offer better terms to the Principality’s pensioners from 2024. Here’s how it will work. 

As France very publicly struggles with pension reforms, Monaco has quietly gone about restructuring its own system. 

Christophe Robino, Monaco’s Minister of Social Affairs and Health, was able to make the formal announcement of the new plan – the Monegasque Supplementary Pension Fund (CMRC) – after the National Council’s 13th April unanimous vote turned the bill into law. After a decade of efforts to reach this point, the CMRC will come into effect from 1st January 2024. 

The dual-purpose action has done two major things: notably to improve the supplementary retirement pension currently on offer from France’s Agirc-Arrco scheme, and to lower contributions paid by employees. 


The big news is that Monaco has left the French Agirc-Arrco retirement plan set-up to create its own sovereign fund, one that will be under the control of the Monegasque government and therefore offering more flexibility and lessening the disparity between the French fund’s rules and Monaco’s retirement system. 

“We wanted to ensure our sovereignty and improve our attractiveness,” Robino told Monaco Matin recently. “By managing this fund ourselves, we will ultimately provide better pensions to retirees while having less weight for employers and employees. This therefore means, in the long term, better incomes for the latter.” 

Given the changes over the border in France, the Monegasque government recognised that sooner or later, there would be problems arising from the differences in the two systems. By repatriating the system, it heads off any issues at the pass.  


The scheme will affect 200,000 current and past employees who work, or have worked, in Monaco for a minimum of 10 years. Those already retired will continue to receive their pensions as before from Agirc-Arrco, but will also get a bonus benefit from the CMRC in the interest of fairness.  

The supplementary scheme for civil servants is on the state budget and will represent a long term, substantial saving for the state, perhaps to the tune of several tens of millions of euros, according to Robino. Financial impact studies will have to be undertaken, though, before firm decisions are made.  

The terms of the takeover from Agirc-Arrco establish that Monaco will reimburse pensions already liquidated to the tune of €2.8 billion. The state will have 13 years to reimburse France on a hybrid plan that allows for the Monaco fund to build up reserves as well as pay back what is owed. Then it will be free and clear to operate as the government sees fit.  

“At the end of 40 years, this Monegasque Supplementary Pension Fund will be in balance, if not profitable,” said Robino, adding that this is rare for a pension plan. He also said that the gains are expected to be significant, citing “an increase of 5 to 6% in the long term”.   


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