For its 20th anniversary, the French public service additional pension scheme establishes itself as a high-performing, solid, secure, and responsible scheme

Paris – Public pension fund serving civil servants and socially responsible institutional investor, the French Additional Civil Service Pension Scheme (ERAFP) publishes today its annual report, which details the performance of the Scheme in 2024 in all its aspects, as well as its sustainability report dedicated to ESG.

Despite the increasing uncertainty of the international context, the year 2024 is characterized by very satisfactory performance for ERAFP. The performance of the investments has been particularly dynamic, with an internal rate of return of 5.9% for 2024, bringing the annualized IRR since inception to 4.3%. The financial robustness of the Scheme is also strengthened, with a coverage ratio of 117.3% in book value and 135.8% in economic value. These results are due to the prudent and increasingly diversified management of financial assets. In 2024, asset allocation favored adaptability: bond investments, particularly in credit (57.8% of the portfolio in flow), continued diversification in variable income assets (20.2% in equities and 9.8% in private equity and infrastructure in flow), with significant selectivity in real estate (9.3% in flow and ERAFP has confirmed its commitment to housing for civil servants), for a total portfolio of €47.8 billion as of December 31, 2024, largely benefiting the financing of the European and French economy (more than 77% of the outstanding amount, and more than a third in France).

In this context, the new board of directors installed in January 2024 continued and deepened the action initiated by the previous term, notably through the implementation of the repricing of the scheme in two successive phases, which allowed the service value of the point to evolve by 6.8% on January 1, 2024, and then by 4% on January 1, 2025, which is two points above inflation, bringing the technical yield to 3.89%.

"The 20 years of RAFP in 20 key moments" listed in the report clearly illustrate the growth of the Scheme and the significant place it now occupies in the retirement of civil servants. It is noted that henceforth, the amounts paid as annuities are higher than the amounts paid as lump sums and are growing rapidly, a sign of the Scheme's increasing maturity.

Finally, after publishing its climate policy, ERAFP published for the first time in 2024 the biodiversity footprint of its portfolio, with the work carried out on this new subject for investors being detailed in the sustainability report.