The CRDS tax

The CRDS “social debt redemption” tax was instituted in 1996 to provide CADES with funds it would need to retire social debt. Its current rate is 0.5%. It is charged on all earned income, replacement income, income from assets and investments, from the sale of precious metals and on winnings from games of chance. Most of the income exempted from this tax is replacement income that falls below a minimum level and some types of solidarity allowances, which consist mainly of unemployment and pre-retirement benefits and disability and retirement pensions, when these are not liable for income tax. The Act of 13 August 2004 expanded the taxable base from 95 to 97% of gross earnings and unemployment benefits. The Social Security Finance Act for 2012 increased this base to 98.25%.


The CSG tax

The CSG “general social contribution” tax was instituted in 1991. Until 2008, it was divided between the FSV (the old-age solidarity fund), CNAF (the national family allowances fund), the basic national health insurance schemes and CNSA (the national solidarity for autonomy fund).

To service the new 27 billion euro debt approved by the French parliament under the Social Security Finance Act for 2009, and pursuant to the Organic Act of 2 August 2005, CADES was granted 0.2 percentage point of the CSG tax. The Act No. 2010-1594 of 20 December 2010 increased CADES’ share of the CSG to 0.48 of a percentage point.

Since the Social Security Financing Act for 2016 was voted by French Parliament, CADES' s sourcesof funding has been simplified with the replacement of the 1.3% levy on capital income by an additional 0.12 point of CSG.

The CSG tax is very similar to the CRDS. It is mainly obtained from earned income and also from replacement income and income from assets, investments and game winnings.


The social levy on capital income

To enable CADES to service additional debt, Act No. 2010-1594 of 20 December 2010 granted CADES 1.3% of the social levy on capital income. Initially set at 2.2% of asset and capital income, the social levy rate was increased to 3.4% on 1 October 2011, and to 5.4% on 1 July 2012, then decreased to 4.5% on 1 January 2013.

Social Security Fiance Act n°2015-1702 of 21 December 2015 removed the 1.3% levy on capital income which was allocated to CADES


The annual payment from the FRR pension reserve func

Under the Social Security Financing Act No. 2010-1594 of 20 December 2010 for 2011, to balance out the funding of pension reform, CADES is to receive an annual payment of €2.1 billion from 2011 to 2024, representing a total of 29.4 billion euros.


Other resources

Under Article 9 of the government order of 24 January 1996 rental property belonging to the CNSS and ACOSS, excluding premises used for administrative purposes, would be sold at the initiative of its owners and CADES would receive the proceeds from these sales. This article also stipulated that such property that was not sold by 31 December 1999 would be transferred to CADES, along with all associated rights and obligations. All property was to be sold by 31 December 2008.

Under the ministerial order of 27 December 1999, published in the Journal Officiel of 30 December 1999, rental property belonging to CNAVTS was also transferred to CADES. The board of directors agreed to sell this property as soon as possible and at the best possible price. All of this property had been sold by 31 December 2003, for a total of 467.2 million euros.